Saturday, January 23, 2010

Potential Conflict of Interest in the GBL

Hot Corner Baseball LLC stepped up to the plate and helped bring the St. George Roadrunners franchise back from the brink of extinction.  That's the good news.  The other side of the situation is the close link between the owners of the St. George and Maui franchises.  The GM of the Roadrunners, Rick Berry, is also the President of  the expansion Na Ikaika Koa Maui.  The Maui team is owned by XnE Inc.

But consider this situation: The Roadrunners are now in the North Division, while the Strong Warriors of Maui are in the South Division.  Suppose the expansion Maui team falls out of contention in August (a reasonable assumption for 2010) and the Roadrunners are in a pennant race with the upstart Victoria Seals.  What would happen if Maui dealt three or four of their best players to the Roadrunners for a bag of used baseballs, a Jugs radar gun and cash?  Can you imagine the reaction from Victoria fans?  Let's hope the GBL Commissioner, Kevin Outcalt, would have the gumption to step in and nullify such a trade (under a "best interests of the GBL" clause).

Here's an even scarier scenario to envision: XnE has negotiated a Territory Operating Rights agreement (for $800,000 USD) which will allow it to add another three GBL teams in the state of Hawaii.  Can you imagine the potential conflict of interest if they owned four Hawaiian teams in the GBL?!?!