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Sunday, December 20, 2020

Report: Major League Baseball payrolls tumble nearly $2.5 billion in 2020

Major League Baseball payrolls plunged to $1.75 billion during the pandemic-shortened season from $4.22 billion, and the World Series champion Los Angeles Dodgers led with $98.6 million—the smallest payroll for the top spender in 20 years.

Base wages for 40-man rosters tumbled to $1.54 billion, according to information sent from Major League Baseball to teams on Friday night and obtained by The Associated Press. That was down from $3.99 billion in 2019.

Prorated portions of signing bonuses totaled $120.6 million, down slightly from $122.8 million. Earned bonuses fell to $25 million from $26.9 million.

Buyouts of unexercised 2021 options came to $58.2 million, more than double the $26.9 million for buyouts of unexercised 2020 options, a sign of expense-cutting amid the revenue loss.

RoyalsRetro (AG#1F) Posted: December 20, 2020 at 09:59 AM | 2 comment(s) Login to Bookmark
  Tags: payroll

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   1. Walt Davis Posted: December 20, 2020 at 10:59 PM (#5995280)
That seems a silly way to dice up the numbers. The only one in there that tells me anything useful is the last one. I mean it should surprise nobody that (60/162)*4.22 B is 1.56 B (or 1.48 B out of 3.99 B). Signing bonuses not affected because not part of base salary and were "earned" at signing (with a given payment schedule). I guess I'm interested in the "earned bonuses." Roster bonuses I suppose would have usually been unaffected but were PT bonuses pro-rated in terms of eligibility but not payment? That seems unlikely. (That is, I would have guessed a bigger drop there but maybe there are fewer PT bonuses than I think.)

I'd like to see the raw data on the options to see how big that effect is. I assume that the 2021 total for options was similar to 2020 and therefore this is a real change -- i.e. there were $90 M of options in each year (just a number) and $58 M were declined this year vs. $27 last year. But this year's also included Lester ($10 M buyout) and Daniel Murphy ($6 M, you can always count on the Rox) so if there didn't happen to be anybody like that last year, that would be half the difference. I'd also like to see the list just to get a sense of how many I agreed with last time vs. this time.
   2. JRVJ Posted: December 21, 2020 at 10:03 AM (#5995304)
Maury Brown posted a similar article on Forbes.

I suggest reading that one.

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