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Monday, May 24, 2021

Tampa Bay Rays minority owners sue Sternberg, say he secretly negotiated Montreal deal

A group of minority owners of the Tampa Bay Rays have filed a lawsuit against Stuart Sternberg, the principal owner, alleging he has been engaged in a “relentless scheme” to take over control of the team and began secretly negotiating to sell an interest in the Rays to Montreal investors in 2014 — years before it was publicly disclosed.

The suit, which was filed Saturday in Pinellas County, accuses Sternberg of depriving the minority owners of their profits from the team while simultaneously requiring them to pay taxes on that would-be income.

That tactic squeezed out some partners, forcing them to sell their shares to Sternberg at a fraction of their value, the plaintiffs said. In January 2020, he transferred “the entire baseball club and franchise” to a new company under his sole management, without notifying the other partners, the lawsuit says.

 

RoyalsRetro (AG#1F) Posted: May 24, 2021 at 05:13 PM | 12 comment(s) Login to Bookmark
  Tags: montreal, rays

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   1. Jay Seaver Posted: May 24, 2021 at 05:55 PM (#6020614)
My head kind of hurts just reading this stuff, the way it does with a lot of financial material, and makes me wonder about requesting a jury trial. Are twelve people off the street expected to understand it? This seems pretty specialized, and makes me wonder if the plaintiffs have people who are really good at making it clear or if they're just planning on tagging him as scummy and letting that do the work.

Also, if Sternberg defaulted on the agreement with the city, what's that mean? I'm guessing it doesn't become null and void, because that's what he would want.
   2. . . . . . . Posted: May 24, 2021 at 08:48 PM (#6020630)
Are twelve people off the street expected to understand it?


Not really.

This seems pretty specialized


oh yes its impenetrable

makes me wonder if the plaintiffs have people who are really good at making it clear or if they're just planning on tagging him as scummy and letting that do the work


both

my guess here without reading the complaint is that the plaintiffs figure they have like a 1/3 chance of winning before a judge, but a jury is like a random number generator and that's threatening to Sternberg b/c of the consequence of losing, so enhances their settlement value.
   3. Rough Carrigan Posted: May 24, 2021 at 08:56 PM (#6020632)
Don't know if the allegations are true or not. But the idea that a Goldman alum would be lying, scum does not require great efforts of extrapolation to consider.
   4. Steve Balboni's Personal Trainer Posted: May 25, 2021 at 07:38 AM (#6020714)
Maybe I am reading this incorrectly, but does this mean Carl Crawford's deal with the Red Sox is now retroactively void? It must, right? Please?
   5. Starring Bradley Scotchman as RMc Posted: May 25, 2021 at 09:06 AM (#6020720)
Re 4: Yes. (Unfortunately, it also means the Rays have to give back last year's American League pennant.)
   6. Slivers of Maranville descends into chaos (SdeB) Posted: May 25, 2021 at 12:07 PM (#6020738)
Maybe I am reading this incorrectly, but does this mean Carl Crawford's deal with the Red Sox is now retroactively void? It must, right? Please?


It does, but in a strange twist they are now on the hook for the rest of Miguel Cabrera's contract.
   7. Steve Balboni's Personal Trainer Posted: May 25, 2021 at 01:40 PM (#6020745)
I am amazed and impressed that the Rays are generally able to win as many games as they do, with a stunning amount of crappiness and dysfunction forever around them. Nobody goes to the games; the stadium is, and has been for their entire history, a dump; ownership is embroiled in various forms of drama going back to the origins of the team; they have been counting down the days until they can leave Tampa for (seemingly) 15 years; they can never keep anybody who is really good; and they have no money.

And yet - they are again really competitive, currently 30-19 and in first place in a tough division. Their roster is "eh" - they have one starting pitcher who is really good (Glasnow, who they got with Meadows and Shane Baz for the implosion of Chris Archer); a bunch of relievers that are seemingly interchangeable; and a lineup of guys that don't make any money, don't have much of a pedigree, and are spare parts (arguably their best hitter so far this year is Joey Wendle - who they acquired for Jonah Heim.) I'm a Red Sox fan, so they are in my team's division, but God bless them - I hope they keep finding a way to be successful on the field, because it is fascinating to watch.
   8. . . . . . . Posted: May 25, 2021 at 03:14 PM (#6020763)
Front office competence matters. Sternberg is super smart, picks smart people to run his team, and is aligned with them pushing the envelope on conventional wisdom to win. Their whole set up is basically a bunch of guys shooting granny style free throws at a 90% clip.
   9. McCoy Posted: May 26, 2021 at 09:33 AM (#6020896)
Haven't read the complaint and won't. But the description above seems pretty easy to understand. People believe in fairness and if the jury thinks Sternberg is taking advantage of his partners they're much more likely to side for them.
   10. JJ1986 Posted: May 26, 2021 at 12:27 PM (#6020929)
In January 2020, he transferred “the entire baseball club and franchise” to a new company under his sole management, without notifying the other partners, the lawsuit says.
I'm not an expert, but could he do this without MLB approving it?
   11. gef the talking mongoose, peppery hostile Posted: May 26, 2021 at 01:25 PM (#6020939)
Manfred would consider it.
   12. Rally Posted: May 26, 2021 at 02:43 PM (#6020964)
(arguably their best hitter so far this year is Joey Wendle - who they acquired for Jonah Heim.)

The guy who starred in Moneyball? Nice trade.

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