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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) Login to Bookmark
  Tags: cba

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   1. Karl from NY Posted: February 07, 2019 at 02:28 PM (#5813321)
That figure has risen 38 percent since 2010, while revenues have jumped 68 percent in that time.

This is a selective endpoint. 2010 was a low year for revenues coming off the recession. 2010 was a high year for minimum salary, which had been increased by 20% (327k to 400k) by the then-current CBA that began after economically high-flying 2006.

The 2002 data point is flat out wrong. The minimum was 200k and is now 555k. If you use 2003 instead, it's true, but that's also a selective endpoint, revenues down in a recession year but minimum salary up (300k) from a fresh CBA.

You don't get to complain about the minimum not matching rising revenue if it doesn't also get to fall when revenue falls.
   2. base ball chick Posted: February 07, 2019 at 06:18 PM (#5813487)
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


YES!!!!!

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