The Sports Economist

Many Japanese baseball officials are outraged that United States teams are courting Tazawa, a hard-throwing right-handed pitcher, because they insist it is long-established practice for amateurs like him to be strictly off limits to major league clubs. Even some American general managers, including the Yankees’ Brian Cashman, agree.

Major League Baseball officials maintain that the letter of their protocol agreement with their Japanese counterparts, Nippon Professional Baseball, does not forbid either league from courting amateur talent from the other’s nation. When one Japanese representative characterized the rule as a gentlemen’s agreement during a meeting in New York, he was angrily rebutted by a Major League Baseball official, according to two attendees.

The Tazawa dispute extends beyond one pitching phenom and an interpretation of honor. The Japanese major leagues have already seen established stars leave for American clubs, and amateurs following Tazawa’s path away from those leagues could further hurt the leagues’ long-term viability.

But sports talent is an increasingly free-flowing market — notably demonstrated this summer when Brandon Jennings, one of the United States’ top high school basketball players, signed to play professionally in Italy for $1.2 million rather than play at a college in the United States.

Labels: baseball, cartels, collusion, international trade, labor markets

Thomas T. Roberts, a prominent arbitrator best known for his mid-1980s ruling that major league baseball club owners had improperly colluded to prevent free-agent players from obtaining richer contracts, died last Wedenesday. He was 84.

Roberts (Loyola University, Loyola Law School) was fired twice by Major League Baseball management for issuing rulings in favor of the players. In 1986, he ruled that teams could not negotiate drug-testing clauses with players individually; they had to deal with the players union under the collective bargaining agreement.

After being reinstated, Roberts issued his most famous ruling in the baseball case widely-known as the “collusion case” in which he found that, following the 1985 season, no teams had sought to sign free agents unless their old clubs had lost interest in them. He termed that “a strong indication of concerted action,” something prohibited by baseball’s collective bargaining agreement. Roberts was fired again by management. But in 1990 his ruling was vindicated when the owners agreed to pay affected players $280 million plus interest to settle the collusion cases.

Labels: arbitration, collusion, Major League Baseball