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Wednesday, February 20, 2019

Baseball union chief says tanking talk damaging sport - HoustonChronicle.com

This is from 2016.

To Clark, who visited Astros camp Friday on his annual tour around spring training, the sustained discussion around tanking is damaging to the sport - regardless of semantics.

“(Tanking is) a nice catchphrase that grabs the headlines, but the truth is as a union, as a part of the industry, we can appreciate as much as anything a club having flexibility to make what decisions it needs to make in order to be successful - we get that,” Clark said. “There are some sensitivities that exist obviously based on how certain clubs function and why and how they use certain revenue sharing dollars.

“All of those things are all wrapped into what we pay attention to as much as the other side (the league) pays attention. But it doesn’t help the industry to have dialogue where the heading, or the headline, says tanking. It doesn’t help the individual club, it doesn’t help the industry as a whole.”

Jim Furtado Posted: February 20, 2019 at 06:02 AM | 0 comment(s)
  Beats: cba, tony clark

Thursday, February 07, 2019

MLB Cold Stove: Salaries For Young Stars Aren’t Keeping Pace With Increasing Revenues

The minimum salary increases in the current CBA are a joke. I like Joe’s idea. I’d push teams to go even higher to $2 million, which would make the salary floor $50 million. Only give revenue sharing to teams which spend 150% of the floor. Also, push the luxury tax threshold higher

The minimum salary will be $555,000 this year. That figure has risen 38 percent since 2010, while revenues have jumped 68 percent in that time. Go back to 2002, and you find revenues have nearly tripled, while the minimum salary hasn’t even doubled. This artificially low minimum is what drives the gap between what you might have to pay a veteran, and what you can pay a rookie. It helps subsidize the “tankbuilding” efforts undertaken by teams like the Astros and Cubs earlier in the decade and a half-dozen teams in their wake.
...
You don’t need complicated schemes to fix this problem, you just need to raise the minimum salary in proportion to revenues. A minimum MLB salary of $1.5 million would better compensate the players who are getting the playing time and producing the value, while diminishing the incentives teams have to abandon free agents in favor of minimum-salaried players. This also raises the implied payroll floor, which should inhibit teams from going into long, multi-year rebuilds, financed by shared revenue, that chase away the local fans.

Jim Furtado Posted: February 07, 2019 at 05:42 AM | 2 comment(s)
  Beats: cba

Wednesday, January 30, 2019

Dale Murphy: Four suggestions for baseball’s next collective bargaining agreement – The Athletic

Guaranteeing a certain percentage of income seems like a reasonable ask for the players. A spending floor on player contracts isn’t. though. Instead, set the floor on spending floor but let teams directly pay the MLBPA for any shortage. Teams won’t be forced into signing bad contracts. The MLBPA can then take responsibility for divvying up the balance.

The idea that spending more for free agents will increase attendance is silly. Signing players for more money doesn’t increase attendance. Manny Machado and Bryce Harper will eventually sign somewhere. The terms of their contracts won’t generate more ticket sales. It about getting the player, not how much you spend on him. (By signing so late this year, there is also a question of the impact for a team’s marketing for this year.)

Owners should be required to spend a certain percentage of revenue on players. I’ll leave the exact number to the financial gurus, but whether it’s 45 percent or 48 percent or something else entirely, players should be guaranteed a certain piece of the pie, not only to ensure equity but also to prevent the free-agency freeze we’ve felt the last couple of offseasons.

Another benefit: ticket sales would increase. As Jayson Stark illuminated in great detail, free agents put fans in seats. If you want to increase attendance — and you should — acquiring elite talent is one way to do it.

To put it in Field of Dreams terms, If you sign them … people will come.

Jim Furtado Posted: January 30, 2019 at 05:55 AM | 43 comment(s)
  Beats: cba, pay site

Sunday, January 20, 2019

AZSnakepit Jim McLennan: No, baseball’s economy is not broken , Changing? Sure.

No-one has yet been able to tell me why owners are obligated to pay more to players, simply because revenue has increased. MLB is no anarcho-syndicalist commune where players and owners take it in turns to act as sort of executive officer for the week. It is a business, with players among the most well-remunerated employees of any company in the world - contracts guaranteed regardless of performance, health or federal investigation

Jack Sommers Posted: January 20, 2019 at 09:48 AM | 0 comment(s)
  Beats: cba, free agents, mlbpa

Friday, January 11, 2019

How MLB’s Luxury Tax Has Put a Deep Freeze on Spending - WSJ

Players also should consider the unintended consequences of their decision to screw amateurs and foreign free agents. By limiting the amount of money teams can spend on those players (in the hope the money would then be spent on MLB players), they’ve increased the surplus value of those players. At the same time, by not pushing for higher luxury limits, by not pushing for higher minimum salaries, and by limiting the money spent on farm/international players, teams (especially high revenue teams) have invested more money into improving their player development systems and processes. This, in turn, has made young players more viable options to replace higher cost veterans, enhancing their value even further.

Jim Furtado Posted: January 11, 2019 at 11:14 AM | 2 comment(s)
  Beats: cba, economics, luxury tax

What Explains Labor’s Declining Share of Revenue in Major League Baseball? by John Charles Bradbury :: SSRN

J.C. Bradbury looks at the dwindling players’ share of MLB revenues. The takeaway…

Player wages are not growing as fast has league revenue because player marginal revenue products have   been falling.  Observations of the returns to success over time indicate that player performance became less valuable during this time-period, which should lower the returns flowing to players
. The falling revenue share of MLB players is consistent with changes in labor’s share in the hospitality and leisure industry, which experienced a decrease from 65.7 percent to 62.1 percent between 1987 and 2011.

The share of income going to players differed   across CBAs, which indicates an important role for collective bargaining between the players’ union and owners in determining player compensation and offers a partial explanation for players’ declining marginal revenue products. Revenue sharing creates perverse
incentives by taxing teams that are successful and transferring the proceeds to losing teams. As revenue sharing increases, teams value player performance less, and labor’s share fluctuated in accord with revenue-sharing arrangements of CBAs. Recent CBAs have included more revenue sharing, which contributed the declining returns to performance and signals a weakening of union bargaining power.

Jim Furtado Posted: January 11, 2019 at 09:28 AM | 9 comment(s)
  Beats: cba, economics

Wednesday, September 19, 2018

Baseball Therapy: Fixing the Service Time Manipulation Problem - Baseball Prospectus

I guess this is an alternative. I don’t see how this suggestion would be a better system. I also don’t see how the owners or players would agree to such a structural overhaul, which Carleton says would be about a wash. Lastly, he’s underselling the consequences for marginal and veteran players.On top of that, guys like Acuna would be **worse** off, not better off.

But then there’s the Ronald Acuna problem. Acuna made his debut for the Braves in late April and has put up amazing numbers at age 20. Acuna was the consensus no. 1 prospect in all of baseball before the season started, so it wasn’t like this was a surprise. Presumably he’ll be a very special player for the next decade or so. Under the current system, Acuna (thanks to his—ahem—late-April call-up) will play his age-20 through age-26 seasons under “team control” and then will be a free agent going into his age-27 season. The proposed system would make him wait two extra years, and while he would get his three years of arbitration, he’d have to spend two extra years playing at the minimum salary (and bearing the risk of a potential career-ending injury) before he got there.

Jim Furtado Posted: September 19, 2018 at 01:05 PM | 0 comment(s)
  Beats: cba

 

 

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