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Sunday, May 03, 2015

MLB’s Evolving Luxury Tax | FanGraphs Baseball

A very good look at the impact of the luxury tax.

The more realistic approach for the players, then, is likely to be focusing their efforts on raising the luxury tax threshold. While the players could obviously simply agree to a more substantial set of predetermined increases to the threshold, they may be better off attempting to have the payroll limit established each year based on a fixed percentage of MLB’s estimated overall league revenues. This would help the players avoid seeing their share of revenues lag during the course of a multi-year CBA should the league’s profits end up growing at a faster pace than the union had expected, as may have been the case in recent years.

Jim Furtado Posted: May 03, 2015 at 09:02 AM | 2 comment(s)
  Beats: economics

Thursday, April 02, 2015

Are long baseball contracts worth it? - Magazine - The Boston Globe

Of course, like his fellow owners, Henry is still making a lot of money

“The difficulty for the average fan is, he doesn’t think a player is worth $32 million, so why would you pay him $64 million” for each good year? Okrent says. “Well, it’s play money if a team’s making a profit. And baseball is making huge profits.”

An owner like John Henry “is not in it to make money, he’s in it to win pennants,” Okrent adds. “And to have a good time. Therefore, whatever he pays a player — if he’s having a good time — is worth it.”

If it feels good, do it. Sounds like a mantra from 50 years ago, back when age 30 was a whole different kind of dividing line.

Jim Furtado Posted: April 02, 2015 at 06:44 AM | 27 comment(s)
  Beats: economics

Monday, March 30, 2015

The MLBPA Has a Problem | FanGraphs Baseball

Nathaniel Grow makes some great points about the growing gap between baseball’s revenues and the players’ share of those revenues. Do you know what be a great thing for the MLBPA to work toward in the next CBA? A guaranteed portion of the revenue for minor leaguers. I won’t hold my breath.

Jim Furtado Posted: March 30, 2015 at 11:55 AM | 42 comment(s)
  Beats: economics, mlbpa

Wednesday, February 25, 2015

Drew Smyly says he has no issue with Yoan Moncada, just the system | Tampa Bay Times

Millionaires vs. millionaires. The players bargain away money for draft picks to line their own pockets.

“I was only trying to say everyone else doesn’t have those opportunities. So I think there should be some way where everyone, every amateur, has the same opportunity and guidelines. And that’s not even America vs. Cuba; Dominican Republic and Venezuela players don’t get that. They have never got close to that signing bonus.

“So I’m all for it. I’m sure Moncada is the real deal; it’s nothing bad about him. I was only stating I think that it doesn’t matter where you’re from, I think everyone should have the same chance to make whatever your value is on the field.”

Jim Furtado Posted: February 25, 2015 at 08:36 AM | 9 comment(s)
  Beats: economics

Thursday, February 19, 2015

Increase in arbitration hearings doesn’t equal labor problems | FOX Sports

Arbitration…where every player wins!

Jim Furtado Posted: February 19, 2015 at 08:52 AM | 0 comment(s)
  Beats: arbitration, economics

Monday, February 16, 2015

The full meaning of signing a minor-league deal | FOX Sports

CJ Nitkowski talks about what a minor-league deal really means.

Jim Furtado Posted: February 16, 2015 at 11:59 AM | 20 comment(s)
  Beats: economics, human interest story, people

Friday, February 06, 2015

Baseball’s Worst Contracts «

When people say, “The (insert team here) HAVE to sign (insert pricey free agent)!” they often ignore the big flashy pitfalls of such acquisitions.

Like all good CEOs, the men who run Major League Baseball’s 30 teams try to be forward-thinking. Even those who have only the most cursory interest in number-crunching understand that baseball players typically peak in their twenties and decline in their thirties. They’re fully aware of the pitfalls of awarding a fat, long-term contract to an aging, one-dimensional slugger or pretty much any pitcher.

Jim Furtado Posted: February 06, 2015 at 09:35 AM | 40 comment(s)
  Beats: economics

Wednesday, February 04, 2015

Solution to MLB draft dilemma: Don’t have one | FOX Sports

This will never happen. What’s he’s essentially suggesting is a fixed salary cap.The owners might go for it because it will fatten their wallets. The union won’t go for it.

Jim Furtado Posted: February 04, 2015 at 05:50 PM | 28 comment(s)
  Beats: draft, economics, international draft

 

 

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