Last night we witnessed the triumph of existentialism, or should I say, Instantiation, in modern baseball, because the alleged two run home run hit by Alex Rodriguez NEVER ACTUALLY OCCURRED.

To understand this, first we must review the Home Run Rule in modern baseball, which was first defined in 1885, and was subsequently amended in 1892, 1914, 1920, 1926, 1931, 1950 and 1955.

The key concept of the home run rule is most plainly expressed in the 1892 rule which has not been changed very much since 1892:

A FAIR BATTED BALL THAT GOES OVER THE FENCE SHALL ENTITLE THE BATTER TO A HOME RUN…

The key concepts here are that

1) the ball has to be fair; and
2) the ball has to go “over the fence.”

The 1892 rule adds that “A distinctive line is to be marked on the fence showing the required point.” Meaning, if the ball goes over the fence above the line, it goes “over the fence.”

However, and this is the key point, the ball still has to go OVER the fence, not just ABOVE the line.

Last nite’s alleged home run by Alex Rodriquez, as a careful examination of the Rules of Baseball in this blog will demonstrate, was not a home run, but a Ground Rule Double.

It was a Ground Rule Double, because the ball never went OVER the Fence, as require plainly by the Rules of Baseball, but merely hit an object, which was in the field of play, above the line, but still in the field of play.

As to whether the ball would have, could have, or should have gone over the fence, but for the object, which was a TV camera, that is an interesting philosophical debate (which is the same as conceiving of unicorns, trolls, a planet without war and the tooth fairy), but the result is still the same: the home run remains an abstraction, something INSTANTIATED and given EXISTENCE only in the collective minds of the umpires.

You see the replay plainly on Fox TV. At no time did the ball go OVER the Fence. Moreover, the camera was jutting a good five to ten feet into the field. Even if the camera wasn’t there, the downward arc of the ball meant that the ball might have gone over the fence, or it might have continued its downward slope and hit the fence at a point BELOW the line of the fence.

Now, as a careful examination of the rules will show, similar disputes such as balls getting caught in the wiring of the ivy fences at Wrigley have always been rules as ground rule doubles. At no time have such balls ever been rules home runs, not in World Series and never on instant replay, because there has never been instant replay in the World Series or at any time in baseball.

I’m certainly pleased to see that baseball, not content with attempting to stop the Phillies from winning the World Series last year by calling a rain delay halt for the first time in World Series History when Cole Hamels was pitching a brilliant game in game five, this year, for the first time in World Series history called a fake home rum and foiled Cole Hamels again from winning.

Up to the point of the fake homer call, Hamels was pitching a no-hitter. It was obvious that Hamels was furious with the call. And rightly so. The call was utter and total BS, and proves that Bud Selig and Organized Baseball are determined to see that the Yankees win the World Series at all costs. The Umpiring crew rules so quickly that they must have been told by Selig how to rule. They didn’t have time to deliberate.

This is reminiscent of 1950, when the Yankees used their connections with the US Government to have Curt Simmons, a blazing lefthander with Sandy Koufax stuff, a twenty game winner, on the Phillies, get his draft notice in mid-September 1950, two weeks before the World Series was coming up with the Yanks. At the time, the Phils had Robin Roberts, now in the Hall of Fame, and Curt Simmons, a blazing lefthander, on their staff. The two pitchers had combined for more than fifty wins. The two pitchers could each have won two games in the series and blown out the Yanks, much like Curt Schilling and Randy Johnson won the 2001 Series for Arizona back a few years. But with Curt Simmons in the Army, the Phillies barely won the Pennant, and were eradicated by the Yanks in four games.

The Yankees always need to cheat to win.

Ok, so here are the Home Run Rules:

1885 – A fair batted ball that goes over the fence at a distance less than 210 feet from home base shall entitle the batsmen to two bases. A distinctive line shall be marked on the fence at this point.

My comment: At this point, a ball “over the fence” is not a homer at all, it’s a ground rule double. Weird.

1892 – A fair batted ball that goes over the fence shall entitle the batter to a home run; except that should it go over the fence at a distance less than 235 feeet from home base, the batter is entitled to only two bases. A distinctive line is to be marked on the fence showing the required point.

My comment: This is essentially the modern rule. The ball has to go “over” the “fence” to be a home run. And it has to go “over” the “distinctive line” of the “fence”. Not above, but over.

I think we all understand the difference between going near, above and around a line painted on a fence, and going over a fence. It’s the difference between a hurdler stumbling on the hurdle, and a hurdler clearing the hurdle entirely.

Rodriquez’ ball last nite, in Game 3 of the 2009 World Series, is not a home run under the Home Run Rule. It did not go “over the fence” or over the “distinctive line”, because in three dimensional space, it hit the camera before it crossed the plane of the line, and was knocked back into the field. Therefore, it never went over the line, never went over the wall, and never went over the fence.

Consequently, it was not a home run under the 1892 rule.

Are there any changes in the rules SINCE 1892 that could make it a home run? The answer is no, but let’s go through them all and see.

Note that this is not a “judgment call” by the umpires. The ball has to go “over the fence” and be a “fair ball” to be a home run. End of story. An umpire or group of umpires cannot make a ball that might have been or should have been a home run except that it hit something, into a home run by philosophical instantiation, or abstractive analysis.

In short, there are no unicorns, trolls or other imaginary beings just because we think there are; and there are no imaginary home runs. C.f. Occam’s razor—we don’t create a multiplicity of abstract universal beings just because we name them, think of them or create them in our minds. If we create now a class of abstract home runs, home runs that might have been, should have been and so forth, we now introduce into baseball a series of abstract balls, strikes, stolen bases, catches, hits and so forth and soon there will be entire parallel universes of baseball realities creeping into games, abstract realities which have nothing to do with what’s going on down at the field level, or, more pertinently, in the empirical world or in the rulebook. Everything will come down to what the umpires say and we’ll have a courtroom, not a ballgame.

1914 – Should an errant thrown ball remain in the meshes of a wire screen protecting the spectators, the runner or runners shall be entitled to two bases. The umpire in awarding such bases shall be governed by the position of the runner or runners at the time the throw is made.

My comment – this is the first indication that hitting a camera should be a ground rule double. Here the rule says if an errant thrown ball gets caught in wire screen mesh, the runner gets two bases and two bases only. It doesn’t matter if the ball is over the fence in fair ground, it’s still only two bases.

1920 – Home Run/Game-Ending – If a batsman, in the last half of the final inning of any game, hits a home run over the fence or into a stand, all runners on the bases at the time, as well as the batsman, shall be entitled to score, and in such event all bases must be touched in order, and the final score of the game shall be the total number of runs made.

My comment – this is the famous “walk off homer” rule change. Prior to 1920, if someone hit a walk off homer with one, two or three men on that won the game, the only runs that counted were the ones that won the game, e.g. if the score were 9-8 the road team, and you hit a grand slam, you got two runs, the score ended 10-9 home team, and you were credited with either a single or a double, usually a single. Not a grand slam. But under the walk-off rule, the score ended 12-9, the batter got credit for a homer, a grand slam and 4 RBI.

Note again that the rule says “over the fence” and “into the stand”. Rodriquez’ alleged homer last night meets neither of these key tests.

1926 – A fair batted ball that goes over the fence or into a stand shall entitle the batsman to a home run, unless it should pass out of the ground or into a stand at a distance less than 250 feet from the home base, in which case the batsman shall be entitled to two bases only. In either event the batsman must touch the bases in regular order. The point at which a fence or stand is less than 250 feet from the home base shall be plainly indicated by a white or black sign or mark for the umpire’s guidance.

My comment – again, the rule says “over the fence” or “into a stand” in order for a ball to be a home run. This changes the 1892 rule by making the minimum fence distance 250 feet for a home run instead of 235 feet in order not to have “cheap” home runs, although even 250 feet would be a pretty short distance. Of course, Yankee Stadium had a 297 foot right field porch for years for their left handed sluggers, another example of the Yankees “cheating”, and then they would have an all-lefthanded staff to keep the other team from stacking up lefties against them, c.f. Lefty Gomez, Whitey Ford, Andy Pettite, Ron Guidry and so forth. This unfair advantage has been wiped out with the new Yankee Stadium, although allegedly there remains a slightly easier job of hitting to right field.

1931 – Batter/Awarded Bases – A fair hit ball that bounds into a stand or over a fence shall be a two-base hit. Note: There is no reference to distance in this rule and any fair hit ball bounding over the fence or into the stand is a two-base hit.

My comment: This is the modern ground-rule double rule. It hasn’t changed at all. Most importantly, READ what it says. “A FAIR HIT BALL THAT BOUNDS INTO A STAND OR OVER A FENCE SHALL BE A TWO-BASE HIT.” That means that if the ball bounces off a camera and then over the fence, it’s a two base hit. If the ball bounces off a fan and over the fence, it’s a two base hit. If it bounces off the top of the Astrodome, and back into the field of play, as happened to Mike Schmidt in 1974, it’s a two base hit; but if it went off the top of the Astrodome and then over the fence, it would be a ground rule double according to the rule.

According to the plain language of the ground rule double rule of 1931, the ball A Rod hit last nite in game 3 of the World Series was a double. Not subject to review, not subject to judgment call. A ground rule double. It went off a camera and bounded over the fence and then back into the field. It was in play. It’s a ground rule double in that case.

In 1950 the rulebook was entirely recodified and rewritten, refined and clarified:

1950: Batter/Awarded Bases: Each runner including the batter-runner may, without liability of being put out, advance to home base, scoring a run, if a fair ball goes over the field fence in flight and he touch [sic] all bases legally; of if a fair ball which, in the umpire’s judgment, would have cleared the field fence in flight, is deflected by the act of a defensive player in throwing his glove, cap or any article of his apparel, the runner shall be awarded a home run.

My comment – to be a home run, the ball must go over the fence “in flight”. The only case where an umpire may exercise judgment and rule on whether a ball “would have cleared the field fence in flight” is solely and exclusively the case of when the ball is “deflected by the act of a defensive player in throwing his glove, cap or any article of his apparel”. This is the one and only situation where an umpire may exercise abstract judgment and award a hypothetical or abstract home run under the rules of baseball; where a fielder attempts to block the ball by throwing his glove, cap or article of his clothing at the ball.

This was not the case with A Rod’s home run last night. Jayson Werth did not throw his cap, his glove or any article of his clothing at the ball last night. Consequently, the ball would have had to clear the fence “in flight” to be a home run. Since the ball never cleared the fence “in flight”, it was not a home run under the 1950 rule, as amended.

More 1950 changes:

The batter becomes a baserunner when a fair ball, after touching the ground, bounds into the stands or passes through or under a fence or through or under shrubbery or vines on the field, in which case the batter and the baserunners shall be entitled to advance two bases.

The batter becomes a baserunner when any fair ball which, either before or striking the ground, passes through or under a fence or through or under a scoreboard or through or any opening in the fence or scoreboard or through or under shrubbery or vines on the fence, in which case the batter and the baserunners shall be entitled to two bases.
The batter becomes a baserunner when any bounding fair ball is deflected by the fielder into the stands or over or under a fence on fair or foul ground, in which case the batter and all baserunners shall be entitled to advance two bases.

The batter becomes a baserunner when any fair fly ball is defelected by the fielder into the stands or over the fence into foul territory, in which case the batter shall be entitled to advance to second base; but if deflected into the stands or over the fence in fair territory, the batter shall be entitled to a home run.

My comment – the first three rules make clear that deflections by the fielder and interference with the ball by objects on the field, such as vines, fences and shrubbery, are always ground rule doubles. The only case where a ball is NOT a ground rule double is when there is a deflection by the fielder, and for this to be a home run, there are four requirements;
1) a fair fly ball in fair territory;
2) deflected by a fielder;
3) into the stands; or
4) over the fence.

Note that even if argued analogically to last nites hit by A Rod, the 1950 rule does him no good. First, the camera deflected the ball back into the field. Second, the deflection was by a camera, not by a fielder. Third, the deflection was not “into the stands.” Fourth, the deflection was not “over the fence.”

Consequently, it’s really, really, really crystal clear that what we have is a ground rule double, under the remaining provisions of the 1950 and 1932 ground rule double rules. A Rod and the Yankees were only entitled to a ground rule double last nite in game 3 of the World Series.

1955 Rule Change

The 1955 rule change is very, very minor, it just provides that if a hitter hits a homer and has an accident while running the bases and time is called, he can have a runner come in and pinch run for him and run out the homer run and score it. It has no effect whatsoever on the discussion at hand.

Ok, through 1995, that’s all the rule changes I have from the source J. Thorn, P. Palmer, M. Gershman, D. Pietruskza, Total Baseball V: The Official Encyclopaedia of Major League Baseball (Viking NY 1997), c.f. D. Bingham & T. Heitz, “Rules and Scoring,” at pp. 2376-2432.

Now let’s hit the Net.

The rules as they exist through 1955 continue to exist and are codified in Official Rules of Baseball at Rule 6.09, exactly as they were enacted in 1950, see for yourself:

6.09 The batter becomes a runner when—
(a) He hits a fair ball;
(b) The third strike called by the umpire is not caught, providing (1) first base is unoccupied, or (2) first base is occupied with two out;
Rule 6.09(b) Comment: A batter who does not realize his situation on a third strike not caught, and who is not in the process of running to first base, shall be declared out once he leaves the dirt circle surrounding home plate.
(c) A fair ball, after having passed a fielder other than the pitcher, or after having been touched by a fielder, including the pitcher, shall touch an umpire or runner on fair territory;
(d) A fair ball passes over a fence or into the stands at a distance from home base of 250 feet or more. Such hit entitles the batter to a home run when he shall have touched all bases legally. A fair fly ball that passes out of the playing field at a point less than 250 feet from home base shall entitle the batter to advance to second base only;
(e) A fair ball, after touching the ground, bounds into the stands, or passes through, over or under a fence, or through or under a scoreboard, or through or under shrubbery, or vines on the fence, in which case the batter and the runners shall be entitled to advance two bases;
(f) Any fair ball which, either before or after touching the ground, passes through or under a fence, or through or under a scoreboard, or through any opening in the fence or scoreboard, or through or under shrubbery, or vines on the fence, or which sticks in a fence or scoreboard, in which case the batter and the runners shall be entitled to two bases;
(g) Any bounding fair ball is deflected by the fielder into the stands, or over or under a fence on fair or foul territory, in which case the batter and all runners shall be entitled to advance two bases;
(h) Any fair fly ball is deflected by the fielder into the stands, or over the fence into foul territory, in which case the batter shall be entitled to advance to second base; but if deflected into the stands or over the fence in fair territory, the batter shall be entitled to a home run. However, should such a fair fly be deflected at a point less than 250 feet from home plate, the batter shall be entitled to two bases only.

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/06_the_batter.pdf

the deflection by the fielder rule is also exactly the same as adopted in 1950 and has not been changed, and is codified in Rule 7.05(a);

7.05 Each runner including the batter-runner may, without liability to be put out, advance—
(a) To home base, scoring a run, if a fair ball goes out of the playing field in flight and he touched all bases legally; or if a fair ball which, in the umpire’s judgment, would have gone out of the playing field in flight, is deflected by the act of a fielder in throwing his glove, cap, or any article of his apparel;

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/07_the_runner.pdf

See? It’s exactly the same. The only way an upire can judge if the fair ball would have left the stadium and gone out of the playing field in flight, is if it was deflected by the act of a fielder under Rule 7.05(a).

The umpire can’t make a judgment call under any other of the rules of baseball.

All the rules of baseball, incidentally, are on line and available for you all to read for yourselves at;

http://mlb.mlb.com/mlb/official_info/official_rules/foreword.jsp

see also these websites:

http://www.baseball-almanac.com/rulemenu.shtml

http://www.rulesofbaseball.com/

http://en.wikipedia.org/wiki/Baseball_rules

There IS however, a rule which pertains to interference by media, and that is rule 3.15, which I hereby quote now:

3.15 No person shall be allowed on the playing field during a game except players and coaches in uniform, managers, news photographers authorized by the home team, umpires, officers of the law in uniform and watchmen or other employees of the home club. In case of unintentional interference with play by any person herein authorized to be on the playing field (except members of the offensive team participating in the game, or a coach in the coach’s box, or an umpire) the ball is alive and in play. If the interference is intentional, the ball shall be dead at the moment of the interference and the umpire shall impose such penalties as in his opinion will nullify the act of interference.

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/03_game_preliminaries.pdf

NOTE WHAT RULE 3.15 SAYS ABOUT INTERFERENCE WITH A BALL BY NEWSPHOTOGRAPHERS WHO ARE AUTHORIZED TO BE ON THE FIELD OF PLAY: In case of unintentional interference with play by any person herein authorized to be on the playing field (except members of the offensive team participating in the game, or a coach in the coach’s box, or an umpire) the ball is alive and in play.

Since A-Rod’s ball was UNINTENTIONALLY INTERFERED WITH BY A PRESS CAMERA, RULE 3.15 COMES INTO PLAY EXPRESSLY AND THE BALL IS IN PLAY. It’s not a case of fan interference where the umpires are allowed to make a judgment call to nullify the fan interference and create a home run abstractly.

To the contrary, the rule is clear and express- “the ball is in play” says the rule. Since the ball did not go over the fence or into the stands or over the fence in flight, but back to the field, and since Werth relayed it back, the Yankees runners were stuck at 2d and 3d.

There was no interference, and if there were a ground rule here, it was at best a ground rule double. See discussion above, supra.

NOTE THAT THIS IS AN ENTIRELY DIFFERENT SITUATION THAN IF A FAN HAD INTERFERED WITH THE BALL.

The Umps and all of major league baseball got the rules wrong last night.

The ball was alive and in play last night and/or was a ground rule double, under the ground rule double rules and also under official Rule 3.15.

The Umps had no interference discretion under rules 3.15 or 3.16 because NO FAN touched the ball—instead, an authorized member of the press touched the ball.

The camera was an authorized photographer.

Consequently, the ball was in play.

Note the difference if a spectator had touched the ball:

3.16 When there is spectator interference with any thrown or batted ball, the ball shall be dead at the moment of interference and the umpire shall impose such penalties as in his opinion will nullify the act of interference.
APPROVED RULING: If spectator interference clearly prevents a fielder from catching a fly ball, the umpire shall declare the batter out.

Rule 3.16 Comment: There is a difference between a ball which has been thrown or batted into the stands, touching a spectator thereby being out of play even though it rebounds onto the field and a spectator going onto the field or reaching over, under or through a barrier and touching a ball in play or touching or otherwise interfering with a player. In the latter case it is clearly intentional and shall be dealt with as intentional interference as in Rule 3.15. Batter and runners shall be placed where in the umpire’s judgment they would have been had the interference not occurred.
No interference shall be allowed when a fielder reaches over a fence, railing, rope or into a stand to catch a ball. He does so at his own risk. However, should a spectator reach out on the playing field side of such fence, railing or rope, and plainly prevent the fielder from catching the ball, then the batsman should be called out for the spectator’s interference.
Example: Runner on third base, one out and a batter hits a fly ball deep to the outfield (fair or foul). Spectator clearly interferes with the outfielder attempting to catch the fly ball. Umpire calls the batter out for spectator interference. Ball is dead at the time of the call. Umpire decides that because of the distance the ball was hit, the runner on third base would have scored after the catch if the fielder had caught the ball which was interfered with, therefore, the runner is permitted to score. This might not be the case if such fly ball was interfered with a short distance from home plate.

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/03_game_preliminaries.pdf

The ground rules for ground rule doubles are exactly the same as the 1950 and 1932 rules discussed above, and are codified at the official rules of baseball 7.05;

7.05 Each runner including the batter-runner may, without liability to be put out, advance—
(a) To home base, scoring a run, if a fair ball goes out of the playing field in flight and he touched all bases legally; or if a fair ball which, in the umpire’s judgment, would have gone out of the playing field in flight, is deflected by the act of a fielder in throwing his glove, cap, or any article of his apparel;
(b) Three bases, if a fielder deliberately touches a fair ball with his cap, mask or any part of his uniform detached from its proper place on his person. The ball is in play and the batter may advance to home base at his peril;
(c) Three bases, if a fielder deliberately throws his glove at and touches a fair ball. The ball is in play and the batter may advance to home base at his peril.
(d) Two bases, if a fielder deliberately touches a thrown ball with his cap, mask or any part of his uniform detached from its proper place on his person. The ball is in play;
(e) Two bases, if a fielder deliberately throws his glove at and touches a thrown ball. The ball is in play;
Rule 7.05(b) through 7.05(e) Comment: In applying (b-c-d-e) the umpire must rule that the thrown glove or detached cap or mask has touched the ball. There is no penalty if the ball is not touched.
Under (c-e) this penalty shall not be invoked against a fielder whose glove is carried off his hand by the force of a batted or thrown ball, or when his glove flies off his hand as he makes an obvious effort to make a legitimate catch.

(f) Two bases, if a fair ball bounces or is deflected into the stands outside the first or third base foul lines; or if it goes through or under a field fence, or through or under a scoreboard, or through or under shrubbery or vines on the fence; or if it sticks in such fence, scoreboard, shrubbery or vines;
(g) Two bases when, with no spectators on the playing field, a thrown ball goes into the stands, or into a bench (whether or not the ball rebounds into the field), or over or under or through a field fence, or on a slanting part of the screen above the backstop, or remains in the meshes of a wire screen protecting spectators. The ball is dead. When such wild throw is the first play by an infielder, the umpire, in awarding such bases, shall be governed by the position of the runners at the time the ball was pitched; in all other cases the umpire shall be governed by the position of the runners at the time the wild throw was made;
APPROVED RULING: If all runners, including the batter-runner, have advanced at least one base when an infielder makes a wild throw on the first play after the pitch, the award shall be governed by the position of the runners when the wild throw was made.
Rule 7.05(g) Comment: In certain circumstances it is impossible to award a runner two bases. Example: Runner on first. Batter hits fly to short right. Runner holds up between first and second and batter comes around first and pulls up behind him. Ball falls safely. Outfielder, in throwing to first, throws ball into stand.
APPROVED RULING: Since no runner, when the ball is dead, may advance beyond the base to which he is entitled, the runner originally on first base goes to third base and the batter is held at second base.
The term “when the wild throw was made” means when the throw actually left the player’s hand and not when the thrown ball hit the ground, passes a receiving fielder or goes out of play into the stands.
The position of the batter-runner at the time the wild throw left the thrower’s hand is the key in deciding the award of bases. If the batter-runner has not reached first base, the award is two bases at the time the pitch was made for all runners. The decision as to whether the batter-runner has reached first base before the throw is a judgment call.
If an unusual play arises where a first throw by an infielder goes into stands or dugout but the batter did not become a runner (such as catcher throwing ball into stands in attempt to get runner from third trying to score on passed ball or wild pitch) award of two bases shall be from the position of the runners at the time of the throw. (For the purpose of Rule 7.05 (g) a catcher is considered an infielder.)
PLAY. Runner on first base, batter hits a ball to the shortstop, who throws to second base too late to get runner at second, and second baseman throws toward first base after batter has crossed first base. Ruling—Runner at second scores. (On this play, only if batter-runner is past first base when throw is made is he awarded third base.)
(h) One base, if a ball, pitched to the batter, or thrown by the pitcher from his position on the pitcher’s plate to a base to catch a runner, goes into a stand or a bench, or over or through a field fence or backstop. The ball is dead;

APPROVED RULING: When a wild pitch or passed ball goes through or by the catcher, or deflects off the catcher, and goes directly into the dugout, stands, above the break, or any area where the ball is dead, the awarding of bases shall be one base. One base shall also be awarded if the pitcher while in contact with the rubber, throws to a base, and the throw goes directly into the stands or into any area where the ball is dead.
If, however, the pitched or thrown ball goes through or by the catcher or through the fielder, and remains on the playing field, and is subsequently kicked or deflected into the dugout, stands or other area where the ball is dead, the awarding of bases shall be two bases from position of runners at the time of the pitch or throw.
(i) One base, if the batter becomes a runner on Ball Four or Strike Three, when the pitch passes the catcher and lodges in the umpire’s mask or paraphernalia.
If the batter becomes a runner on a wild pitch which entitles the runners to advance one base, the batter-runner shall be entitled to first base only.

Rule 7.05(i) Comment: The fact a runner is awarded a base or bases without liability to be put out does not relieve him of the responsibility to touch the base he is awarded and all intervening bases. For example: batter hits a ground ball which an infielder throws into the stands but the batter-runner missed first base. He may be called out on appeal for missing first base after the ball is put in play even though he was “awarded” second base.
If a runner is forced to return to a base after a catch, he must retouch his original base even though, because of some ground rule or other rule, he is awarded additional bases. He may retouch while the ball is dead and the award is then made from his original base.
(j) One base, if a fielder deliberately touches a pitched ball with his cap, mask or any part of his uniform detached from its proper place on his person. The ball is in play, and the award is made from the position of the runner at the time the ball was touched

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/07_the_runner.pdf

as you can plainly see, nothing has changed in the ground rules at all.

Consequently, A-Rod’s hit was either a ground rule double under rule 7.05, or it was a ball in play since it hit a media camera which was authorized to be in the field of play under rule 3.15. What it was not was a home run under either rule 6.09(d) or rule 7.05(a) or any other rule of baseball.

I’ve looked exhaustively and so have my sabrmetric friends, and there isn’t a rule in the book supporting what happened last night.

What happened also violates the laws of logic and violates the laws of physics. It violates the laws of logic, because the home run was created by an act of particular instantiation—abstract thought created a thing from a concept—what we in philosophy call a “unicorn”—which would make my old professor of logic at Harvard turn over twice—and violates Occam’s razor—that you don’t create needless entities through nominalism.

Instead, empiricism and realism dictate that a home run is a home run when we SEE and WITNESS that the ball goes over the fence—not that we imagine or suppose that it MIGHT have gone over the fence.

The problem with the umpires’ supposition last night is that it is what we call in philosophy a “modal” proposition, an “if….then” statement, that is conditional.

“If the camera were not there, then the ball would have flown over the fence.”

This can readily be recognized as a categorical statement of conditional form—namely, if there were no camera “x”, the trajectory of flight of the ball would have been different in form “y”.

The problem, as anyone knows, is that without an actual observation of same, there are a plethora of possible universes of possible “y’s”.

All we know is that the ball may or might have gone over the wall—or it may or might have bounced below the line and back onto the field. All we have is a possibility that it might have gone over the wall.

All conditionals are like this.

Moreover, accepting conditionals as true introduces a host of problems.

The medieval philosophers didn’t like conditionals, and neither should we.

It’s true that rule 9.03c states that

Each umpire has authority to rule on any point not specifically covered in these rules.

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/09_the_umpire.pdf

however, in this case, the A-Rod double IS covered specifically by the baseball rules. There is no room for discretion or authority to rule.

Here’s what actually occurred before game 3 of the World Series according to the umpiring crew:

Indeed, umpire crew chief Gerry Davis said that his crew explored every inch of Citizens Bank Park prior to Game 3, spending time reviewing areas unique to the park. The right-field camera was one of the aspects they discussed.
“We tour the field during the series whenever we go to a new ballpark, and discuss specific ground rules and potential trouble areas just like that,” Davis said. “Because we cannot control what the cameraman does with the camera, one of the specific ground rules is when the ball hits the camera, [it’s a] home run.”
http://mlb.mlb.com/news/article.jsp?ymd=20091031&content_id=7586236&vkey=news_mlb

So, the umpiring crew themselves MADE UP THEIR OWN GROUND RULE that the camera, if it was hit, would be a home run.

That would be fine, except that it’s in direct violation of Baseball Rule 3.15, as cited above, supra, that a media photographic camera, if a ball strikes it, the ball is in play and NOT a home run.

The Umpires don’t have discretion to make a ground rule about that.

The statement made by Umpire Davis is totally and completely WRONG. The rules cover the situation of when a ball strikes a camera held by a camera man.

Let’s see the rule again:

3.15 No person shall be allowed on the playing field during a game except players and coaches in uniform, managers, news photographers authorized by the home team, umpires, officers of the law in uniform and watchmen or other employees of the home club. In case of unintentional interference with play by any person herein authorized to be on the playing field (except members of the offensive team participating in the game, or a coach in the coach’s box, or an umpire) the ball is alive and in play. If the interference is intentional, the ball shall be dead at the moment of the interference and the umpire shall impose such penalties as in his opinion will nullify the act of interference.

http://mlb.mlb.com/mlb/downloads/y2008/official_rules/03_game_preliminaries.pdf

Ok, then, cameramen, news photographers who unintentionally interfere with the ball, and the interference is unintentionall, the “ball is alive and in play.”

It’s not up to Davis and his crew to make up a ground rule there. It’s up to Davis and his crew to follow Rule 3.15. Rule 3.15 trumps Article 9 and the umpire discretion rules.

Now let’s discuss the instant replay rule.

Here’s the story on the instant replay rule adopted in September of 2008:

5. Instant replay
Main article: Instant replay
In November 2007, the general managers of Major League Baseball voted in favor of implementing instant replay reviews on boundary home run calls. [19] The proposal limited the use of instant replay to determining whether a boundary home run call is:
• A fair (home run) or foul ball
• A live ball (ball hit fence and rebounded onto the field), ground rule double (ball hit fence before leaving the field), or home run (ball hit some object beyond the fence while in flight)
• Spectator interference or home run (spectator touched ball after it broke the plane of the fence).
On August 28, 2008, instant replay review became available in MLB for reviewing calls in accordance with the above proposal. It was first utilized on September 3, 2008 in a game between the New York Yankees and the Tampa Bay Rays at Tropicana Field. [20] Alex Rodriguez of the Yankees hit what appeared to be a home run, but the ball hit a catwalk behind the foul pole. It was at first called a home run, until Tampa Bay manager Joe Maddon argued the call, and the umpires decided to review the play. After 2 minutes and 15 seconds, the umpires came back and ruled it a home run.
About two weeks later, on September 19, also at Tropicana Field, a boundary call was overturned for the first time. In this case, Carlos Peña of the Rays was given a ground rule double in a game against the Minnesota Twins after an umpire believed a fan reached into the field of play to catch a fly ball in right field. The umpires reviewed the play, determined the fan did not reach over the fence, and reversed the call, awarding Peña a home run.
Aside from the two aforementioned reviews at Tampa Bay, replay was used four more times in the 2008 MLB regular season: twice at Houston, once at Seattle, and once at San Francisco. The San Francisco incident is perhaps the most unusual. Bengie Molina, the Giants’ Catcher, hit what was first called a double. Molina then was replaced in the game by a pinch-runner before the umpires re-evaluated the call and ruled it a home run. In this instance though, Molina was not allowed to return to the game to complete the run, as he had already been replaced. Molina was credited with the home run, and two RBIs, but not for the run scored which went to the pinch-runner instead.
On October 31, 2009, in the fourth inning of Game 3 of the World Series, Alex Rodriguez hit a long fly ball that appeared to hit a camera protruding over the wall and into the field of play in deep left field. The ball ricocheted off the camera and re-entered the field, initially ruled a double. However, after the umpires consulted with each other after watching the instant replay, the hit was ruled a home run, marking the first time an instant replay home run was hit in a playoff game. [21]
Source:

http://wapedia.mobi/en/Home_run?t=3.

Citing to

• ESPN – GMs vote 25-5 to use replay to aid home run decisions – MLB
http://mlb.mlb.com/news/gameday_recap.jsp?ymd=20080903&content_id=3412731&vkey=recap&fext=.jsp&c_id=nyy
http://mlb.mlb.com/news/article.jsp?ymd=20091031&content_id=7586236&vkey=news_mlb

Now, let’s parse all this.

What instant replay boils down to is this.

A lawyer sits in Bud Selig’s offices in NYC and HE reviews the play and decides how it should be called.

The head of the umpiring crew calls NYC and asks the lawyer how the play should be ruled.

Then they decide.

Uh, what’s wrong with this picture if the NEW YORK YANKEES are one of the teams in the playoffs?

Let’s see, a NEW YORK LAWYER making the call? Against a PHILLY team?

Oh right, that would be really fair, impartial and just.

Incidentally, let’s review the rule again:

The proposal limited the use of instant replay to determining whether a boundary home run call is:
• A fair (home run) or foul ball
• A live ball (ball hit fence and rebounded onto the field), ground rule double (ball hit fence before leaving the field), or home run (ball hit some object beyond the fence while in flight)
• Spectator interference or home run (spectator touched ball after it broke the plane of the fence).
Id, supra.

Note that the ball has to hit an object BEYOND the fence while in flight.

Not in front of the fence, but BEYOND the fence.

This is completely consistent with Rules 6.09 and 7.05(a) which define a home run as one hit “over the fence in flight”.

The camera, in this case, was jutting out over the fence by a good five to ten feet.

So it was not beyond the fence, but on the field of play.

Second, because it was on the field of play, it was therefore a photographic interference under Rule 3.15, and should have been considered an unintentional interference, and a live ball in play under Rule 3.15.

Third, if not a live ball in play, then the ground rule double rule of 7.05 (b) et seq. comes into play.

What’s wrong with this picture?

THERE WAS NEVER ANY JURISDICTION FOR HOME RUN REVIEW UNDER THE HOME RUN INSTANT REPLAY RULE BECAUSE THE BALL HIT BY A ROD NEVER WENT OVER THE FENCE IN FLIGHT OR BEYOND THE FENCE.

Let’s review the criteria for instant replay;

1) is it fair or foul? Well, it was a fair ball. No need for instant replay.
2) Is it a live ball that hit the fence and bounced back to the field? No. No need for instant replay.

Was it a live ball that hit some object beyond the fence while in flight?

No. It never went beyond the fence. So no instant replay was required.

Well, it hit the camera==part of which was behind the fence, but the part of the camera the ball hit was NOT beyond the fence.

This is not a semantic issue, but a real rules issue, because if you start saying that balls that don’t go over the fence in flight are home runs, just because the umpires make up ground rules before the game to make them eligible for instant review, doesn’t make it so.

I think the key here is to parse the fact that the umpiring crew made a mistake before the game establishing false ground rules, by making a camera that jutted INTO the field, a candidate for HOME RUN instant replay.

That wasn’t their call to make.

Under the instant replay rule, the camera has to be entirely beyond the fence for them to make that decision, end of story.

Remember, the rule is to decide the boundary issue of when a ball has hit an object BEYOND the fence–not an object within the ballfield.

The Umps exceeded their rulemaking authority. Also, see #3, below, because there’s actually a different rule that applies to cameras that are in the field of play and not beyond the field of play, in which case the ball is either a ground rule double or in play. In either case the result is the same; arod at 2d, texeira at 3d.

3) There was not spectator interference, but rather, photographer interference under rule 3.15, which made it a live ball under the rules, and on the field of play.

Consequently, there was no jurisdiction for an instant reply. Rather, the umpires AGGREGATED and SEIZED inappropriately the jurisdiction for home run instant replay because they forgot their own rule book and the rules of baseball.

They got the call all wrong.

It’s an insult to our collective intelligence and our common sense to say that a ball that fell short of the wall, and never went over the wall, is a “fair ball” that “went over the fence in flight” or that after instant replay, was shown to have struct an object “beyond the fence” in flight. None of these things occured on arod’s hit.

And messed up a 25 year old kids’ no hitter in the processs.

Did they purposefully do it?

Did the NY Offices of baseball reverse the call to obstruct the Phillies from repeating?

I don’t know—go ask the Atlanta Braves. No one in Bud Selig’s office was happy when they went up 2-0 on the Yankees in 1996 either.

The Commissioner’s office basically wants LA or NY to win the series because that’s good for TV ratings.

They like to ignore Philly and Atlanta even though we’re much more rabid about baseball than New Yorkers, most of whom are too poor to afford to go to a game, whereas in Philly or Atlanta, it’s mostly the middle class who attend.

And if we have to cheat and violate the rules to make the Yankees winners, what the hay?

Just remember Curt Simmons’ draft notice, and Bud Selig’s ridiculous rain delay call in last year’s Game Five in Philly.

Definitely be sure there’s bias against the Phillies in NYC.

And of course, let’s not forget they used a single New York Lawyer as the judging panel for instant replay of a World Series play involving….

The New York Yankees.

Like that’s really fair.

This is the Second World Series in a row where Bud Selig has personally messed around with our ace, Cole Hamels, in a World Series game.

First was Game Five in World Series 2008, in which Cole Hamels was shutting the door down on Tampa Bay. Selig allowed the game to proceed in the rain, then let Tampa Bay score a cheap run in rain soaked conditions against Hamels, a cheap run in conditions not fit to play in, and then Selig announced the game would be suspended—a first in Series history—which infuriated not only the Phillies, but Hamels, who had pitched well enough to win. Last year the story line was supposed to be tampa bay to win, cindarella, last place to world champions. New york didn’t want philly winning.

Conspiracy theorists, you are right if you think Selig hates Hamels.

And now this year, Selig sends Davis and an experienced umpiring crew out, and they set up illegal ground rules, and use the first chance they get, to award a two run instant replay home run—an existential, instantiated home run—an abstraction if you will, because nothing ever left the park or ever went over the fence in flight—for the sole purpose of screwing up Cole Hamels’ game in game 3, the pivotal game of the 2009 world series.

I need not point out how furious Hamels must have been with all this BS; for the second year in a row, he’s been messed with, not by the opposing lineup, but by lawyers and umpires and the commissioners’ office. They just won’t let him do his job.

I understand why he might have hung a few curves the next inning to Swisher and Damon.

What I don’t understand is why the Phillies don’t aggressively move

1) for Bud Selig’s immediate ouster as Commissioner of Baseball; and
2) an immediate amendment of the baseball instant replay rule requiring that the review of plays always be done in a neutral city by an impartial panel of three arbitrators, not lawyers, with one chosen by each team and the third chosen by the other two.
3) And the umpiring crew and ground rules be reviewed two weeks in advance of the World Series by the front office of each team, and by the teams attorneys, to be sure there are no conflicts with the Rules of Baseball.

Even my 80 year old mother in law, who just had eye surgery, who watched the game last night, and used to be a Brooklyn Dodger fan from Brooklyn, saw the play last night and she knew that the A-Rod hit wasn’t a home run.

“it didn’t go out of the park” she said. “how could it be a home run?”

Exactly. To be a home run, under rule 7.05(a), and in the common sense of every fan, a home run must go over the fence in flight.

And to be a home run for instant replay purposes, it has to go over the fence in flight and THEN hit some object.

Not hit some object which inteferes with the ball from going over the fence in flight. That’s a ground rule double or a ball live in play, as we have seen from our discussion, at length, of the rules.

The difference last night was two runs.

But the difference, from our perspective, is the lawlessness of the Bud Selig regime.

A regime which bars Pete Rose from the Hall of Fame, but tolerates steroid use by the likes of A-Rod and David Ortiz, and turns a blind eye to the income inequalities between teams like the Yankees and the Twins that keep baseball from truly being competitive.

A regime which makes arbitrary and capricious decisions each and every year about rain delays, rain suspensions, instant replay home runs in the World Series, and which plays games of law and fate which affect a man’s life and career in the case of Cole Hamels, who is a truly great pitcher along the lines of a Steve Carlton.

In fact, if you study Hamels stats, you will see that his 2009 is to his 2008, as Carlton’s 1973 was to Carlton’s Cy Young 1972.

I expect Cole Hamels to have a very bright future.

And he will not take much more of this abuse from Bud Selig and his cronies.

And neither should we philly fans.

And New York Yankee fans, you are cheating to win.

And to think I actually shed tears for you guys on 9/11.

And by the way, your NY Giants got rolled by the Eagles. At least the NFL runs a fair league. Thank you Pete Rozelle Paul Tagliabue and your successors.

Guess those memories of Joe Namath are starting to fade, eh?

–art kyriazis, philly
home of the world champion phillies, 2008 world champions
2008, 2009 National League pennant champs

Time Magazine just did a cover story on stem cell research, which is commendable. They also entitled the story “The Quest Resumes,” which is commendable, focusing on the fact that the Federal Government, under the Obama Administration, may finally allow (this may already have been approved by executive order) federal funds for stem-cell research at federally funded research institutions.

However, the subtitle of the article is “After eight years of political ostracism, stem-cell scientists like Harvard’s Douglas Melton are coming back into the light—and making discoveries that may soon bring lifesaving breakthroughs.” Time Feb 9, 2009 at p. 36.

Now, let’s examine that for a second—In Massachusetts, where Prof. Melton plies his craft, the Commonwealth and State of Massachusetts, like the State of California, has voted state support of stem-cell research at institutions of higher education. Therefore in Massachusetts, like California a bastion of biotechnology, the biotech lobby was able to secure state support for stem-cell research during the eight-year long federal ban on such research. So compared to the other 48 states, Prof. Melton was actually at an advantage because his lab was in Massachusetts.

Because of the federal funds ban, a great deal of stem cell-research has begun to spring up in places like Southeast Asia, as the Time Magazine article correctly notes, and as it well-known in the biotech industry. But a lot of it is also staying put in Cali and Mass due to those states putting up seed money for biotech research that is stem cell oriented.

Next, Prof. Melton works as co-director of the Harvard Stem Cell Institute (HSCI), which Harvard has committed substantial resources to supporting over the past eight years and well into the future. According to their 2008 report, their annual spending has grown in the past two years from just over $5 million to over $16 million in fiscal year 2008, most of that culled from private and corporate donations. HSCI currently has no less than eight ongoing challenge grant research projects sponsored for $75,000 each, all of them stem cell oriented.

Now I am a powerful supporter of stem-cell research, and I strongly advocate that the federal government support stem cell research. The question I have for Time Magazine is, and maybe perhaps for the Federal Government, is HSCI the most needy recipient for federal funds for stem cell research? The article omits that HSCI is well-funded by private donors, and omits that Massachusetts provides state support (it is not clear if HSCI accepts Massachusetts money) and therefore the article in Time is somewhat misleading.

The argument for funding HSCI federally has to be this; we, e.g. HSCI, made a good faith effort to get the ball rolling the past three years through private financing, we have already a lab in motion with research projects, so if you fund us, we will be three years closer to getting results than any other academic lab you choose to fun. Consequently, their NIH grant requests will carry a certain heft.

On the other hand, they are not as dramatically in need of the money as some other labs who don’t have any private funding at all.

A more useful article would have been to depict the overall situation in the rest of the United States, and some of the labs outside CA & MA.

This is an interesting issue and one on which arguments on both sides would and could be marshalled.

It should be pointed out that I strongly support the work of Prof. Melton and the work of HSCI. Those initiatives were put into place by then President Lawrence Summers, along with the Broad Institute initiative, a few years back, and clearly they have had the effect of putting Harvard back on the map in terms of genetics and molecular biology research.

The good news about the Time article is that the words “Stem Cells” made the cover, along with a nice bio-photo. If nothing else, Americans this week can forget about the economy and the war for a moment and realize that stem cell research is an answer to many of our problems that don’t involve boundaries and account balances and fumes spewing out of our cars.

–art kyriazis philly/south jersey
home of the world champion phillies

this is an actual case study I did at Wharton about fifteen years ago for Steve Sammut’s class on advanced patent portfolio management theory. This case is of interest because it concerns a biotech company, and because, re-reading it after a long time, it actually reads very well. Even before I had all the experience I do now, I actually had a good feel for what to do with the management of a biotech company even back then, so here it is. And yes, I did get an “A” in the class, of course. Dr. Sammut used to run the tech transfer office for Penn during the 1990s.

–art k

ps enjoy!

T-CELL SCIENCES, INC. CASE

by Arthur J. Kyriazis

MGMT 898 – PROF. SAMMUT

Wharton School (WEMBA)
University of Pennsylvania

April 22, 1994

Issues

T-Cell Sciences, Inc. (“T-Cell”) is a 1983 Cambridge, MA biotech/pharmaceutical startup sired by Patrick Kung, a “recognized pioneer in immunological research.” The main issue appears to be defining T-Cell’s ultimate market niche even as it undergoes the process of transition from a venture-funded start-up to a more mature publicly held corporation. Specifically, in the coming months and years, should T-Cell (1) concentrate upon basic across the board immunological R&D; (2) concentrate upon basic immunological R&D with a focus on diagnostic drugs and product(s); or (3) focus upon strategic alliances with large pharmaceutical companies with an eye cast towards the development and delivery of therapeutic pharmaceutical drugs?

It would appear that until the arrival of James D. Grant as CEO in November of 1986, the main issue might well have been a different one altogether, namely whether T-Cell would reorganize or liquidate. In early 1986, T-Cell was a company in trouble and one which was not being particularly well-run or well-managed, even though it had brilliant scientists and innovative technologies full of commercial promise. Even though startups might be expected to lose money at the outset, T-Cell’s losses in 1985 and 1986 totalled nearly $2 million, compared with $5.5 million capitalization from December of 1983 throught January of 1986. This apparently necessitated a public offering in May of 1986, which raised $11.1 million, followed by the hiring of Mr. Grant in November of 1986, and his hiring of a well-heeled financial CFO immediately thereafter.

In addition, up through Grant’s arrival, T-Cell had only developed two products of any consequence, ACT-T-SET, and CELLFREE, and only two joint venture/research alliances/R&D contracts of any consequence, the Syntex USA contract and the Pfizer contract, and had failed to show any revenue from product sales through 1986, and only $13 million in revenue from contracts in 1986.

In brief, one may surmise from the case study that a great deal of money was spent at T-Cell, until Grant’s arrival, on basic immunological research, without a very well defined sense of where the research was going, or how it would be profitable or generate a return to the company and to the investors. This might have been a result of Dr. Kung’s diffuse vision of the company’s market niche as somehow doing R&D better or faster, and perhaps a touch of the academic fondness for the intrinsic value of broad based academic research as opposed to targeted research and strategic alliances directed to product development and ultimate profit.

Grant’s arrival placed T-Cell on a radically different footing and he appears to have turned the company around. Losses were reduced by nearly a million dolars from 1986 to 1987, and for the year ending in April of 1987, T-Cell reported positive product sales revenue of nearly $400,000 together with contract revenues of nearly $2 million. In addition, Grant apparently negotiated the deal with Yamanouchi Parmaceutical, which as he characterizes it places T-Cell on a sound cash flow footing for the foreseeable future. In addition, Grant has introduced a sound line of command and professionalized the management of the company by hiring a financial officer and a regulatory affairs officer, paying attention to patent management issues, and spending time painting a sound, attractive picture to shareholders, potential investors and to regulators. Finally, Grant’s status an a former FDA head bodes well for the regulatory hurdles awaiting T-Cell’s products.

T-Cell’s Strengths

T-Cell’s strengths are many. First, it has a distinguished corps of researchers led off by Dr. Kung, who appears to be a leader in the field of T cell research. It is situated in Cambridge, MA, in the heart of the Harvard-MIT research community, and can be expected to easily draw upon an outstanding technical scientific staff for its research needs. Also, the scientific advisory board includes people like Dr. Mark Davis and others who are world-recognized scientific leaders.

Second, T-Cell has introduced two product lines in 1986, the ACT-T-SET and CELLFREE technologies, which assuming patent protection and FDA approval, are potentially product mainstays for the company. These two products are expected to have applicability in the diagnosis of various stages of immune system stimulation and white blood cell activity. Dr. Kung and Mr. Grant expect R&D to eventually identify other new products in the same T cell related vein with applicability in the diagnostic field.

Third, T-Cell has two joint ventures, with Syntex and Pfizer, and now a third, with Yamanouchi, which promise to focus on specific product development, with the obvious potential of delivering a drug to market which can be of wide therapeutic applicability and therefore be a cash mainstay for the company. The Syntex and Pfizer ventures aim to produce therapeutic drugs targeted at common medical ailments, including breast cancer, type 1 diabetes, rheumatoid arthritis and cytomegalovirus. The Yamanouchi venture aims to develop products to diagnose rheumatoid arthritis and lung cancer. An added benefit is the global ability to develop and market products and drugs in Japan and the rest of the world while awaiting FDA approval for their sale in the United States.

Fourth, T-Cell now has James D. Grant, who must be reckoned as an important asset of the company at this juncture. His management skills have put T-Cell on a sound business footing; his contacts have resulted in new joint venture(s); and his FDA expertise should translate into FDA product approvals.

Which Fields or Options are Most Attractive for T-Cell?

The basic R&D approach is wrong for this size company. What the company needs to do is ultimately make a decision between developing diagnostic products/drugs on its own, or on developing them with partners. Grant appears to be committed to a strategy of hedging his bets by pursuing both options. He is willing to commit some money to R&D and to diagnostics, while courting and signing deals with large pharmaceuticals for strategic alliance(s) aimed at delivering specific types of therapeutic products/drugs. Grant also feels that the diagnostic(s) division, once profitable, should be spun off because of the competition in that field.

Recommendations

Grant probably has it right. The therapeutic emphasis is the best way for T-Cell to go right now. The joint venture/strategic alliance approach is a sound one. If successful, the development of even one drug marketed to a patient population as widespread as the breast cancer or lung cancer populations promises immediate payoff for T-Cell’s efforts and a handsome reward for its investors.

With diagnostic drugs on the other hand, even if approved and even if proprietary, it is hard to see how T-Cell will be able to exploit the discoveries, so that Grant is probably correct when he surmises that this division or these proprietary discoveries will ultimately be spun off. Of course, licensing and franchising are options we have discussed which absent from Grant’s discussion(s).

The best way for T-Cell to go would be to continue to solicity these contracts and joint ventures. T-Cell has recognized, proven scientific talent and recognized expertise in this very specific area of immunological research.

One specific recommendation is that the company hire a patent portfolio manager and begin to concentrate on patenting more of its discoveries, as well as concentrate on getting products to FDA submission stage. This manager must also concentrate on getting the researchers to recognize when a discovery may or might be patentable or commerciable in some respect. These two steps will make the company attractive to investors and a steady stream of patent application(s) and FDA approval applications are evidence that a company has been doing its homework.

These steps, if followed, should result in a successful new round of equity financing and/or an invitation to buy the company out altogether. In either event, the company will have attained a substantial goal. Finally, T-Cell should keep Grant around. Given the company’s history, investors could get extremely nervous if he were to depart suddenly or unexpectedly.

–Arthur J Kyriazis, 1994

THIS WAS AN ACTUAL CASE STUDY I WROTE FOR THE WHARTON SCHOOL IN THE SPRING OF 1994.

–art kyriazis
Philly/South Jersey
Home of the World Champion Philadelphia Phillies
Home of the Incredible Philadelphia Eagles
Home of the Arena Football League Champion Philadelphia Soul
Making the Playoffs in 2008: The Sixers, the Flyers, the Phillies and the Eagles!
Happy New Year 2009

The Economic Crisis unfortunately heralds an enormous economic crisis in 2009 for Biotechnology, the major sector I work in, in at least three major facets, all of which are inter-related:

1) The collapse of the investment banks, and indeed, of the banking and lending industries generally, means that the major sources of capital for most biotechnology companies that are currently operating at a loss or “burn” rate while continuing to research or develop pipeline products, drugs or devices that are still several years away from FDA approval (or approval in any market here or abroad), in turn will collectively lead to a major liquidity crunch for biotechnology companies coming due shortly.

BIO, the major lobbying group for the Biotechnology Industry, currently estimates that there may be as many as one hundred publicly traded biotechnology companies that have nine months or less of cash left on hand with which to operate, and very few sources of liquidity to draw upon for operations thereafter, due to the fact that they currently do not have drugs in the pipeline or are not currently operating profitably, e.g. they are currently on a burn rate and are losing money.

We may therefore see the end or termination of operations of many publicly traded biotechnology companies in the next six to nine months. In addition, pharmaceutical companies (or other buyers) will be able to purchase these companies at fire sale prices if they simply wait a little while longer.

2) Venture Capital money is down at least fifty per cent, and whatever VC money is left is very, very picky right now. IPOs have come to a complete standstill, and numerous biotechs have canceled their planned IPOs. Consequently, infusions of cash from investment banks, regular banks, VCs or IPOs are currently not as viable as they were six months ago.

3) Angel investors are being besieged with three times the requests for much more money than usual as a consequence of all this top down need for liquidity, and they (reasonably so) are seeking to be more picky as well in what they invest in.

The consequence of all three of these factors is that we will see a massive shakeout of the Biotechnology Sector in 2009. Many existing companies will be bought up by existing Pharmaceutical companies or biotechnology companies that are currently cash rich or have mortar and brick assets. Companies that want to diversify into biotechnology, this is your chance to buy up patent portfolios and intangible assets on the cheap. Biotech companies will look to be acquired, look to get cash at all costs, and look to accelerate their timetables to get products to market.

It may be at the end, that only thirty to forty per cent of the existing privately and publicly held biotech companies will be standing at the end of 2009. There will be massive consolidation.

Driving this at the other end is the fact that big pharma has expiring patents, is facing increasing competition from generics, is looking to invest in biologics, which cannot be imitated by generics, and finally big pharma is facing the possibility of increased regulation and lower profit margins under the Obama Administration. This will drive and accelerate the consolidation of biotech assets and companies into the hands of big pharma, which will increasingly resemble biotech companies in terms of their R & D and patent portfolios.

These will be troubled and difficult times for Biotechnology and in some related sense, also for Big Pharma.

–dr. arthur kyriazis, m.sc.e., molecular biologist,
consultant to the biotechnology industry