Well I wish I could help out, but suffice it to say Heritage (or perhaps their consignor) is dreaming with that reserve. That type of Gumball Machine routinely sells in the $150 - $250 range on ebay and elsewhere. Granted, they usually have no header card, or one that's not Baseball/Sports-related.
But even optimistically, that header card should add about $400 to the value (max). As you said, it's not a Negro League piece... more of a charitable donation piece. I guess they believe the small photo of the Cleveland Player makes the machine over 6 times its actual worth.
Sometimes it's best not to question it, and simply be thankful you're out of the running with their "pie in the sky" reserve. Heritage has always had high pre-auction estimates... the highest in the hobby, IMHO. So either this is one of those items, or the owner consigned it to Heritage with the stipulation that they set that ambitious reserve. I strongly doubt this lot will result in an actual sale.