HOW TO SERVE LEGAL PAPERS ON MAJOR LEAGUE BASEBALL

Major League Baseball

Undisputed Legal | Process Service

Between the legacy that players leave and the fervor of the sport, baseball has been almost deified as a sport.  This is even seen in the unwritten rules of the game with nevertheless dictates the sport its conventions. Although sports follow self-policed unspoken agreements, over the course of its history, Major League Baseball has developed its own set of unique unwritten rules. These unwritten rules come with added legitimacy since Major League Baseball makes all the rules in the sport in the first place. 

Understanding Major League Baseball is necessary to appreciate the dominance that the entity has over the game. Major League Baseball is an American professional baseball organization and the oldest to have major professional sports leagues (in the United States and Canada ). A total of thirty clubs play Baseball Major League: fifteen National League (NL) and fifteen American League teams (AL). 

The NL and AL were established respectively in 1876 and 1901 and from 1903 forward, both leagues collaborated with each other but were legally distinct until 2000 when they became a single organization, headed by the Commissioner of Baseball.   

[1.0] HOW DOES THE MLB WORK

Since 2021, the MLB has had thirty teams: twenty-nine in the U.S. and one in Canada. Baseball games are aired in North America and in many other countries via telephone, radio, and the Internet. 

The MLB is regulated by the Constitution of the Major League Baseball. Since its establishment in 1876, this document has experienced many iterations. The MLB employs and administers the umpiring crews of the sport and negotiates marketing, labor, and broadcast contracts under the leadership of the Commissioner of Baseball. 

MLB has a unique, sport-controlled connection with most elements of Minor League baseball. This was largely owing to the Federal Baseball Club vs National League which ruled that baseball was not international trade and therefore not subject to federal antitrust legislation. This decision was only marginally weakened in the following years. The weaker decision gave the club owners greater certainty and resulted in double-digit rates of value increase. 

The MLB’s dominance in sport was challenged with three noteworthy efforts to create rival legs in the late 1800s, including the short-lived Federal League from 1913 to 1915 and the failed Continental League in 1960.

[2.0] HOW DOES MLB MAKE MONEY 

[2.1] LICENSING

Licensing money is a major revenue stream for MLB. Baseball has partnerships with some of the largest sports brands, like Nike Inc. and New Era Cap Company to supply both players and spectators with legally branded clothing. MLB is not a public company and consequently is not mandated to publish detailed financial records and consequently, MLB does not publish the sales statistics of goods, although record sales of licensed MLB gear have been recorded in previous years. When teams have successful records, fans purchase more goods, especially when players with large names are traded, and when teams change jerseys.

Major League Baseball also has several dozen major sponsors: Bank of America Corp., MasterCard Inc., Apple Inc. et cetera. The naming rights of the stadium are also a significant contribution to sponsorship income. 

 

[2.2] REDISTRIBUTION OF REVENUE

In contrast to many other kinds of businesses, major League Baseball clubs take part in income-sharing, a mechanism that redistributes revenues from profitable to less lucrative teams in an effort to maintain competitive balance. The aim is to maintain the less affluent clubs on an equally competitive level with the richest teams capable of attracting the greatest and most costly players.

Under the collective agreement for 2017-2021, every club pays a portion of its net local income to a pool that is evenly split among each team. More profitable clubs pay more than they get back; less proficient clubs get more than they put in.

[3.0] MAJOR LEAGUE BASEBALL SUBSIDIARIES

  1. MAJOR LEAGUE BASEBALL PLAYERS ALUMNI ASSOCIATION, INC.

MLBPAA is a 501(c)3 non-profit organization founded in 1982 by former Washington senator Chuck Hinton to promote baseball gaming, collect donations for charities, and motivate and instruct young people through the use of positive portrayals of sports. It has also become a key location for retired MLB athletes to stay in touch and interact with players.

The MLBPAA was formed in Washington, on 12th May 1994. The business itself is a non-stock business type for Process Service purposes. A non-stock company is a corporation that does not have shareholders (such a business is considered a stock company.  However, a non-stock company usually includes members who represent the functional equivalent of shareholders in an equity company. Process Service may be rendered upon these members since officers of the corporation are authorized to accept Process Service. 

The MLPBAA retains an individual as a registered agent for Process Service; Thomas G Parisot. It must be noted that Process Service is to be rendered only to the registered agent or the authorized officers. This is because the MLPBAA has two subsidiaries of its own to help former players; the MLBPAA owns the for-profit organizations, MLAM (Major League Alumni Marketing) and MLAS (Major League Alumni Services) and Process Service should be clearly demarcated.

  1. Major League Alumni Marketing

MLAM was created to gain compensation for former players through endorsements and appearances while protecting the names and likenesses of the individuals. Players are able to sign a Player Pool Agreement, which is a pool of group licensing and other marketing monies that are annually divided equally among the members. MLAM is separated into two divisions:

  1. Legends Memorabilia Collection (LMC) is one of seven certified Major League genuine baseball memorabilia sellers. LMC emerged to fulfill a need, offering mementos from every live player who had played the game. Throughout the year, LMC conducts various exclusive signatures and a wide variety of players with Hall of Famers. In 2011 LMC supported more than a hundred Major League Ball Park lives auctions.
  2. Legends Entertainment Group (LEG) promotes athletes proactively via support agreements and personal appearances. Since 1999, the alumnae players have been paid over USD million (over half of which are non-Hall of Fame players)).
  1. Major League Alumni Services: MLAS strives to broaden membership programs including medical and pension benefits while providing services outside the non-profit framework for the direct benefit of MLBPAA members such as free heart and lung care for former players, courtesy of Deborah Hospital.
  1. MLB ADVANCED MEDIA

A limited partnership of the Major League Baseball (MLB) team owners headquartered in New York City, MLB Advanced Media is the League’s website and interactive business and receives Process Service independently. The business maintains the League’s official website and its thirty major league baseball team websites on MLB.com. The site provides news, information, statistics, and timetables, as well as live audio or video broadcasting of most games to subscribers. The business also hires reporters with one allocated to each club throughout the season and more general performances. BaseballChannel.tv and MLB Radio are both owned and operated by MLB Advanced Media.

MLBAM also operates and controls the Minor League Baseball websites, the YES Network (the New York Yankees’ television broadcaster), SportsNet New York City (the television broadcaster of the New York Mets.)The entity also supplied WWE Network, WatchESPN, ESPN3, HBO Now, and PGA Tour Live backend infrastructure

MLB Advanced Media is the multimedia division headquartered in New York City. This division is responsible for MLB.com and each of the websites of the thirty clubs. Its charter says that MLB Advanced Media has editorial independence from the league, but is subject to the same set of owners and income distribution scheme. MLB Productions is an equally organized arm of the league that focuses on video and traditional media. MLB also controls 67% of the MLB Network with the remaining 33% divided between various cable companies including DirecTV. It works from studios in Secaucus, New Jersey, and enjoys editorial independence.

  1. MAJOR LEAGUE BASEBALL PROPERTIES, INC 

The New York-based Major League Baseball Properties, Inc owns several high-end real estate properties in New York City and beyond. The entity is based in New York and is qualified for New York City Process Service. Furthermore, Major League Baseball Properties, Inc. MLBP controls the merchandising and licensing for all MLB teams in both the American and National Leagues. The company owns and manages properties as part of the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) Industry, considering that the corporate structure of MLBP spans twenty-four companies, although Process Service cannot be levied upon the wrong company. The company also controls affiliated entities and  Spring Training, Opening Day, All-Star Game events, Division Series, League Championship Series, World Series, and special programs.

MLBP ensures that all Major League Baseball organizations defend and enforce intellectual property rights against infringers and counterfeiters around the globe. The use of proper labels, hangtags, holograms, licensee identification, and other notifications on all licensed products and services is an essential part of MLBP regulation programs.

C. MAJOR LEAGUE ASSOCIATION OF BASEBALL PLAYERS (MLBPA)

The Major League Association of Baseball Players (MLBPA) is the collective bargaining agent for the numerous players of Major League Baseball.  The entity was formed in New York and became a labor union in 1966, rendering New York City Process Service to be applicable. Marvin Miller, an economist with the United Steel Workers of America, was chosen by the players to be the Association’s first executive director.

The Union negotiates wages, arbitrates complaints, guarantees the security of its players in the field, manages the MLB license, and distributes licensing income as its main business according to Process Service guidelines. Player agents are certified by the MLBPA. All players, coaches, managers, and trainers who have joined up the League are entitled to pay USD50  dues each day for members of the Association throughout the season. In 1966, MLBPA was formed and the first collective bargaining agreement was signed in 1968 with club owners.

  1. MAJOR LEAGUE BASEBALL TRUST

Major League Baseball Players Association is also responsible for the Major League Baseball Trust. The Major League Baseball Players Trust is also operating on behalf of its members as a 501(c)3 Charitable foundation according to Process Service requirements and supports the development of youth baseball as well as a wide variety of causes and projects, as directed by its Member players. Major League Baseball Trust is located in New York and is part of the Business, Professional, Labour, Political, and Similar Organizations Industry for the purpose of Process Service.

  1. MAJOR LEAGUE BASEBALL YOUTH FOUNDATION

The Major League Baseball Youth Foundation is a  subsidiary of  Major League Baseball  Group, with the initial Department of State filing having occurred on 13th April 2017 under California jurisdiction and adhering to New York City Process Service regulations. Major League Baseball Youth Foundation thus exists as a foreign not-for-profit corporation in New York and requires Process Service levied upon it accordingly. 

Most not-for-profit corporations are exempt from federal and state taxes, although this exemption is not automatic. Major League Baseball Foundation has been classified as a Charitable organization according to Process Service parameters and as such is exempt. When a 501(c)(3) non-profit organization is judged as to whether it is a private foundation, it is assumed to be a private foundation until it has established itself as a public charity. There are generally two methods for determining whether an organization qualifies as a public charity: [A.] the one-third support test or [B.]  the facts and circumstances test. The third option is for an organization to meet the requirements to be recognized as a public charity if it derives a substantial part of its revenue from activities that are related to the performance of the organization’s exempt purpose (such as, earned income).

Major League Baseball Youth Foundation retains its registered agent for Process Service as the Corporation. A foreign corporation can apply for authority to conduct activities in New York by filing an application) under section 1304 of the Not-for-Profit Corporation Law, signed and delivered to the Department of State with adherence to Process Service parameters. It should include the name of the foreign corporation.. the fictitious name the corporation agrees to use in the state, the jurisdiction and date of its incorporation, whether it would be a charitable corporation or non-charitable corporation is formed in this state; a statement of its purposes to be pursued in this state and of the activities which it proposes to conduct in this state; and a statement that it is authorized to conduct those activities in the jurisdiction of its incorporation in the county of the state. Further, there must be the designation of the secretary of state as the entity’s agent upon whom Process Service against it may be served and the post office address to which the secretary of state shall mail a copy of any Process Service against it served upon them.

  1. MAJOR LEAGUE BASEBALL ACES, LLC AND MAJOR LEAGUE BASEBALL SCOUTING BUREAU

The Major League Baseball Scouting Bureau is an organized scouting entity operating under the aegis of the Office of the Commissioner of Baseball. Based in Ontario, California, MLBSB’s endeavors include supplementing its Thirty Major League Baseball Clubs’ autonomous, proprietary amateur, and professional Scouting programs.  

Major League Baseball Aces, LLC and Major League Baseball Scouting Bureau are both subsidiaries of Major League Baseball, requiring individual Process Service to be levied upon them. Major League Baseball Aces, LLC was incorporated on 9th October 2018 as a foreign limited liability company.  The entity comes under Delaware jurisdiction, although incorporated in New York, and is thus eligible for New York City Process Service.   The entity retains a registered agent to deal with the New York City Process Service, to whom the Secretary of State is required to forward New York City Process Service upon receipt. The registered agent for Process Service for Major League Baseball Aces, LLC is Corporation Service Company.

MLB is the second richest professional sports league behind the National Football League. MLB also supervises Minor League Baseball, which includes lower-level club teams. MLB is jointly managing the International World Baseball Classic Tournament with the World Baseball Confederation

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Sources

1. Baseball’s first openly all-professional team was the Cincinnati Red Stockings, which were founded in 1869. Before that, some teams had secretly paid some players. The first few decades of professional baseball were characterized by rivalries between leagues and by players who often jumped from one team or league to another. The period before 1920 is known as the dead-ball era, during which players would rarely hit home runs. Professional baseball in the United States survived a conspiracy to fix the 1919 World Series, which came to be known as the Black Sox Scandal. The sport rose in popularity in the 1920s and survived potential downturns during the Great Depression and World War II. Shortly after the war, Jackie Robinson broke baseball’s color barrier.

2. The Commissioner of Baseball is the chief executive officer of Major League Baseball (MLB) and the associated Minor League Baseball (MiLB) – a constellation of leagues and clubs known as ‘organized baseball’.

3. McDaniel, RJ. ‘Demystifying the MLB Constitution (Part 1).’ The Hardball Times, tht.fangraphs.com/demystifying-the-mlb-constitution-part-1/. 

4. MLB Constitution means the Major League Constitution (which amended and superseded the Major League Agreement dated January 1, 1975, the Agreement in re Major Leagues Central Fund dated as of December 8, 1983, as amended, and the respective constitutions of the former American and National Leagues of Professional Baseball Clubs).

5. Federal Baseball Club v. National League, 259 U.S. 200 (1922): ‘the business is giving exhibitions of baseball, which are purely state affairs’; that is, that baseball was not interstate commerce for the purposes of the Sherman Act.

6. Federal Baseball Club v. National League, 259 U.S. 200 (1922): ‘the business is giving exhibitions of baseball, which are purely state affairs’; that is, that baseball was not interstate commerce for the purposes of the Sherman Act.

7. ‘Mets and the Citi: $400 Million for Stadium-Naming Rights Irks Some.’ CNN, Cable News Network, edition.cnn.com/2009/US/04/13/mets.ballpark/. 

8. The name of Mets’ Citi Field will add 400 million dollars over a period of 20 years, while Astros’ Minute Maid Park will add 170 million dollars over 28 years, and Twins’ Target Field will attract 125 million dollars over 25 years.

9. Business address

1631 MESA AVENUE SUITE D, COLORADO SPRINGS, CO, 80906

10. Mailing address

SAMUEL N. MOORE 5027 BACKLICK ROAD, ANNANDALE, VA, 22003

11. Principal Name

BROOKS ROBINSON

Principal Title

PRESIDENT

Principal Business address

NONE,

Principal Residence address

THE COLONNADE, 3801 CANTERBURY ROAD, APARTMENT 601, BALTIMORE, MD, 21218, United States

Principal Name

FRED VALENTINE

Principal Title

SECRETARY

Principal Business address

NONE,

Principal Residence address

4838 BLAGDEN AVENUE, N.W., WASHINGTON, DC, 20011, United States

Principal Name

SAMUEL N. MOORE

Principal Title

ASST. SEC.

Principal Business address

NONE,

Principal Residence address

5027 BACKLICK RD., ANNANDALE, VA, 22003, United States

12. Agent Name

THOMAS G. PARISOT

Agent Business address

41 CHURCH STREET, WATERBURY, CT, 06723, United States

Agent Residence address

110 APPLE HILL DRIVE, WATERBURY, CT, 06795, United States

13. Address

1271 Avenue OF The Americas

New York, NY, 10020-1300
United States

14. Phone

(212) 931-7800

15. 12 E 49TH St FL 24

New York, NY, 10017-8207
United States

16. Phone

(212) 826-0808

17. Name: THE CORPORATION

Address:245 PARK AVENUE, NEW YORK, NY, United States, 10167

18. Major League Baseball Scouting Bureau Address

245 Park Ave FL 34

New York, NY, 10167-0002
United States

19. Phone

(909) 980-1881

20. CORPORATION SERVICE COMPANY

Address: 251 LITTLE FALLS DRIVE

City: WILMINGTON County: New Castle

State: DE Postal Code: 19808

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