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Labor Issues Newsbeat

Friday, July 08, 2022

MLB, MLBPA remain far apart in international draft negotiations as July 25 deadline looms, per report

Major League Baseball and the MLB Players Association remain “very far apart” on negotiations concerning the implementation and format of an international draft, according to ESPN’s Alden González. The two sides deferred on the issue in March when they reached a new Collective Bargaining Agreement. That deferral came with a deadline, however, and that deadline (July 25) is now just weeks away.

González notes that the league originally offered a 20-round draft with hard slotting, with $181 million going toward draftees and a $20,000 limit on free agents. The union countered with a 20-round proposal that includes no cap on individual slots, with a request for $260 million going toward draftees, and a $40,000 limit on free agents.

For those keeping score, that means the two sides are $79 million apart in the total draft bonus pool size, as well as $20,000 off on the free-agent limit. They also disagree about the hard-slotting aspect.

Should the two sides fail to reach agreement on an international draft format by the deadline, then the qualifying offer and free-agent compensation systems will remain in place. If the sides do come to terms on an international draft format, then the qualifying offer and free-agent compensation will go away.

RoyalsRetro (AG#1F) Posted: July 08, 2022 at 04:37 PM | 2 comment(s)
  Beats: international draft, labor issues

Saturday, November 06, 2021

MLB CBA negotiations: MLBPA makes second economics proposal with only minor changes, per report

The Players’ Association made their second economic proposal last week, report The Athletic’s Evan Drellich and Ken Rosenthal, though it included only minor adjustments to their initial proposal in May. Among other things, the union’s May proposal included:

Raising the minimum salary and getting players into arbitration earlier.
Changes to the way service time is calculated, including early free agency in some cases.
Adjustment to the way the draft order is determined (currently reverse order of the standings).

MLB made their first (and so far only) economic proposal in August and it included a $100 million salary floor and a $180 million luxury tax threshold, substantially lower than the $210 million threshold in 2021. Also, the salary floor would be a “soft” floor, in which teams could simply pay a penalty should they fail to field a $100 million roster.,

RoyalsRetro (AG#1F) Posted: November 06, 2021 at 02:14 PM | 4 comment(s)
  Beats: draft, labor issues

Wednesday, June 17, 2020

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



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