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Tuesday, June 18, 2019

M.L.B. and Players’ Union Set to Begin Early Labor Talks - The New York Times

“What you see going on here is really a distribution issue, how the players want salary distributed. How salary is distributed among our teams is an issue that systems can be designed to address.”

Jim Furtado Posted: June 18, 2019 at 07:36 PM | 1 comment(s)
  Beats: cba, collective bargaining agreement, mlbpa

Friday, April 05, 2019

Rosenthal: In the screwy world of baseball economics, even as the players win (hello, $100 million!), they’re losing – The Athletic

The players shouldn’t be thinking about striking. Instead, they should be changing course by thinking bottom up rather than top down.

Raise the floor by substantially raising the minimum. Improve the pension system. Instead of working against them, bring minor leaguers into the fold as associate members and help improve their lot, while also increasing the union’s bargaining position in future CBA.

The clubs can argue that the approximately $4 billion they just spent on free-agent deals and extensions is proof the system is not broken, an over-simplification, but one that many fans — and perhaps even some players — will fail to grasp. The players’ only real leverage is a strike, but one agent who spoke to The Athletic is not alone in his assessment that the union is “a house very much out of order,” one which has struggled to articulate a clear, coordinated vision of how to fix this system.

Jim Furtado Posted: April 05, 2019 at 09:40 AM | 28 comment(s)
  Beats: cba, contract extensions

Thursday, March 28, 2019

2019 MLB salaries: Disparity in payrolls draws concern from players

The disparity in payrolls exemplifies why there may be a push for a salary floor in the next collective bargaining agreement, which players have openly discussed. It’s disturbing to have a team like the Red Sox to have three pitchers (David Price, $31 million; Rick Porcello, $21.1 million; and Chris Sale, $15 million) earn more than the entire Rays’ team.
...
“One of the best things about baseball is the competitive integrity of the game,’’ Cleveland Indians co-ace Trevor Bauer said in February. “For a long time, it’s been because of a lack of a salary cap. But I think we have a pseudo-salary cap now with the luxury tax.

“That needs to change.’’

They now have the numbers to prove it.

Jim Furtado Posted: March 28, 2019 at 02:26 PM | 26 comment(s)
  Beats: cba

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

 

 

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