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Labor Issues Newsbeat

Wednesday, June 17, 2020

What MLB’s legal waiver demand is really about

In other words, what MLB wants is not just a waiver of the MLBPA’s (extremely plausible) claim that it violated the March 26 agreement or failed to negotiate in good faith. It also wants players to waive any claims against the league that it failed to keep them safe from the pandemic through substandard safety and testing protocols. Consider: whilst the NBA is doing daily testing, MLB proposed looser testing, banning high-fives, and encouraging social distancing.

On Tuesday, MLB announced that several players and coaches had already tested positive for COVID, ostensibly as a way of bolstering their argument in favor of fewer games ahead of a probable second wave of the pandemic this fall. But in so doing, the league gave away the game. The league’s argument boils down to the fact that players will get the virus anyway, so we should have a shorter season. The players’ proposal for a longer season would simply require the owners to pay for a proper testing regimen. MLB’s insistence on a shorter season is not a substitute for proper medical guidance or necessary tests.

So the bottom line is, once again, MLB’s bottom line.

RoyalsRetro (AG#1F) Posted: June 17, 2020 at 09:14 AM | 25 comment(s)
  Beats: labor issues

MLB Collective Bargaining and Risk Sharing

The reason this matters, and the reason this is a source of acrimony between the owners and players now, is that television revenue has grown far more quickly than ticket revenue. Player salaries have grown in magnitude about as much as ticket revenues have— suggesting this theory is likely true. Owners have seen higher profits from faster growing television revenue…..

If the owners want the players to accept the downside risk associated with low ticket revenue, they need to find a way to share the upside risk associated with higher television revenue.

A starting point is simple. Instead of minimum salaries defined exactly by the CBA, let free agent and arbitration prices be set in excess of the salary minimums, and set future salary minimums distributed to all players. Let those minimums represent some fixed X% of the cumulative national television deals. Bargain about that percentage, but when TBS offers 40% more in their next deal than their current deal, players will see that upside. In exchange, when future identifiable events lower ticket revenue— e.g. say government regulations of Y% reduced capacity in stadiums due to COVID-19 in 2021– the players will accept lower salaries by Z%. This gives players exposure to upside and gives owners protection from downside. Everything else is bargaining around X, Y, and Z%.


RoyalsRetro (AG#1F) Posted: June 17, 2020 at 09:12 AM | 0 comment(s)
  Beats: labor issues

Friday, June 12, 2020

Sources: MLB owners expected to offer 70-75 games in proposal

Major League Baseball’s owners are expected to send a new proposal to the players’ union on Friday that includes a 2020 season lasting between 70 and 75 games, sources told ESPN’s Karl Ravech.

The owners’ proposal would include a payment of somewhere between 80% and 85% of the players’ prorated salary, which is a slight increase from the owners’ last offer. This proposal also includes expanded playoffs and a share of the playoff pool for players.

This marks the third exchange of proposals between the two sides this week.


RoyalsRetro (AG#1F) Posted: June 12, 2020 at 12:10 PM | 70 comment(s)
  Beats: labor issues

Friday, March 27, 2020

MLB, players agree to $170M deal on early season pay, cut down draft

Major League Baseball and the players association have reached a tentative agreement regarding several issues surrounding a potentially shortened or canceled season, sources confirm to Yahoo Sports’ Tim Brown.

ESPN’s Jeff Passan first reported the deal Thursday night.

MLB owners have agreed to advance players portions of salaries to be spread out over April and May. If there is no season, that money will be kept by the players. Each of the 30 teams will contribute just short of $95,000 per day to eligible players for 60 days or until start of 2020 season, not to exceed $170 million. The Athletic’s Ken Rosenthal adds that salaries will be pro-rated based on length of season, and players have agreed not to sue for full salaries.

As previously reported, the players would accrue a full year of service time if they are active for the shortened season. If the season is canceled, players would gain the same amount of service time they accrued in 2019, which is important because it means players like Mookie Betts or Trevor Bauer would become free agents as scheduled.


QLE Posted: March 27, 2020 at 12:49 AM | 31 comment(s)
  Beats: draft, free agency, labor issues, negotiations, salaries, service time, shortened season




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