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Monday, July 04, 2016

OTP 2016 July 4: Bustos withdraws support for baseball bill

U.S. Rep. Cheri Bustos, D-Ill., has withdrawn her support for a bill that would have exempted minor league baseball players from the minimum wage standards in the Fair Labor Standards Act.

The bill drew nationwide attention, as it was introduced in the midst of a legal fight over whether to pay minor leaguers the minimum wage.

Bitter Mouse, Space Tyrant Posted: July 04, 2016 at 04:08 PM | 1904 comment(s)
  Beats: minor leaguers, politics, salaries

Thursday, May 26, 2016

Uncompetitive Minor League Wages Might Be Deterring Talent

For simplicity’s sake, let’s assume that there are two types of amateur prospects: You have the elite ones who ultimately get big signing bonuses. Then you have the non-elite ones who aren’t good enough to get big signing bonuses. If you are in the first group, you’re certainly going to go pro regardless of your socioeconomic status. You get a big signing bonus and get to play baseball for a living. That’s a win-win.

Now let’s say you’re a player in this second group. You’re good enough to go pro, but not good enough to command more than a few thousand in signing bonus. Let’s split this group into sub-groups.

If you’re rich, you probably go pro since the money isn’t a huge factor for you. You probably have some money in savings and/or a family willing to support you. But, since you were a fringy prospect to begin with, you probably don’t make it to the majors. This drives down the overall success rate for the rich.

If you’re poor, the decision is a tougher one. While the idea of playing baseball for a living sounds great, you also need to put food on the table. You may have very little savings, and your family may not have the means to support you. As a result, an outsized share of the poor group are the guys who got big bonuses (who are also likely to play in the majors). In other words, the low wages are basically weeding out the fringy low-income prospects, which drives up the major league success rate for the poor.


RoyalsRetro (AG#1F) Posted: May 26, 2016 at 02:13 PM | 66 comment(s)
  Beats: minor league, salaries



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