Thursday, June 19, 2003
MLB measures are far from a hit with bat makers
ESPN.com news services
Major League Baseball's new requirements for bat makers are driving small manufacturers such as Jim Anderson of Minneapolis -- well, batty.
Anderson, 34, whose bats have been used by major leaguers such as San Diego outfielder Mark Kotsay, has reason to worry about his business surviving after just one year.
MLB requires bat companies to pay an annual $10,000 administrative fee and purchase insurance. Anderson estimates that Major League Baseball's initial requirement for a $12 million insurance policy would result in a $65,000 premium annually, well out of his budget.
One of 48 accredited bat-makers last season, Anderson was prepared to expand his business this season, but the new regulations scuttled his plans. Only 14 companies are approved for this season.
Last Dec. 8, Anderson received a letter from MLB outlining the changes, and that he had until Jan. 15 to comply. That pushed aside plans to market his bats during spring training in Florida.
"I was ready to go to spring training," Anderson told the Star-Tribune of Minneapolis. "That kind of ticked me off. I would not have made this big of an investment to just go into this business."
His company, MaxBat, has made bats for amateur players in the Minneapolis area, and last year got his bats certified by MLB. He shipped some bats to San Diego after using a mutual acquaintance to contact Padres manager Bruce Bochy.
With the prospect of receiving more orders this season, Anderson partnered with a local company with computerized, high-speed lathes.
That's all on hold now.
Each major-league ticket explains on the back that the holder assumes all risks at games, which includes equipment that flies into the stands. That, according to MLB executive vice president of
operations Sandy Alderson, does not stop fans from pursuing litigation. That's why the league has imposed the new regulations this year.
"There's a potential liability on the part of everyone involved," Alderson told the Star-Tribune. "The purpose of the insurance requirement is to make sure the risks are taken responsibility for.
"The administrative fee was originally intended to help us defray the costs of inspecting bats, approving bats and for all the administrative work and testing."
The league is working on securing a group policy for bat-makers such as Anderson. Instead of purchasing $12 million in insurance, only $5 million might be needed. The league has not released a
final list of certified bat companies for this season because of pending insurance negotiations.
"With baseball operating under the antitrust exemption, there's nothing you can do. You have to roll with the punches,'' said Dave Cook, co-owner of the Hoosier Bat Co., which does business with
several players, including Doug Mientkiewicz and Matt Lawton.
"There's nothing I can do (but pay). I didn't know the insurance would be so astronomical."
The new requirements are easily met by the largest producer of major-league bats, Hillerich & Bradsby Co., maker of the Louisville Slugger since 1884. Dozens of Louisville Sluggers are in every
major-league clubhouse.
John Hillerich IV, CEO of Hillerich & Bradsby, has heard claims that his company is trying to squeeze out small-time bat-makers in order to maintain market dominance.
"There's no foundation to those claims,'' he said. "I understand that some are frustrated with the rules. We get frustrated with the major leagues at times, too, but they make the rules and we have to abide by them.
"We enjoy the competition. It is not in us to collude. We want to compete, and we want to compete by providing a better service. We can't play those games. It takes the eye off of making the better product."
Alderson is concerned about two things: the incentive to doctor a bat; and allowing anyone with a lathe to sculpt a bat and claim Barry Bonds can break records with it.
"There's a general concern about the competition in the marketplace, creating the greater likelihood of a bat being enhanced," Alderson said. "We have one ball manufacturer and that manufacturer has no incentive to alter the ball.
"(But) we don't have any interest in having one bat manufacturer. I think some competition is good. It makes all manufacturers produce the best product."
Anderson bristles at the suggestion that companies could doctor bats.
"I understand their feeling that they can't open it up to anybody," Anderson said, "but that is why they have an approval process for. They can check a bat and say it's approved or it is not approved."
Anderson, for now, is stuck watching most of his bats in local amateur leagues. He'll try to return to the majors next season if MLB arranges for manageable insurance.
"I have a wait-and-see attitude on this," he said. "Who's to say that next year, they say, 'Let's make (the premiums) $20,000 or $30,000.' I want to supply bats to major-league players. I want to
get in there because I know my bats are good.''
