BASEBALL / DAILY REPORT : AROUND THE MAJOR LEAGUES : Kleinman Fired by Yankees

The New York Yankees’ shaky hierarchy began to collapse when Leonard Kleinman was fired as chief operating officer and Commissioner Fay Vincent threatened to reject Daniel R. McCarthy’s nomination as managing general partner.

Kleinman was fired by McCarthy because Kleinman refused to drop a lawsuit against Vincent, according to a source.

Yankee owner George Steinbrenner, who agreed in July of 1990 to a ban from daily operations, is trying to regain control, but Vincent will not speak with him until two lawsuits are dropped, including Kleinman’s. Steinbrenner has funded Kleinman’s suit, according to court documents.

Free-agent shortstop Kurt Stillwell and the San Diego Padres agreed to a $3.5-million, two-year contract, three days before the team was set to start spring training.

Stillwell will be paid $1.75 million for each of the next two years. He is also bound to the Padres for 1994, with both sides agreeing to salary arbitration that year.

The Cincinnati Reds won their arbitration case with Greg Swindell, giving the pitcher a $2.5-million salary and clubs with an 11-8 advantage over players. Swindell earned $2,025,000 last year.