MLB PED Scandal – Biogenesis: Baseball’s version of Lehman Brothers

Posted by on June 5th, 2013

Baseball is considered by most to be America’s pastime. It’s as American as Apple pie and Ronald Reagan. Growing up, I remember week nights and weekends watching Yankee games with my dad and listening to Phil Rizzuto make exaggerated calls on WPIX, “WINFIELD WITH A DEEP FLY BALL TO LEFT FIELD….Caught by the shortstop.” Baseball has a place in almost everyone’s heart. Well at least it did until last night. The Biogenesis Scandal could turn out to be the straw that broke the camel’s back. It did for me. Granted this is not new news. This story initially broke at the start of spring training. However, that was the time for these guys to come clean; and they chose not to.

As a long time Yankee ticket holder, this is the end for me. I feel cheated like an investor in Lehman Brothers. Is that a little over the top? Maybe, but in the grand scheme of things I consider myself an investor in baseball. To all of the Major League Baseball team owners, don’t forget, your fans are your investors. We put our stock in your team and ride the highs and lows of every season. Will I ever go back to Yankee Stadium? Of course I will. But I want an apology first.

Over the years, I couldn’t tell you how much money I’ve spent on Yankees gear. That A-Rod jersey is looking like a pretty sound investment these days. Maybe my fellow fans and I should reach out to Irving Picard to see if we can get some of our “investments” back.

Let this be a lesson to CEO’s, CFO’s and management teams of publicly traded companies; think of your investors as fans of your companies. They are putting their money where your mouth is. Should something negative arise around your company, the best policy is to be transparent with your investors. Keep them informed and up to date on how you are going to fix what happened.

Don’t let your stock certificate become their A-Rod jersey.