The MLB Giants confirmed last night that Managing General Partner & CEO Bill Neukom "will not return in that role for the 2012 season," according to a front-page piece by Mark Purdy of the SAN JOSE MERCURY NEWS. The Giants said that Neukom will retire from his role, effective Dec. 31, and be appointed Chair Emeritus for next season, while President & COO Larry Baer "will assume CEO duties." Sources indicated that Neukom "has been asked to step aside by the 10-member Executive Committee of the Giants' ownership group." The action is "believed to be the fallout from a series of disagreements with the committee during Neukom's three-year stewardship of the team." He apparently "made some financial decisions that alienated key members of the ownership group." Sources said that Neukom's falling out with the Exec Committee "began over how to spend the additional millions of dollars that flowed into team coffers after the World Series championship" last season. Neukom reportedly "believed that this was his money to spend as he saw fit -- and he did so, increasing payroll and buying new technology for the baseball department, among other expenditures." The Exec Committee, however, "wanted the money to be put in a 'rainy-day fund' for use in leaner times." While Baer "will serve as CEO, another member of the executive committee could possibly assume the managing general partner position." Purdy notes "likely candidates would include" Franklin Templeton Chair Charles Johnson, former Yahoo President Jeffrey Mallett and DC United Owner Will Chang, all Bay Area residents. Neukom is "expected to remain a minority investor-owner in the team" (SAN JOSE MERCURY NEWS, 9/15). But in S.F., Henry Schulman reports Neukom is "expected to sell his stake in the team to other investors." The Giants' top investors "were not upset over how Neukom spent the money, but rather that he did so without their consent" (S.F. CHRONICLE, 9/15).
BAY WINDOW? ESPN.com's Buster Olney on Twitter wrote Neukom's departure "could be important" for the A's, whose efforts to relocate to San Jose have been blocked by the Giants. Olney wrote, "Neukom has been regarded, by some baseball owners, as the single biggest roadblock in Oakland's effort to move to San Jose. ... From Oakland's perspective, the Neukom news is going to be viewed as an oasis of hope on an otherwise bleak horizon. Mirage? We'll see." He continued, "Neukom has been the most feared person for folks involved in this, because of his litigation background" (TWITTER.com, 9/14). In California, Lowell Cohn writes, "Neukom is a skilled lawyer and he has kept the A's out of San Jose. Will that change?" (Santa Rosa PRESS-DEMOCRAT, 9/15). But the MERCURY NEWS' Purdy notes the Giants' "stance regarding territorial rights to the South Bay is ... not likely to change because Baer has been at the forefront of trying to keep the A's from pursuing a new ballpark in San Jose" (SAN JOSE MERCURY NEWS, 9/15). Fox Sports' Ken Rosenthal said, “If Larry Baer is simply replacing Bill Neukom ... I would not expect their policy towards the A’s to change.” Rosenthal noted Baer has indicated that Silicon Valley is "our territory, it would diminish the value of our franchise if we let them go to San Jose, we have a lot of money coming to our team from these corporations there” (“MLB Tonight Live,” MLB Network, 9/14).
THE MINUTE IT'S GONE: In San Jose, Tim Kawakami wrote Neukom's less-than-three year tenure leading the Giants "was brief, but astoundingly successful: The first World Series title in SF history, the sellout streak, the ever-expanding power of the Giants’ brand." It is "hard to believe that the other owners, several of whom have larger stakes in the team, are upset by any of the baseball or payroll decisions that have come under the Neukom sway" (MERCURYNEWS.com, 9/14). The PRESS-DEMOCRAT's Cohn writes, "Call this unexpected, curious, startling. Neukom is one of those people who seem monumental, permanent, invulnerable" (Santa Rosa PRESS-DEMOCRAT, 9/15). But CSNBAYAREA.com's Mychael Urban wrote, "Neukom was the face of the Giants ownership. NOT the owner." He "didn't make every call regarding whom to sign or not." The ownership group "made those decisions together." Urban added, "The group, it appears, didn't like that the managing general partner seemed to revel in the appearances" (CSNBAYAREA.com, 9/14).
WHAT DOES THE FUTURE HOLD? CBSSPORTS.com's Evan Brunell wrote since Baer "worked right under Neukom and is expected to stay in power, the Giants shouldn't be adversely affected by the transition, although the executive committee's push to have the cash as a rainy-day fund instead of investing it back to the team in the hopes of keeping up competition as well as raising the quality of baseball operations' tools is a potential glimpse into a future San Francisco team run under tighter financial constraints" (CBSSPORTS.com, 9/14). In San Jose, Carl Steward wrote, "We’ll be discussing the repercussions of this development for weeks and months to come. Neukom appeared to be a steady hand at the helm after replacing Peter Magowan -- and let’s face it, they won the long-craved World Series crown during his three-year watch -- but the Giants have such a large ownership group, it’s hard to get a read on all the behind-closed-doors pulling and tugging" (MERCURYNEWS.com, 9/14).
