Giants Invalidate Their Territorial Rights Argument
by Ken Arneson
2011-12-04 12:23

Yesterday, the San Francisco Giants opened a Giants Dugout Store in the suburb of Walnut Creek. Why is this worthy of note? Well, take a look at where this store is:


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That’s deep in the center of Contra Costa County, one of only two counties that are, by MLB definition, the territory of the Oakland Athletics.

That in itself wouldn’t be such a big deal if the Giants were not also making the argument that letting the Oakland A’s move to San Jose is a violation of their territorial rights to Santa Clara County, and should therefore not be allowed.

This is not the first time the Giants have stepped on the A’s turf. When the Giants won the World Series in 2010, they paraded their trophy all around the Bay Area, including two cities in Contra Costa County: Walnut Creek and Richmond. But their parading did seem to carefully avoid any city in Alameda County.

Meanwhile, though, the Giants are still resisting the A’s move into “their” territory of San Jose:

  • They have created and funded a “grassroots” movement against the A’s stadium in San Jose, which just on Friday filed a lawsuit against the San Jose ballpark.
     
  • For similar reasons, they have enticed their own ballpark sponsor, AT&T, who happens to own a parcel of land needed to complete the San Jose ballpark, to flat out refuse to sell that parcel at any reasonable price, thereby forcing the city to engage in a complicated eminent domain procedure to get the parcel secured.
     
  • They have purchased San Jose’s minor league team, thereby doubling up on the “territorial rights” argument, and ensuring that a negotiation over compensation must be completed before the A’s can build their ballpark.
     

So what gives? Why are the Giants still behaving like territorial rights are sacred in “their” Santa Clara County, but like they don’t matter in the A’s Contra Costa County?

Perhaps the Giants Dugout Stores are a separate corporation from the Giants themselves, and are therefore not covered by the territorial rights, but if so, that’s just a legalese cover story. These two entities are tied at the hip. You know the Giants could have just said the word, and there would not have been a Giants Dugout Store in Walnut Creek.

So what’s really going on here? I can think of two explanations that make some sense. Either:

  1. A swap of Contra Costa County for Santa Clara County between the Giants and the A’s is a fait accomplit. There are t’s to cross and i’s to dot, but that’s eventually going to happen. Any resistance the Giants are showing now towards the A’s moving to San Jose is all about leverage: how much money will the Giants get in compensation for the loss of their territorial rights?

    One argument for this interpretation is that the A’s themselves haven’t complained one peep about this store, and they didn’t complain about the trophy parading, either. If there was no such tacit agreement, and I were the A’s, I’d be raising holy hell about the existence of this store.
     
    Or:

  2. The Giants have launched a full-out war against the A’s. They intend to do everything they can to force the A’s out of the Bay Area while they have the chance.

    In this scenario, the Walnut Creek Dugout Store is a beachhead to push the A’s out of town. They attack the A’s from the west as usual, and from this Dugout Store, they launch a propaganda campaign to weaken the A’s support from the east. And from the south, they employ every possible legal maneuver and manipulate every single sock puppet they can to prevent the A’s from moving to San Jose.

    The argument for this scenario is that this is the scenario that produces the best possible financial outcome for the Giants: the A’s leaving the Bay Area. The A’s would be stuck in the Coliseum with dwindling fan support and nowhere else to go but to some other metro area that can build a stadium for them. For the Giants shareholders to maximize the return on their investment, this is the optimal strategy to take.

In either case, though, the territorial rights argument is now over.

In the first scenario, it’s over because the Giants have given up. The Walnut Creek store is about launching a new marketing campaign to win over the new set of fans that they ‘acquire’ in exchange for the A’s moving to San Jose.

In the second scenario, then the Giants Dugout Store in Walnut Creek invalidates the whole “we just want the A’s to respect our territorial rights” argument as just bullshit. The Giants don’t really believe in, care about, or respect territorial rights at all. Instead, the Giants actually only care about pushing the A’s out of the Bay Area entirely. They want the whole Bay Area market to themselves, so they can make a lot more money when they eventually sell the team.

It was former A’s owner Walter Haas who let the Giants have Santa Clara County in the first place, when the Giants were trying to build a stadium down there themselves. He did that because Haas always had the bigger picture in mind: both sports and businesses do not just exist for profits alone; they are an essential part of the fabric of our communities. Anyone who walks on the UC Berkeley campus and sees the Haas name all over the place knows he believed that deeply. Capitalism works best when capitalists understand that their businesses aren’t islands unto themselves. When corporations live for profits and profits alone, you end up with people occupying Wall Street.

I’m hoping that Scenario #1 is closer to the truth than Scenario #2. It would be extremely disappointing if it wasn’t. Giants CEO Larry Baer was actually once a board member of one of the companies I helped found, and I had always respected him before. I’d like to think he, as a former Cal grad, is capable of a Haas-like vision that extends beyond just the corrosive idea that ‘maximizing shareholder value’ is the sole purpose of a corporation.

Normally, I’d just give the benefit of the doubt to the Giants, assume innocence until proven guilty, and that Scenario #1 is likely the truth. But doing so in this case requires me to believe facts not in evidence. It requires me to interpret the A’s silence as acceptance. The only facts that have been presented publicly involve the Giants aggressively moving against the A’s desires and interest, and the A’s just shutting up and taking it. I have no idea what is going on behind the scenes. So therefore, I don’t know quite how to interpret this.

The arguments are done, and the jury has the case. Is the Giants move into Walnut Creek a benign marketing play, or an act of malign selfish corporate greed? We anxiously await the verdict.

Comments: 4
1.   Chris Labarthe
2011-12-04 21:41
If we're going to deploy the Eastern Front metaphor, does that mean Lew Wolff = Stalin, with endless unsuccessful 5-year plans and starving his own peons out of existence?
2.   Mike Davie
2011-12-05 11:05
"He did that because Haas always had the bigger picture in mind: both sports and businesses do not just exist for profits alone; they are an essential part of the fabric of our communities. Anyone who walks on the UC Berkeley campus and sees the Haas name all over the place knows he believed that deeply. Capitalism works best when capitalists understand that their businesses aren’t islands unto themselves. When corporations live for profits and profits alone, you end up with people occupying Wall Street." That applies to Lew Wolff and San Jose as well.
3.   Ken Arneson
2011-12-05 12:56
Good point. Wolff has never been able to shake the reputation that's he's just all about the profits. That's an especially important skill to have in an area as liberal as the Bay Area, where people are especially sensitive to corporate greed. It's not a surprise that some of the biggest "Occupy" demonstrations outside of Wall Street have been in the Bay Area. I don't personally to the view that Wolff is all about profits. I do think he suffers from tunnel vision about real estate, though. And that makes him not realize that sometimes he misses the point that fans are making about him and the A's. He's flawed as an owner, but I think it's more because he's geeky than he's greedy.
4.   Geoff Avery
2011-12-06 16:46
I've driven by the sign in Walnut Creek advertising this store and was curious about the territorial rights, but hadn't heard anything about it. I'm glad to hear your theories. I don't like this acrimonious relationship. It's like two bickering parents. Growing up, I never imagined any rivalry between the two clubs. The Bay Area had two teams: an American League team and a National league team. They didn't play each other, except in championship scenarios, and everything was cool. Now I see hostility between the clubs and, to an extent, the fans. Everybody's choosing sides. All the territorial discussions, to my ears, come off as petty and greedy. This Giants franchise is acting very much like a bully, which is a poor reflection of San Francisco. The Bay Area continues to appear less and less of a community.
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