For those of you who may have missed the Associated Press article,
Representative John Conyers (D-Mich.) has called for the resignation of
Allan H. "Bud" Selig as the commissioner of baseball.

Conyers is apparently upset about a bridge loan for $3 million received by
the Milwaukee Brewers in 1995. The loan was made to the Brewers by Tempus
Investment Corporation. Current Twins owner Carl Pohlad had an extensive
ownership stake in Tempus at the time of the loan. The loan was secured by
money-market funds worth about 25% of its value, and the interest rate was
10.5%, or prime plus a point and a half. The controversy over the loan is
the result of a clause in the bylaws of Major League Baseball that requires
disclosure of related-party loans between owners. Selig and Pohlad were
supposed to tell all the other owners about the arrangement. There is no
prohibition of loans between teams.

Conyers appears to be pretty upset about the entire arrangement; either
that, or he sees this as an opportunity to make a point in the court of
public opinion, and a chance to go after Selig where he’s vulnerable, and
something can be proven. Kind of like going after Al Capone for tax evasion,
or O.J. Simpson for littering: if you can’t prove what you really want to
prove, find something else to prosecute.

Rep. Conyers sent a letter to Selig in which he wrote, "In light of
this disclosure and your apparent unwillingness to reveal other financial
information that you assert supports your decision to eliminate two baseball
teams, I regret that I must call on you to resign as commissioner of major
league baseball." In other words, he didn’t believe Selig in front of Rep.
Sensenbrenner’s House committee a few weeks ago.

What Conyers doesn’t understand is that Bud Selig is not your father’s
commissioner. "Your job as commissioner is to do what is in the best
interest of baseball," wrote Conyers, illustrating his antiquated
notion of what the Office of the Commissioner is supposed to be. The
commissioner’s office is no longer an overarching pedestal from which one
governs baseball with some high-minded ideal of what the game should be.
Selig is effectively a hybrid between a Chief Executive Officer and a Chief
Marketing Officer. He serves at the behest of the owners, and he needs to
keep them happy in order to keep his job. He spends a great deal of time
trying to manage relationships, build consensus, and put the best public
face on the game he possibly can, so that people keep watching and buying

Selig’s constituency is not baseball as a whole, or the fans, or the
pundits, or the gamblers, or the bankers. His constituency is the owners,
and the owners alone. I’m sure he’d prefer that what’s best for the owners
is what’s best for baseball, and he might even believe it when it’s not
necessarily the case.

Selig’s three-year contract extension gives Conyers even more reason to
doubt the owners’ claims that they’re losing money. If they were, why would
they rush to give a contract extension to The Chief? The appearance of
solidarity for negotiations with the MLBPA is one thing, but money makes the
world go ’round. CEOs lose their jobs easily enough when their company is
profitable but not growing. Boards of directors and shareholders tend to get
pretty cranky when their company is bleeding cash, and executives suddenly
start to leave "in order to pursue other opportunities." (Read:
"You’re canned. Clean out your desk.")

It’s easy to understand Rep. Conyers’s frustration, but it’s hard to support
his action. Major League Baseball is a privately-held business, one which
should be free to run itself in any legal fashion whatsoever. Conyers has
the power to attempt to constrict the legal framework within which baseball
has to operate. I get really nervous whenever a government official starts
writing letters suggesting that a particular executive step down. Conyers
has already started to back away from his letter, and he would be well
advised to continue doing so at full speed.

Bud Selig isn’t a perfect commissioner. Some of his actions deserve careful
scrutiny under as much light as possible. The same is always true of the
actions of government.

Gary Huckabay is an author of Baseball Prospectus. You can contact him by
clicking here.

Thank you for reading

This is a free article. If you enjoyed it, consider subscribing to Baseball Prospectus. Subscriptions support ongoing public baseball research and analysis in an increasingly proprietary environment.

Subscribe now
You need to be logged in to comment. Login or Subscribe