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Hello, Goodbye Baseball’s Franchise Shifts and the Expansion Fight in 1968 Anthony Giacalone

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Page 1: Minneapolis SABR -- Giacalone

Hello, GoodbyeBaseball’s Franchise

Shifts and the Expansion Fight in

1968

Anthony Giacalone

Page 2: Minneapolis SABR -- Giacalone

Charlie O. FinleyFinely and Kansas City Purchased team in December 1960 In Kansas City, Finley had a relatively poor

lease, attendance only in the mid-600,000s and the worst radio/TV contract in the majors

Tried to move team since 1961 1962 – AL rejects move to

Dallas-Ft. Worth 1963 – Rumored moves to

Oakland and Atlanta 1964 – AL rejects move to

Louisville and threatens expulsion if Finley doesn’t sign KC lease

1964 – Finley signs KC lease through 1967 season

Page 3: Minneapolis SABR -- Giacalone

Bill Bartholomay, CarpetbaggerBartholomay and Braves Like Finley, a Chicago insurance magnate Headed consortium that purchased Braves in 1962 Faced with debt from purchase, attendance of just

770,000 in 1962-1963 and radio/TV rights of only $400,000

Offered stock in team to Wisconsinites. Just 11% of offer sold

Wooed by San Diego, Indianapolis, Dallas, Toronto and Seattle

Moved the Braves to Atlanta, but had to wait until the 1966 season

Milwaukee group headed by Allan (Bud) Selig apply to replace Braves with a N.L. expansion team

Milwaukee County and Wisconsin filed anti-trust suit to retain the Braves, which was later dismissed on a technicality

Page 4: Minneapolis SABR -- Giacalone

“He’s sensible to keep his mouth shut.”

Asked the A.L. for permission to move to Oakland at Chicago meeting in October

Presented a management consultant’s report comparing the Kansas City, Oakland and Seattle markets.

The final decision on Finley’s destination would lay with the other American League owners.

Finley’s Endgame in 1967 Ken Harrelson: “The situation is explosive, and

something’s going to happen.” Selig’s Milwaukee group refused Finley’s offer

a 49% ownership stake in the A’s. Finley attended opening event of Oakland

Coliseum opening event and purchased season-tickets to AFL’s Raiders 1966 season.

Worked out agreements with both Seattle and Oakland

Page 5: Minneapolis SABR -- Giacalone

“The Stabbing Wound”American League Resentment Felt N.L. had stymied their desires

for years Day one: August 1967 interleague

meeting: new TV contract and decided to create a joint committee to study expansion.

Day two: Divisional play proposal produced “the most heated meeting in the history of the majors.”

N. L. didn’t discuss the project, needed more deliberate study A.L. passed the proposal unanimously and wanted it implemented for

1968 The A.L.’s resolve “came as a complete surprise” and N.L. dug in their

heels. A row ensued that “appalled” even some of the participants. Fed up with the “Nationals’ smugness,” the A.L. left the meeting feeling

that they needed to make unilateral changes.

Page 6: Minneapolis SABR -- Giacalone

“Oakland is the luckiest city since Hiroshima.”

American League Expands At the October 18, Finley made

the case for moving his franchise to Oakland– Had lost $4 million since 1960– Would likely have to declare

bankruptcy if he stayed in K.C.– Consulting firm thought that Oakland

was the best available market. K.C. again warned the league

that they would “oppose and promise of an expansion franchise at some future date.”

Baltimore’s objected, but A.L. voted 7-3 on second ballot to allow Finley to move to Oakland

Page 7: Minneapolis SABR -- Giacalone

The American League’s “Premature Expansion”

Other half of the walnut The N.L.’s stand against divisional

play led A.L. to believe that to get divisional play, they needed expansion.

Finley’s move justified expansion Kansas City, Seattle and even

Dallas were invited to October 18 meeting to present their cases

Some owners believed that the league should move in conjunction with the N.L At 10:30 p.m. the A.L. announced a compromise to give expansion

franchises to Seattle and Kansas City for operation “as soon as practicable, and no later than 1971.”

Allowed time for N. L. to accept the fait accompli and expand too

Page 8: Minneapolis SABR -- Giacalone

The Midnight MeetingSymington “hits the ceiling” K.C. warned A. L. several times that

they wouldn’t accept no baseball for three years

Furious US Senator Stuart Symington issued a “veiled threat” as he stormed out

K.C. mayor begin preparing injunctions for the next morning

Proposed sports complex needed signed lease within six months or no stadiumCronin in Crisis

Cronin “reconvenes” A. L. meeting just before midnight

No quorum – only Boston, California, Cleveland, Detroit and New York represented – and “tense, angry atmosphere.”

Promised the Seattle and Kansas City A.L. to “take all action within its power” to select ownership for K.C. by March 1, 1968 and field teams for the 1969 season.

Page 9: Minneapolis SABR -- Giacalone

Kansas City RoyalsThe Royals Way Most successful of the 1969 expansion

teams. A.L. unanimously chose Ewing

Kauffman, 51-year old, pharmaceuticals millionaire

Assemble the best possible men to run the franchise

Vowed that “Kansas City will never lose this team.”

Hired Cedric Tallis, Joe Gordon, Charlie Metro and Lou Gorman

Hired 15 scouts, who selected more than 55 players in the June draft and signed nearly 30 of them within a month.

Page 10: Minneapolis SABR -- Giacalone

Seattle PilotsNo Stadium, No Team Ownership team: Dewey and Max

Soriano and former Cleveland executive William Daley

No suitable major league stadium Franchise contingent upon passage

of February 1968 $40 million bond issue

Failed in 1960 & 1966 to get necessary 60% on ballot

Passed with 62.5% No scouts until after vote, only 4 by

draft Drafted fewer players than any other

team, a bad omen. Billy Martin widely rumored to be

manager

Page 11: Minneapolis SABR -- Giacalone

A. L. Divisional Play and Playoffs for 1969

Franchise Fee New franchises pay about $6 million for

players, franchise fee and pension contributions

No share of TV revenue until 1972 Most “liberal draft ever.”New Divisional Alignment Cronin: “You can’t sell a 12th-place

team!” Two 6-team divisions, 156-game

schedule Passed 7-3 in October 1967, finalized in

March 1968 Both expansion teams in Western

Division Chicago and Minnesota objectedBest three-of-five round of playoffs No change to existing TV contract Put the National League in a bind

Page 12: Minneapolis SABR -- Giacalone

“More of an ambush than a simple maneuver.”

National League “miffed, hurt and surprised” by American League’s “premature expansion.” “Ambush” gave A.L. control or share of

the West Coast’s three largest markets. Stole highly-coveted Seattle market Put viability of N.L.’s San Francisco Giants

(which had lost 350,000 fans over the past two years) in jeopardy.

A.L. had technically violated at least two of major league baseball rules

Walter O’Malley away on safari. Giles refused to commit his league to any

immediate action: “I firmly believe that expansion should…take baseball into areas not now privileged to enjoy it…where it will serve the over-all purpose of the country best.”

Page 13: Minneapolis SABR -- Giacalone

National League Considers its Options

N.L. still wants Seattle Technical violations of rules Giles to Cronin: We still want

Seattle. Bavasi to head an N.L. Seattle

team? N.L. proposed taking Kansas City

and Seattle while A.L. would get teams in Milwaukee and Dallas

In November meeting, N.L. decides not to fight over SeattleN.L.: “It is not mandatory that we expand.”

Giles believed “expansion is inevitable,” but favored expanding in “orderly manner,” not going off “half-cocked.”

Giles: “Donald Grant: “The question is no longer whether we’ll expand – but when.”

At Winter Meetings, N.L. votes to expand by 1971, perhaps sooner

Page 14: Minneapolis SABR -- Giacalone

N.L.: “The status appears to be quo.”

N.L. required unanimity Majority of owners favored immediate

expansion Biggest backers were O’Malley, Stoneham and

Busch

Holdouts P.K. Wrigley (CHN)

– Won over in January John Galbraith (PIT)

– Placed on N.L. expansion committee Roy Hofheinz (HOU)

– Placed on N.L. expansion committee Bob Carpenter (PHI)

– “Dead set against it now.”

Situation lingered into the 1968 season N.L. owner: “We’re completely up in the air.”

Page 15: Minneapolis SABR -- Giacalone

A third-league solution?Movement for a third league gained steam Three eight-team leagues starting in 1970 Keep original rivalries Original leagues, plus one league all 1961,

1962 and 1969 expansion teams Interleague play Schedule: 154-games Supported by Sporting News, several

writers and announcers, even P.K. Wrigley John Fetzer (DET): “Feeling that there was

nobody, but nobody in the National League who was going to give up his N.L. franchise to become part of some unknown eight-team organization.”

Page 16: Minneapolis SABR -- Giacalone

N.L. decides to expand for 1969April 1968: National League decides on immediate expansion Contingent on unanimous

agreement on new franchises Still strong sentiment against

divisional play

Franchise Fee New franchises pay about $12.5

million– Players – $6 million– Franchise fee – $4 million– Escrow for working capital – $2.5– Half share of TV but would go to league

for central fund Agree to A.L.’s “liberal draft”

format Costs sent potential franchisees

scurrying

Page 17: Minneapolis SABR -- Giacalone

“It’s a long-range decision we must make.”

The Unanimity Trap Crucial factor in N.L. expansion Unanimity required to get all

owners to agree on franchises Guaranteed that any one

owner could deny an applicant

Factors in decision Major league ready stadium or

assurances that a stadium will be built soon

Geographical balance Experienced baseball men

involved Toronto, New Orleans and Denver never really considered Five candidates: San Diego, Milwaukee, Dallas-Fort Worth, Buffalo and

Montreal

Page 18: Minneapolis SABR -- Giacalone

San Diego: We’ll “knock some eyes

out.”Assets Size: metro area of 1.32 million, 15th-ranked

market 50,000-seat, $27 million facility opened in Fall

1967 Backed by O’Malley and Stoneham Strong favorite to win franchise

C. Arnholt Smith Banker-industrialist-hotelier Ran PCL’s San Diego Padres since 1956 Aides prepared a $3.3 million per year, 3-year

radio-TV package

Buzzie Bavasi Mentored by Larry MacPhail, Branch Rickey and

Walter O’Malley Worked for Dodgers 1938-1968, GM from 1951-

1968 Full control of Padres operation

Page 19: Minneapolis SABR -- Giacalone

Milwaukee: “Just crying for baseball here.”Assets

Metro area of 1.39 million Stadium built in 1953, seats 45,000 to be

expanded to 55,000 Led majors in attendance every year from

1953-58 Generous rent and concession rights Drew 50,000+ for 1967 exhibition and well

for 10 White Sox games in 1968 Schlitz radio-TV package of $1.1 million per

year Selig waiting for expansion, refused to steal

a team

But . . . “All wounds have not healed” from anti-trust

suits by Milwaukee and Wisconsin Might be admitting a mistake in letting

Braves leave

Page 20: Minneapolis SABR -- Giacalone

Dallas – Fort Worth: “Everyone else is with us.”

Assets Size: metro area of 1.54 million, 12th-

ranked market Backed by Lamar Hunt’s millions Stadium built in 1965, expandable to

50,000 in 10 months A natural rival for and potentially a better

market than Houston

In the business of “sports entertainment.” Astros had $1.8 million radio-TV package, largest in majors, with rights throughout Texas, Oklahoma, Louisiana

Highest rent of any team Dallas groups was “strangely apathetic” about

negotiating a deal with Hofheinz

Roy Hofheinz Member of N.L. expansion

committee

Page 21: Minneapolis SABR -- Giacalone

Buffalo: “It just wouldn’t make sense to

turn it down.”Assets Group headed by former-Reds

owner Bill DeWitt Strong television market Metro area of 1.33 million Expected to draw from Toronto

area of 2,000,000 War Memorial Stadium, 43,000-

seats Funds for $50 million domed

stadiumProblems Riots in War Memorial Stadium during 1967 forced weeknight games to

Niagara Falls No preparation begun for new park & no suitable current park S.F. columnist quipped: “Buffalo is known as the armpit, of the East,

although that seems to be an unnecessarily limited title.” Leonard Koppett: “Hopes rested on a decision to delay.”

Page 22: Minneapolis SABR -- Giacalone

Montreal:“We’re not infringing upon

anybody’s rights.”Assets Metro area of 2.43 million, 8th in N.

Amer. Ownership headed by Jean-Louis

Levesque and Charles Bronfman Success of Expo 67, new subway,

candidate for 1976 Olympics Mayor promised domed stadium by

1971 City council could finance projects

without voters “It’s a new territory.”Drawbacks

No professional baseball since 1959 American political pressure Unsteady ownership group No guarantee of stadium and much city debt

Page 23: Minneapolis SABR -- Giacalone

“Liable to come out with something nobody in the world

expects.”June 8, 1968 – N.L. adds San Diego and Montreal After 16-18 secret ballots, decision at 9 pm Didn’t want teams in same section of

country Montreal accepted first Dallas was never in the running, so San

Diego Buffalo allegedly had nine votes but not SF Milwaukee started slowly, eventually got 8 of

10

National League motives Stoneham: “Expansion is our only defense.” Koppett: “Standard procedure on every

question is to trade votes.” Wrigley detected bitterness toward

Milwaukee over litigation Open secret that Dallas was doomed from

start

In Mid-Summer 1968, worked out compromise with A.L over divisional play Added divisions; best 3-of-5 play L. C. S; and N. L. got 162-game schedule

Page 24: Minneapolis SABR -- Giacalone

San Diego: “It’s going to be a difficult job.”

San Diego Padres Kept name that had been minor league

moniker since 1936 Bavasi: “I wavered when I heard the

amount of money. We were frankly staggered by the price . . . It’s going to be a long, hard pull.”

City gave team $2 million to defray higher-than-expected franchise fee.

Bavasi: “Like Gen. Custer said, the big problem is scouting. The American League is months ahead of us. We’re starting from scratch.”

Bavasi: “When Rickey went to Pittsburgh, he put in a five year program. At the end of the fifth year, Pittsburgh was in last place.”

At the end of 1973, San Diego was in last place.

Page 25: Minneapolis SABR -- Giacalone

Montreal: “We could make Mets look like the best-organized team

in the world.”Montreal Expos Took name from successful Expo 67 Bidders were “flabbergasted” at winning. Stadium “hasn’t even been imagined – there

are no plans . . .” and city “hedging on stadium” funding.

Not even a skeleton organization and some investors refused put in any money until stadium approved

Investors who thought that they had signed on for $8 million but now $12-13 million, plus exchange rate, started to fall out

Autostade lease much higher than thought Chicago Tribune on Aug. 7 reported that Montreal’s “franchise will be forfeited.”

At 11th hour, Giles and Bowie Kuhn “find” Jarry Park On Aug. 15, N.L. accepts Montreal’s 10% down-payment and John

McHale named club president

Page 26: Minneapolis SABR -- Giacalone

Buffalo: “Maybe we’ll put an ad in the paper.”

Robert Swados Reacted to announcement with “despair

and disgust.” “We thought we were in. I was dumfounded

– I couldn’t believe my ears.” “I’m sure that our image hurt us.” “If there’s a club available we’re in the

market now.” Local commentator: “They were too honest,

too aboveboard. They didn’t realize the National League is run more like a club than a business, and if you want it you’ve got to play a very tough game of politics.”

Almost got Montreal’s franchise in August 1968 with John McHale set to take over reins

Page 27: Minneapolis SABR -- Giacalone

Dallas: “Noticeably bitter.”

Expanded Arlington Stadium to lure a team Bob Short moved Washington Senators to

Dallas-Fort Worth for 1972 season Worse than all four expansion teams in

1972-1973

Dallas Representatives Joked before meeting: “We’ll have a league

with 12 of these 14 – Dallas-Ft. Worth, San Diego, Denver, Milwaukee, Buffalo, Toronto, Montreal, New Orleans, Miami, Honolulu, Louisville, Portland, Mexico City and Phoenix.”

After the meeting, they suggested that they’d begin pursuit of an A.L. team that Hofneinz couldn’t block.

Dallas Times-Herald: “You hear rumors that Cleveland might be purchased and for some less than the $10 million tag.”

Page 28: Minneapolis SABR -- Giacalone

Milwaukee: “We’ll have to steal one to get it.”

Bitterness Judge Cannon: “Had the two Texas cities, of

even Buffalo, got the spot, we’d have no hard feelings, but we just can’t accept this decision on Montreal.”

Milwaukee board: “Our only chance now is with an American League team, and we’ll have to steal one to get it. We’ve treated them like gentlemen, and we’ve been unsuccessful. I never expected the National League to go along with us.”

Selig: “It’s hard to say just what we'll do now, but we’re young, we're resilient . . . We’ll back.”

Fan in County Stadium bleachers during White Sox game: “NL owners: Our revenge will be sweet!”

Page 29: Minneapolis SABR -- Giacalone

“It’s a shame what we’ve done . . .”

Congress Seven Congressmen protested N. L. decision Cabell, TX: “Our national game has now become

the monopolistic province of a few profit-hungry, selfish men.”

Wisconsin representatives pushed for action on bill to remove anti-trust exemption

Dick Kaegel: “Federal probing into the game is one thing

that makes the club owners edgy. Maybe expansion isn’t finished after all.”

Regrets A.L. owner: “The clinker in our whole

league is going to be Oakland before we get through.”

Sporting News: “There is some regret among A. L. owners that they submitted to Finley’s pressure and allowed him to move, forcing premature expansion.”