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Apparently No One at Highbridge Capital Played Baseball in Bud Selig's Backyard

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Despite the fact that there's been a slight hold up on the Einhorn/Mets deal, most recently supposedly thanks to JPMorgan, it seems likely to happen eventually, especially since Bud Selig has fond memories of Einhorn playing baseball in his backyard. Unfortunately, not every money manager grew up next door to Bud. For example, the baseball fans at Highbridge Capital Management.

Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington denied the Dodgers's request to use the financing from its preferred lender, Highbridge Principal Strategies, because a better loan was available—specifically, the financing MLB offered.

The Dodgers "not only failed to attempt to obtain unsecured financing, they refused to engage Baseball in negotiations," Gross wrote in his order. "Baseball is ready, anxious and able to provide unsecured financing and has committed to do whatever it takes to do just that."

Team attorneys have called that offer a "deal with the devil," but now tapping that financing appears to be the Dodgers's only option if the franchise intends to continue to field a squad.

Judge Blocks Dodgers From Tapping Hedge-Fund Loan [WSJ]

Also: Dodgers Ordered to Bargain With M.L.B. on a Loan [NYT]

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Bookie Confessional, Early Baseball Edition

Mike is my best baseball client. He bets three or four grand a night, spread out over the whole card. He can't possibly win over time. Sadly, such golden geese occasionally shit on the lawn. That's what Mike did Friday, when he called and asked me to give him another bookie's number. Nobody in particular—just anybody's. He wanted a second place to bet. Basically he was sitting at his regular table and asking the Maitre d' where ELSE he should go to dinner. I told him to call me back Saturday. Well, I fumed awhile, then it came to me. Mike had rarely talked to Faithful Assistant. I summoned Faithful Assistant and told him his dreams were about to come true: he was opening his own shop, with exactly one disposable cell phone, and exactly one very good customer. Turns out that wasn't Faithful Assistant's dream. His dream involves some newly single woman with expensive tastes: the weasel told me that if he was going to play this charade it was going to cost me a full 15% of Mike's losses on both phone numbers. I was outraged and we started negotiating and by the time we were done 15% had become 20%. After making a mental note never to negotiate with Faithful Assistant again, I picked up the phone to hire the new book's collection agent. Melody, a good customer's wife, asked me for a job a couple months back. I offered and she accepted this part-time gig as an audition. Mike had his new place to play, Faithful Assistant was angling for a raise to 30%, and I set up a Monday meeting with Melody to tell her how all this would go down. Melody was a quick study. Faithful Assistant was her boss-and-contact and she was supposed to pass by Mike's office every Tuesday afternoon to pay or collect. She wanted to know what to do if Mike didn't have the money. She was disappointed to learn she should do nothing, just call us. I don't think she wanted to break his legs, but I think she wanted to give him a serious telling off, preferably in front of people. Too bad—that's not the way it works. It's a non-issue anyway: Mike pays. Turns out the 20% I'm paying Faithful Assistant is money well spent: he quickly put together that Mike is betting the same teams with both our places. That might be the stupidest piece of betting I've ever laid my eyes on. He calls one number, bets the Yanks, then calls the second number and bets the Yanks again. His second price is almost always worse—how much worse, well, it depends on how greedy we feel. There is no logic to this—he ought to put his whole bet in at the first place he calls, or better yet call both joints for prices and put the bet in at the shop with the better price. (Faithful Assistant is routinely varying prices on the Mike Phone by a penny or two anyway.) The only way Mike's current plan would make sense is if Mike was putting in maximum sized bets and needed to get down two max bets whatever the cost – but that's not happening: Mike's just putting down a few hundred at each place. Aspiring MBA-er Faithful Assistant says that Mike is trying to spread out his “credit risk," so that if one shop goes bust owing him money, he still has the other. Our shenanigans aside, that helps Mike little: If you think your bookie can't pay, don't spread out your risk—just stop calling him and find someone else you're actually comfortable with. It's a bookie joint, not a bank. So we were a little surprised about this but the final shock was Melody's. Melody showed up on Tuesday at Mike's office to pick up $600. She won't have to bother going downtown anymore: She knows “Mike” well: their kids are best friends since they've been neighbors for nine years.

Former Major League Baseball Union Rep Is Sickened By Wall Street Pay

Last month, Rochedale analyst Dick Bové sent out a note to clients that began with what he dubbed "some interesting stats." Said stats were salaries of the New York Yankees' top infielders ("not including promotional deals"!) versus those of JPMorgan's Jamie Dimon, Wells Fargo's John Stumpf, Citigroup's Vikram Pandit, and Bank of America's Brian Moynihan. The baseball players' compensation totaled about $80 million, the CEOs' $65 million. Fair? Bové didn't think so, noting that while the talentless hacks in the Bronx have won but single World Series in the last 10 years, the banks run by the aforementioned CEOs "impact virtually every American household" (and if pressed to, could surely bring home at least a few Major League Baseball championships). "Clearly, society values the New York Yankees infield above that of the leaders of the banking industry even without a World Series ring,"  Bové concluded sarcastically, shouting "nailed it" at Mr. Giraffe. Obviously, Bové is of the mind that it's a crock how little these chief executives are paid considering all they do compared to noncontributing zeroes like Alex Rodriguez and Co. It's unclear if the former head of MLB's players' union caught Bové's riff or if not but last night he offered something of a rebuttal and, spoiler alert, he thinks Wall Street pay is bull shit. Appearing at the New York University School of Law on Tuesday night to discuss the 40th anniversary of the first baseball strike and the rise of the players' association, Marvin Miller, the 95-year-old former union head, spoke for 68 minutes and delivered a blistering criticism of corporate pay. He also said collusion by owners in the mid-1980s was worse than the Black Sox scandal in 1919 and claimed the first baseball commissioner, Kenesaw Mountain Landis, may have been a member of the Klu Klux Klan. "Let's take chief executive officers of important corporations, or the stock exchange or Wall Street firms," he said. "The typical way that compensation is set is for the board of directors, most of whom if not all of whom have been appointed directly by the CEO, decide what the CEO's salary should be, or they have a committee, a compensation committee composed of board members. "The first thing about that is that here you have a direct conflict of interest, because sitting on a board are executives of other corporations, and what they are doing is adding ammunition to their own quest for higher salaries. And it's such an obvious conflict of interest that it's awful. Of course they're going to vote for higher salaries." He said the directors are at fault because "they don't pay for it. It's paid for by stockholders, who have had no voice on what the salaries and compensation and perks of the chief executive should be." He then compared the system to baseball, where the average salary on opening day this year was $3.4 million and the Yankees' Alex Rodriguez topped players at $30 million. "There always has been and is a rule that no contract of a player is valid unless it is signed by the franchise owner or somebody designated by the franchise owner in his place," Miller said. "In other words, no salary is put on paper and becomes valid until the man who is going to pay for it, the owner of the franchise, has signed the contract. A better check and balance you can't find anywhere." According to Miller, "the more democratic thing is to require the approval of a majority of the stockholders." Whose Pay Is More Deserved: CEOs or Ball Players? [Real Time Economics] Marvin Miller Blasts Corporate Pay [AP] Earlier: Dick “Fire A-Rod” Bové: Underpaid Bank CEOs Should Seek Yankees Tryout