MLB season on hold. UPD: League and union agree to 60 game season, starting July 23

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LeHab

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Aug 31, 2005
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Who has the leverage? As MLB, players negotiate baseball's return, experts assess pay cut question

MLB will propose a plan to restart the baseball season amid the coronavirus pandemic as players are expected to push back on a pay cut.


But does the league have the power to force players to take a pay cut?

"Force" might be a strong word. Players seem to have more to lose by not getting paid if the season is cancelled. Owners will lose too but we know they are in for the long game while most MLBer have short careers. Will take some time but by end of May there should an agreement in principle one way or the other.
 

KevFu

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"Force" might be a strong word. Players seem to have more to lose by not getting paid if the season is cancelled. Owners will lose too but we know they are in for the long game while most MLBer have short careers. Will take some time but by end of May there should an agreement in principle one way or the other.

It's a two-way street for both.

The owners would lose LESS MONEY not playing this season by about $600 million. They're GOING to lose money no matter what, it's just "how much?" You're right that long-game they are fine. But the opportunity: playing right now while there's no other sports would be pretty big for them going forward.

The players lose a year of paycheck, a year off their career... but they get their service time, so their career paths are on track just like before.
That's bad for older players who are overpaid (Robinson Cano gets his share of $170 million to all of baseball instead of $24 million), but good for everyone else.

However, the players also have to go from safe at home with their families during a pandemic to playing and traveling.

The disconnect for the players is:
1. If you want me to quarantine and keep me from my family for my healthy/safety... as your employee, that "Overtime" (aka More Money)
2. If you want me to not quarantine and play, I'm risking my health/career/even life during a pandemic, as your employee, that's "Hazard Pay" (aka More Money)
3. They've already agreed to less money: Pro-rated pay if they player fewer games.

And most importantly, the owners want the players to share in the responsibility of revenue LOSSES, but not the benefits of revenue PROFITS past or future.

Last year, MLB teams combined had a profit of $1.5 BILLION. The owners didn't send a $750 million shareholder bonus check to the MLBPA to split, the owners kept every dime.

But now that expenses are greater than revenue, the players have to share that loss? Nah, the profits from last year and the next two years they get to sell tickets can cover the 2020 loss.
Unless MLB wants to send 50% of profits to MLBPA every year going forward, sharing the losses in 2020 is a no go.
 

LeHab

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Aug 31, 2005
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It's a two-way street for both.

The owners would lose LESS MONEY not playing this season by about $600 million. They're GOING to lose money no matter what, it's just "how much?" You're right that long-game they are fine. But the opportunity: playing right now while there's no other sports would be pretty big for them going forward.

The players lose a year of paycheck, a year off their career... but they get their service time, so their career paths are on track just like before.
That's bad for older players who are overpaid (Robinson Cano gets his share of $170 million to all of baseball instead of $24 million), but good for everyone else.

However, the players also have to go from safe at home with their families during a pandemic to playing and traveling.

The disconnect for the players is:
1. If you want me to quarantine and keep me from my family for my healthy/safety... as your employee, that "Overtime" (aka More Money)
2. If you want me to not quarantine and play, I'm risking my health/career/even life during a pandemic, as your employee, that's "Hazard Pay" (aka More Money)
3. They've already agreed to less money: Pro-rated pay if they player fewer games.

And most importantly, the owners want the players to share in the responsibility of revenue LOSSES, but not the benefits of revenue PROFITS past or future.

Last year, MLB teams combined had a profit of $1.5 BILLION. The owners didn't send a $750 million shareholder bonus check to the MLBPA to split, the owners kept every dime.

But now that expenses are greater than revenue, the players have to share that loss? Nah, the profits from last year and the next two years they get to sell tickets can cover the 2020 loss.
Unless MLB wants to send 50% of profits to MLBPA every year going forward, sharing the losses in 2020 is a no go.

As you said, without gate receipts, owners are better off cancelling the season than playing with only prorated salaries. Most players have short careers, some are living paycheck to paycheck. Losing a year of pay is very significant for most, when time comes to vote the "have not" will have more weight.

Owners can simply wait and every two weeks submit a new offer with 10 less games meaning less and less pay for the players. If the season is cancelled so be it, owners will be better off financially. Players agreed to current CBA which grants commissionaire discretion to cancel games without pay in case of national emergencies. If players wanted another deal, they should have negotiated otherwise.

Sure if there are safety and family concerns, both parties need to negotiated an acceptable solution. I still don't see why players can't have families around.
 
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LeHab

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A few years ago a buddy of mine worked accounts for one of the LA based teams and his takeaway from working with that club? "I thought Hollywood was creative".

MLBPA has to be really careful not to rush a possible revenue sharing model to ensure relevant baseball related revenues will be properly accounted for. Hopefully both sides will approach this in good faith especially as new CBA is up for renewal after next season.
 
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LeHab

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Report: MLB eyes $640K loss per game sans fans

Interesting insight into MLB financial forecasts for 2020 under different scenarios. MLBPA requesting actual financial documents.

MLB headed into the season projecting $9.967 billion in revenue, including $7.548 billion at the local level, according to the presentation.
Expenses totaled $10.234 billion: $4.366 billion for major league player compensation, $198 million for pensions and benefits, $537 million to sign amateurs, $4.73 billion in local expenses and $403 million for the central office.

Ehh so before pandemic Owners projected losses for the season? Yeah about that creative accounting...
 
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LeHab

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gstommylee

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https://nypost.com/2020/05/19/mlb-thinks-email-is-smoking-gun-in-salary-fight-with-players/

Even if I enjoy the public drama, wish they would take the issue behind closed doors and solve it for good. Not convinced waging a PR battle over financials is the best straegy when many fans worry about job losses and health issues.

That's the problem with sports unions, they feel whining to the public and win the battle of public opinion will get the employer to cave in to demands.
 

LeHab

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First official MLB offer was submitted to MLBPA:

Report: MLB Offers Players Sliding Pay Scale in Return-to-Play Proposal

Intriguing as Owners are proposing a sliding scale based on players contracts with highest earners taking the biggest hit. No details around how much the difference will be. If this passes, will some star playerrs elect to sit the season? Would be pretty bad for them from a PR point of view.Great move, will cause frictions within MLBPA.
 

LadyStanley

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Sep 22, 2004
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Is baseball coming back? Here's the latest news on MLB, player negotiations to restart season

Major League Baseball's latest proposal for restarting the season involves pay cuts for players and left the union disappointed.

Players express disappointment with MLB's new economic proposal

MLB players are not happy with the league's economic proposal.

Who deserves what? Optimism creates urgency, not agreement in baseball's bid to restart season

As the country turns an optimistic eye toward the idea of sports returning, neither MLB nor its players will want to be seen as the cause of an impasse over mo...


Fighting over $$$$$$$$
 

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