Sports MLB sues insurance providers, cites billions in virus losses

05:00  05 december  2020
05:00  05 december  2020 Source:   msn.com

These Reading Apps Will Ensure Your Favorite Books Are Always With You

  These Reading Apps Will Ensure Your Favorite Books Are Always With You And most are free.

Fifteen minor league baseball teams have filed a lawsuit alleging breach of contract by insurance providers after being denied claims for business -interruption insurance due to the coronavirus pandemic. Teams say providers are citing two reasons for denying claims — because losses are

With the insurance industry’s collective surplus hovering around 0 billion The potential downfall of the insurance industry isn’t stopping companies across the country from demanding payment. They insisted that the virus attached itself to property making it unsafe for the general public to enter

Major League Baseball and all 30 of its teams are suing their insurance providers, citing billions of dollars in losses during the 2020 season played almost entirely without fans due to the coronavirus pandemic.

a city at night © Provided by The Canadian Press

The suit, filed in October in California Superior Court in Alameda County, was obtained Friday by The Associated Press. It says providers AIG, Factory Mutual and Interstate Fire and Casualty Company have refused to pay claims made by MLB despite the league's “all-risk” policy purchases.

The league claims to have lost billions of dollars on unsold tickets, hundreds of millions on concessions, tens of millions on parking and millions more on suites and luxury seat licenses, in-park merchandise sales and corporate sponsorships. It also cites over a billion dollars in local and national media losses, plus tens of millions in missed income for MLB Advanced Media. It says all of those losses should be covered by their policies.

How to fix MLB's slow-paced offseason

  How to fix MLB's slow-paced offseason Welcome to Major League Baseball's offseason where nothing happens for months as teams play what looks like a perpetual game of chicken with free agents and each other. Compare this to the wild flurry of activity that came almost the moment the NBA kicked off free agency. This has been true for several years. Bryce Harper and Manny Machado - two players who should have been the most coveted of their era - took until February 2019 to sign massive deals. Part of that is undoubtedly on front office reluctance, and part is on players and their agents looking to maximize future earnings.

The coronavirus outbreak has closed suppliers in China, but insurance policies meant to protect companies from business interruptions probably won’t cover the losses .Credit Noel Celis/Agence France-Presse — Getty Images.

At least six separate complaints demanding a jury trial have been filed against Allianz (ALIZF) in the Southern District of New York since July. Its retirement plans, which provide pensions for people employed by insurers in its network, lost more than billion in the Allianz funds.

MLB cut short spring training and postponed the start of its regular season in March, then began a truncated schedule in late July during which fans were barred from stadiums. Teams were limited to 60 regular-season games, down from 162.

Most post-season games were played without fans, though there was limited capacity of about 11,000 per game for the National League Championship Series and World Series at Arlington, Texas.

“Due to COVID-19, the Major League Baseball entities, including those of the 30 major league clubs, have incurred significant financial losses as a result of our inability to play games, host fans and otherwise conduct normal business operations during much of the 2020 season," the league said in a statement to the AP. "We strongly believe these losses are covered in full by our insurance policies, and are confident that the court and jury will agree.”

Opinion: Years after Cubs' manipulation, Kris Bryant saga shows need for MLB overhaul

  Opinion: Years after Cubs' manipulation, Kris Bryant saga shows need for MLB overhaul The Chicago Cubs manipulated Kris Bryant's service time years ago, and now the 2016 NL MVP faces a crucial offseason.One year from now, Major League Baseball’s collective bargaining agreement will expire.

Wearing a striped shirt and Matrix-style dark glasses, Onel de Guzman stared at the floor as he made his way through a crowd of photographers into a hastily arranged press conference in Quezon City, a suburb of the Philippines capital Manila.

But because business -interruption insurance typically covers losses related to physical damage, such as from fire or flood, insurance companies It’s a strategic start: Unlike many business -interruption insurance policies, which contain virus -exclusion clauses widely implemented after the outbreak of

Messages seeking comment were not immediately returned by the insurance providers.

Over 1,400 lawsuits have been brought against insurance companies regarding business interruptions claims related to the pandemic, according to data compiled by the University of Pennsylvania Carey Law School. That includes several similar suits by minor league baseball teams, whose season was wiped out completely when baseball Commissioner Rob Manfred cancelled it.

At least one of those minor league cases, filed in Arizona and led by the Chattanooga Lookouts, has already been dismissed due to a virus exclusion in the policy.

Insurers in many cases have insisted that financial losses caused by the coronavirus do not constitute physical loss or property damage. MLB is claiming the virus has led to both.

“The presence of the coronavirus and COVID-19, including but not limited to coronavirus droplets or nuclei on solid surfaces and in the air at insured property, has caused and will continue to cause direct physical damage to physical property and ambient air at the premises,” the suit says. “Coronavirus, a physical substance, has attached and adhered to Plaintiffs’ property and by doing so, altered that property. Such presence has also directly resulted in loss of use of those facilities.”

Many teams have laid off front office employees in response to the pandemic, and many are predicting a slow off-season for players in free agency. Several clubs have already cut loose high-level players as a way to save money, including when the Cleveland Indians declined a $10 million club option on three-time All-Star Brad Hand and the Chicago Cubs failed to offer a contract to popular slugger Kyle Schwarber, allowing the 2016 World Series champion to become a free agent.

MLB has not said whether 2021 spring training or the season will start on time.


Follow Jake Seiner: https://twitter.com/Jake_Seiner


More AP MLB: https://apnews.com/MLB and https://twitter.com/AP_Sports

Jake Seiner, The Associated Press

Report: Blue Jays, Rangers join pursuit of Sugano .
The Toronto Blue Jays and Texas Rangers have expressed interest in recently posted Japanese right-hander Tomoyuki Sugano, according to Jeff Passan of ESPN. The New York Yankees and San Francisco Giants were tied to Sugano earlier in the offseason, as were the Boston Red Sox and San Diego Padres. While free agency has been slow to develop, the pitching market has been active, particularly when it comes to mid-tier hurlers. Charlie Morton, Mike Minor, Drew Smyly, and Robbie Ray have all landed deals so far.Sugano, posted by the Yomiuri Giants, has until Jan. 7 to reach a deal with an MLB club, or he will return to NPB.

usr: 0
This is interesting!