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Territorial (Totalitarian?) Rights

(Apologies to those of you in Oakland but the area is a dump - at least the area around the Coliseum and BART station is.  Building a new stadium on this site, to borrow a line from Art Modell, "is akin to putting a new dress on a hooker.")
Can someone make since of this territorial rights rule for me please?
How can baseball promise territorial rights to an incoming ownership?
Take the A's out of the equation for a minute.  Doesn't San Jose have a say?  Are they not allowed to ever have a baseball team...any baseball team?  So instead of embracing their own team and buying season tickets to enjoy nights at the ballpark...locally, their only choice is to travel 50 miles (100 roundtrip).  So a Giants season ticket holder living in SJ would have to travel 8,100 miles a season.
How does baseball get away with something like this?  Do the residents of SJ also have 10% of their income taxed for King Magowan?

Hopefully, Wolff gets approved quickly so we do not have to hear any more Oakland stadium rhetoric.   And once in the fraternity, Wolff, with Selig, can swing 75% of the owners to reverse this idiotic rule.  Worst case, he has to pay off Mags - hopefully, it does not come to that.

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