Tag: collective bargaining

Do MLB owners want a salary cap, or for everyone to believe that’s true?

Like with free agency, you have to think of why certain positions are stated in public.

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There’s been a whole lot of discussion lately, from the ownership and league side, anonymously and with names attached, to the idea of both an MLB lockout in 2026 when the current collective bargaining agreement expires, and the desire for a salary cap being part of the impetus for said lockout. I’ve already written about the lockout portion of things, but I wanted to reiterate something this morning, given that the owners wrapped their winter meetings in Florida, where the subject of discussion was often the game’s economics.

Evan Drellich wrote a story last week about part of that, headlined, “MLB owners debate push for salary cap at summit this week”. A key section from that piece, for our purposes:

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Ignore Rob Manfred: lockouts exist to preempt strikes

Lockouts are a necessity for one thing only, and you’re not going to hear Rob Manfred say what that is.

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MLB commissioner Rob Manfred can say whatever he wants about the need for a lockout as something of a routine part of collective bargaining. And he certainly has, as evidenced by a recent interview with The Athletic’s Evan Drellich. A pertinent excerpt:

But one action looks virtually certain. Manfred said an offseason lockout, as there was in 2021-22, should be considered the new norm.

“In a bizarre way, it’s actually a positive,” he said. “There is leverage associated with an offseason lockout and the process of collective bargaining under the NLRA works based on leverage. The great thing about offseason lockouts is the leverage that exists gets applied between the bargaining parties.”

To which MLBPA executive director Tony Clark’s responded by saying that, “Players know from first-hand experience that a lockout is neither routine nor positive… It’s a weapon, plain and simple, implemented to pressure players and their families by taking away a player’s ability to work.”

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Orioles’ owner publicly wishes for salary cap

David Rubenstein spoke up about his wishes for a salary cap, which signals we should be watching to see if other owners start bringing it up, too.

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There’s been all kinds of talk in MLB lately about the need for a salary cap. There is no need at all, of course, given it’s attempting to solve a problem that doesn’t actually exist in more ways than one: there’s what Rob Mains pointed out last week at Baseball Prospectus, in that the competitive imbalance cited as evidence of the need for a salary cap doesn’t actually exist, and there’s also what I’ve been harping on for some time now, where the problem is not the teams like the Dodgers that are outspending everyone, but the huge chunk of the league that wasn’t spending enough years ago and isn’t spending more now even as other clubs do increase spending.

It keeps coming up, though, so let’s dive in again. Jeff Passan, over at ESPN, wrote a piece last week that included this bit that I want to highlight:

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Time skip

More teams are spending the resources they have even as others run in place, the next CBA is Manfred’s last, with his final major act likely being a landscape-altering broadcasting deal. Pieces are starting to come together that will still be in play at the end of the decade.

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The Juan Soto deal has me thinking about the future a bit. Not Soto’s future, but what’s going on in MLB. You’ll have to excuse me for using this space to get some thoughts down and further organize them, but it’ll end up resulting in another piece or two down the line once that’s all done.

Event: The Dodgers spend and spend some more, deferring even more money, and are projected for a $279 million Opening Day payroll after kicking off 2024 at $267 million — please recall that Shohei Ohtani was paid just $2 million in 2024, with the other $68 million in the deal deferred until the playing time portion of the contract expires for 2034. The Dodgers ranked third in payroll, but second for luxury tax implications, as more of Ohtani’s deal counts towards that figure in the present than in the figure calculated with actual dollars.

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The Fair Ball Act would close an exploitable loophole

A collective bargaining agreement between MLB and its minor leaguers only goes as far as federal and state exemptions allow it to.

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Minor league baseball players might have unionized in the fall of 2022, leading to their first-ever collective bargaining agreement early the next year, but that alone isn’t enough. This was obvious at the time, as, even while MLB was at the bargaining table with the Players Association, the former was trying to support an exemption that would allow them to a CBA workaround in Florida — one that would have let them avoid adhering to the state’s minimum wage laws.

Here’s what I said at the time about that, in March of 2023:

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Notes: Tony Clark on pitching, RSN viewership, Those Two Yankees Fans

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With the World Series starting, MLB Players Association executive director Tony Clark had some time for the assembled reporters. A number of topics were brought up, such as the Rays’ and A’s stadium situations — one caused by a natural disaster and the other by a manufactured one — but the thing I want to focus on is his comments on the state of pitching in MLB:

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Notes: Latest on the A’s, Reinsdorf’s Nashville gambit, WNBPA opts out of CBA

John Fisher is good for the money, he promises, also could someone please wildly overpay for a stake in the A’s, and soon? Also, Jerry Reinsdorf’s attempt to create leverage from the ether intensifies, and the WNBA players opt out.

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On Wednesday, Baseball Prospectus published a piece of mine updating their readers on what’s going on with the A’s and their quest to move to Las Vegas. I’ll give you the short version here: sources close to the A’s have been saying that there’s a plan “in place” for the private funds needed to cover the over $1 billion the A’s are on the hook for to build a stadium in Vegas, but no one is allowed to see the plan, there is no set date for revealing the plan despite a ticking clock, and oh, also the plan isn’t actually finished or in place, and is still mostly a hypothetical about things owner John Fisher could do if he wanted or needed to, I guess.

I bring this up here not just to point you in the direction of related writings elsewhere, but also because, later that same say, the New York Post published an “exclusive” story about the A’s and their quest to sell 25 percent of the team for $500 million, which some simple math tells us means they’re valuing the franchise at $2 billion. Two things: first, those same figures were reported nearly a year ago by the Los Angeles Times, and second, this doesn’t mean the Post is necessarily behind the times or the Times, so much as that it’s like Fisher simply isn’t moving off of this amount of money for this amount of ownership, and the calls for it are just getting louder given the aforementioned ticking clock.

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Notes: NPB free agency, NWSL’s new CBA, NBA’s second apron issues

Japan’s baseball players are looking to make a major change, the National Women’s Soccer League already has, and concerns about what the NBA’s new salary cap rules are doing to player movement.

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According to Evan Drellich at The Athletic, Nippon Professional Baseball players are preparing to fight for a major overhaul of the system used to keep them in place, and in Japan, for as long as it does. They plan to combat the reserve system “on antitrust grounds,” per Drellich, which would mean significant changes to not just movement within the NPB, but for leaving Japan for a league such as Major League Baseball, as well.

Players in Japan have two forms of free agency: domestic and international. Domestic free agency, the freedom to switch to another NPB team, is achieved after seven or eight years in the league, depending on whether the player was drafted out of college or high school.

But to leave as a free agent for a foreign league like MLB, the wait is nine years. Players can depart sooner, but only if their team posts them for bidding. Instead, NPB players want what’s in place in MLB: free agency after a blanket six years, regardless of entry or destination.

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It feels like MLB is trying to force a signing deadline

MLB can’t get a salary cap, but they’ve got other ideas for artificially depressing free agent spending.

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It’s March 6. Major League Baseball is weeks into spring training now, and yet, some of the top free agents are still sitting there by the phone, waiting to be signed. It’s a real problem, but what the problem is, exactly, is not something that the league and the Players Association agree on.

MLB wants to institute a signing deadline, for all free agent activity, that’ll create “flurried,” short-term activity in the offseason. They’ve even proposed such a deadline to the union, which was not interested in that kind of arrangement, and have since brought up the fact they proposed it as if it would have been a true solution to the issue. Alden Gonzalez recently wrote about all of this for ESPN:

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Notes: White Sox stadium rumors, changing free agency, Diamond

Jerry Reinsdorf is doing it doing, changes are needed to get players to free agency sooner, and Diamond has a deal, maybe.

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Remember back during the winter meetings, when Jerry Reinsdorf went and had lunch with the mayor of Nashville? With the idea being that it was solely to help build up some leverage for some stadium demands in Chicago? Last week, the Chicago Sun-Times reported that the White Sox were in “serious talks” to build a stadium, following a meeting between Reinsdorf and Chicago’s mayor, Brandon Johnson.

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