SEOUL, SOUTH KOREA - MARCH 18: Shohei Ohtani #17 and Mookie Betts #50 of the Los Angeles Dodgers are ... [+]
The Los Angeles Dodgers and New York Yankees are crown jewel franchises for Major League Baseball. On Opening Day, both are confronting a variety of dilemmas: a gambling controversy, taxation, payroll efficiency, injuries and position changes for superstar ball players. Even though the Dodgers and Yankees have been immune from the demise of the regional sports network model, they find themselves under an intense microscope on business and personnel decisions.
Shohei Ohtani Gambling Scandal
After committing $700 million to designated hitter/right-handed pitcher Shohei Ohtani in a complex contract that puts him on the Dodgers’ payroll for 20 years due to a $680 million deferral in compensation, the international superstar is embroiled in a gambling controversy that could rock Major League Baseball to its foundation. As a formal investigation will seek the truth when it comes to the extent of Ohtani’s involvement and knowledge of his former interpreter’s gambling addiction, the immaculate reputation and shroud of secrecy he has enjoyed is being torn to shreds. Hypocrisy has become a popular word to describe Major League Baseball’s lucrative partnerships with sports gambling companies and how they plan on maintaining honesty and integrity when it comes to athletic competition. Once viewed as a cardinal sin, sports gambling has become an accepted practice for fans thanks to the financial benefits it provides Major League Baseball as the sport strives to surpass $12 billion in annual revenue. Expect the darkness to linger for the Dodgers and Ohtani until clarity is achieved at the conclusion of the investigation.
The Competitive Balance Tax has been a painful cost of doing business for a select group of major league ball clubs over the past two decades. Thanks to data compiled by the Associated Press, the Dodgers and Yankees have been Competitive Balance Tax payors a combined 26 times at a price tag of nearly $624 million between the 2003-2023 seasons. The egregious overspending on payroll has produced a single world championship for the Dodgers (2020) and Yankees (2009) during this period.
Under the current collective bargaining agreement (2022-2026), the Dodgers were a Competitive Balance Tax payor for a third consecutive time last season for $19,423,297 while the Yankees were a second-time payor at $32,399,366. According to Cot’s Baseball Contracts, both ball clubs are projected to have 2024 payrolls for Competitive Balance Tax purposes of more than $309 million with the threshold set at $237 million. Besides Ohtani, the Dodgers have embraced the concept of deferred compensation as evident in the contracts of shortstop Mookie Betts, first baseman Freddie Freeman and outfielder Teoscar Hernández. Even the recently announced 10-year, $140 million contract extension for catcher Will Smith includes deferred compensation according to Mark Feinsand of MLB.com.
This chart breaks down the estimated 2024 Competitive Balance Tax penalties for the Los Angeles ... [+]
Gerrit Cole’s Injury
The Yankees begin the 2024 regular season with concerns regarding the health of defending American League Cy Young Award winner Gerrit Cole due to nerve inflammation and edema in his right elbow. While he could be missing from the Yankees’ pitching rotation for two months, they are also without the services of utility ball player DJ LeMahieu due to a bruised right foot. Center fielder Aaron Judge missed time during spring training with an abdominal injury as the Yankees understand that his right big toe will require constant maintenance after tearing a ligament in it last June against the Dodgers.
If the Dodgers and Yankees weren’t already dealing with enough, both ball clubs decided that position changes were necessary for two of Major League Baseball’s biggest superstars. Just as fans were getting accustomed to the idea of Betts making a position change from right field to second base, the Dodgers added another level of intrigue by naming him the everyday shortstop given the defensive struggles of Gavin Lux during spring training. After the blockbuster trade that brought outfielder Juan Soto to the Yankees and the ensuing one-year contract valued at $31 million in his final year of arbitration eligibility, Soto’s offensive prowess briefly overshadowed his defensive liabilities. Besides batting order changes, the Yankees had to rethink their outfield defense beginning with the everyday presence of Judge in center field.
As the goal is always to prevent runs, are these moves logical given the defensive success of both ball players in right field? It seems as if the Dodgers and Yankees are moving elite defenders at one position to address a roster deficiency with the hope these ball players can replicate their defensive excellence at another position. In Betts’ case, there were encouraging signs that he could be successful at second base in terms of defensive runs saved (DRS) and ultimate zone rating (UZR). In 485 innings last season at second base according to FanGraphs, Betts posted a 6.0 DRS and 1.0 UZR. The move was viewed as a means of keeping Betts healthy while increasing his offensive production by playing a less strenuous position in comparison to right field.
TAMPA, FL - MARCH 06: New York Yankees outfielders Aaron Judge (99) and Juan Soto (22) talk as they ... [+]
A six-time Gold Glove Award winning right fielder, Betts exudes athleticism and versatility. However, does it make sense to move a 31-year-old ball player who has played nearly 10,000 innings in the outfield over a decade to a rigorous defensive position such as shortstop? Betts shouldn’t be viewed as a super-utility ball player who is open to experimentation. Regardless of the noise, expect Betts to compete as if he is a Gold Glove-winning shortstop even though he has played 116 innings at the position over 18 ball games in his career as of Opening Day.
Judge has already achieved notoriety as being the biggest center fielder in major league history. However, there are legitimate concerns as to whether it is in the best interest of the 6-foot-7, 282-pound ball player regarding the physical demands of the position during his age-32 season and an extensive injury history. While the Yankees must be creative in terms of an outfield rotation that keeps Judge healthy and in the starting lineup for at least 145 ball games, it could be a short-term and costly endeavor given the status of Soto’s contract.
The expectation would be for Mookie Betts and Aaron Judge to perform at league-average levels defensively at second base and center field. However, both are perfectionists who will hold themselves to the same lofty standards as if they were playing right field. Can and should are two entirely different things when it comes to position changes for superstars with unparalleled leadership qualities. It introduces a bigger question as to whether the Los Angeles Dodgers and New York Yankees are asking too much of Betts and Judge while covering up flaws in roster construction. A calculated risk as both ball clubs can ill afford another disappointing season or postseason failure after spending more than $300 million on payroll.
