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MLB To Sue Insurers Over Billions of Dollars Lost

If you thought the freefall from the COVID-19 season was over, then you’re absolutely wrong. After what was a messy season full of postponed games and weird playoffs, MLB now needs to tie up the economic ends. The only issue is that with no fans, there’s no revenue from their stadium to look at for spending this offseason. With the general haziness around the handling of season tickets for 2020 and the media, MLB will be suing their insurers over billions of lost dollars in revenues that were supposed to be insured.

What Does MLB Hope To Achieve?

The basis of this lawsuit is that the sport is suing over the lack of coverage due to these financial losses. These billions of dollars are crucial to the sport, and they believed this money would be covered this season when they agreed to have one. Their insurers have refused to pay for claims that were stated to be all-risk by MLB. With the hope of getting these losses covered, the sport can look to 2021 and having some fans in the stands to get some revenue generated and curb the hit to their wallets COVID-19 cost.

Less Money, More Problems For MLB

If MLB were to lose this lawsuit and not get their losses covered, this could cause a myriad of problems. Teams would be hard-pressed not to have fans in stands (which increases risk) and the number of games would have to be cut short again. This could cause another player-owner divide that could lead to a strike. The question marks and potential turmoil is why baseball is going to fight tooth and nail to recoup as much of the money as they can in order to have a better financial standing when they need to make decisions about the 2021 season.

MLB Players Are Reeling From the Financial Hit

The amount of quality talent on the market is incredible, but do you know why that is? Not because many quality players had expiring contracts, but because teams wanted to cut them to save cash. How does a star reliever like Brad Hand get cut for $10 million? Players are going to struggle to find work with these financial losses. This is all well-documented, but the non-tender deadline was just the freefall we all knew was coming.

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Main image credit: Embed from Getty Images

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