Blog Entry

Baseball on verge of labor agreement

Posted on: November 13, 2011 1:02 pm
Edited on: November 14, 2011 9:44 am
 
By Evan Brunell

Baseball is nearing agreement on a new labor agreement, Fox Sports reports.

Despite assurances all season that the labor negotiations were going smoothly and could be wrapped up in time for the World Series, that did not happen. One of the biggest sticking points has been commissioner Bud Selig's adamance that the amateur draft have a slotting system. Players viewed a slotting system, which would limit the amount of dollars drafted players could sign for depending on where they were picked, as a form of a salary cap.

However, it appears that both sides are closing in on a resolution with the draft process. The deal is "expected to include significant restraints on the amount of money teams spend on draft picks and significant changes in draft-pick compensation for free agents," writes Ken Rosenthal. Previous reports had something akin to a luxury tax being in place for the draft class, something ESPN's Buster Olney confirmed Monday.

While teams can still spend as much as they want on the draft, clubs will be taxed for going over a certain amount of dollars based on a 10-round ceiling. If a team surpasses the ceiling one time, it will be taxed money. A second time would cost a top draft pick. In addition, first-round compensation is expected to disappear, which no longer cause teams to lose their first-round pick due to signing a top free agent. If it goes into effect for 2012, the Phillies will benefit by signing closer Jonathan Papelbon and keeping its pick.

Olney characterized talks as at "the 10-yard line," so we could hear something by the end of Monday.

The changes sound good -- in theory. But restricting the earnings of amateur players will only push them to other sports, plus it's not as if the Yankees have been dominating draft spending in recent years. The Pirates spent the most on the 2011 draft, setting records in the process. The record Pittsburgh passed was not the Yankees, though. It was the Nationals. Other teams passed Washington's old record in 2011 too, including the Nationals themselves, Royals, Cubs and Diamondbacks. The Rays, Mariners, Padres, Blue Jays and Red Sox were the only other teams to top $10 million in spending.

And a luxury tax is supposed to be good for the draft class? It's hard to envision that. Not only would a luxury tax scare away teams who don't have large revenue, it opens up the field for teams do have such revenue to pay over and above the tax because they can afford it. Selig's goals make some sense, but in practice they could be disastrous.

There's no word on when a new CBA would be announced, but it could happen as early as Sunday or Monday. Both sides are scrambling to have something in place before the GM meetings start on Tuesday -- and especially before owners meetings on Thursday. The union is meeting with player agents Monday through Wednesday, so there is motivation to get something done, fast. Aside from the draft issue, Rosenthal writes that there are other "significant" issues that could delay completion of the CBA, but that a new agreement will be in place well before the previous agreement expires on Dec. 11.

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Comments

Since: May 18, 2010
Posted on: November 15, 2011 7:54 am
 

Baseball on verge of labor agreement

I liked the compensation pick for signing a top free agent. It is one of the few things that kept prices down and players at their original team. Getting rid of that is a mistake.



Since: Jul 24, 2009
Posted on: November 14, 2011 9:09 pm
 

Baseball on verge of labor agreement

Yankee fan, this isn't just about your team, which obviously you think $206 to $34 makes sense for a competitive league(talk about dillusional)....
Go back and re-read my previous post. Where exactly did I say that 206 to 34 makes sense for a competitive league????  You're assuming that I think that and you're wrong.  You completely missed the point I was trying to make about a salary floor. 
If you don't think 'back room' deals don't happen in large business, than it is you who don't understand how it all works...
Again, that is only your opinion and you never explained who exactly was paying this "money" to small market owners. 

To use the Yankees, as an example, they will have to go after some big pitchers, or are they going to continue to lose with ONLY a $206 million dollar roster.....The Yankees pitching is a joke for that amount of money and you know that...

The math is pretty simply...Freddy Garcia and Bartolo Colon totalled around $2.4 million..They will have to spend ALOT to get more....C.J. Wilson alone will cost around $20 million to sign with the Yankees....Another good pitcher will be around $15 million...That's $32 million increase right there....David Robertson and Brett Gardner are not even totally $1 million together, and each will want at least $10 million or they will walk...It's just the reality of the out of control contracts....

You're assuming that the Yankees are going to spend 32 million dollars this offseason.  What if CJ Wilson doesn't want to pitch for the Yankees and pulls what Cliff Lee did last year???  There's really nobody else out there for the Yankees to sign.  For all you know, the Yankees could pass on signing any free agent pitchers this offseason and go with guys from the farm system like Hector Noesi for example. Believe it or not, the Yankees do have some talented pitchers in the farm system that will be ready soon so they will not need to go out and overpay for free agent pitchers. 
Now add Curtis Granderson and Robinson Cano...Both of those will demand at least double or triple of what they currently are making...Both will be making around $20 million a piece....So that's another $22 million...So just in 6 or 7 players, your payroll just went up $65-$70 million dollars....

The only player you lost was Jorge Posada, but Nova isn't making half a million yet?  $300 million in 3 or 4 years, when all these contracts have to be done is very realistic....
I agree with you that eventually Cano and Granderson will be making around 20 million when they re-up their contracts.  But there will also be more contracts like AJ Burnett's and Nick Swisher's that will be off the books in a few years to offset the cost of giving Granderson and Cano their extensions.   Again, I think that it's very unlikely that the Yankees will have a 300 million dollar payroll anytime soon. 



Since: Aug 17, 2006
Posted on: November 14, 2011 3:47 pm
 

Baseball on verge of labor agreement

No fix on the revenue issues will be more of the same.   Baseball has gotten the lucky that the Yankees and Red Sox have had bad luck in signing pitchers to huge contracts so that the top two payrolls did not make the World Series.   They need to share revenue so that all teams have a shot a signing their star players and getting some new star players without overpaying like Jason Wyerth.  



Since: Jul 9, 2009
Posted on: November 14, 2011 3:29 pm
 

Baseball on verge of labor agreement

In order to create that parity that everybody speaks of, you also have to have a salary FLOOR, which would force the lower market teams to spend more money, which most of these owners don't want to do.  
I don't recall the details, but isn't there some limited version of that in effect now--possibly referring to percentages rather than dollar amounts?  For example, didn't the Marlins get into trouble with MLB a year or so ago for not spending enough on player salaries?



Since: Oct 1, 2006
Posted on: November 14, 2011 2:12 pm
 

Baseball on verge of labor agreement

This is Wall-mart vs a 'mom and pop' store analogy...The Yankees have underacheived, since the 'spending spree' by large market teams started(probably around 2002), but it is still 'long term' improbable for small market teams to keep up...

The NBA and MLB are the last 2 that have NOT seen the light yet...Ofcourse the Yankees and Red Sox don't want a cap, yet they have been in the playoffs way too much compared to other teams, and that common denominator is $$$$$...

Again Wall-mart vs 'mom and pop'---not fair at all..






Since: Oct 1, 2006
Posted on: November 14, 2011 1:55 pm
 

Baseball on verge of labor agreement

Yankee fan, this isn't just about your team, which obviously you think $206 to $34 makes sense for a competitive league(talk about dillusional)....

If you don't think 'back room' deals don't happen in large business, than it is you who don't understand how it all works...

To use the Yankees, as an example, they will have to go after some big pitchers, or are they going to continue to lose with ONLY a $206 million dollar roster.....The Yankees pitching is a joke for that amount of money and you know that...

The math is pretty simply...Freddy Garcia and Bartolo Colon totalled around $2.4 million..They will have to spend ALOT to get more....C.J. Wilson alone will cost around $20 million to sign with the Yankees....Another good pitcher will be around $15 million...That's $32 million increase right there....David Robertson and Brett Gardner are not even totally $1 million together, and each will want at least $10 million or they will walk...It's just the reality of the out of control contracts....

Now add Curtis Granderson and Robinson Cano...Both of those will demand at least double or triple of what they currently are making...Both will be making around $20 million a piece....So that's another $22 million...So just in 6 or 7 players, your payroll just went up $65-$70 million dollars....

The only player you lost was Jorge Posada, but Nova isn't making half a million yet?  $300 million in 3 or 4 years, when all these contracts have to be done is very realistic....




Since: Jan 1, 2007
Posted on: November 14, 2011 9:06 am
 

Baseball on verge of labor agreement

The Blue Jays have spent upwards of $100 million in the past few years. A floor would not hurt them. A floor would hurt teams like Tampa, Oakland, and the like that are lucky to top $40 million.



Since: Jul 24, 2009
Posted on: November 14, 2011 9:00 am
 

Baseball on verge of labor agreement

How can the Royals, Indians, Diamondbacks, Rays, Mariners, Padres, Blue Jays, Pirates, A's, Brewers, Astros, Twins, Padres, Rockies ect. not want a Hard Cap??????? 
Probably because it would require these team's owners to spend more money.  You can't just have a hard cap and punish teams like the Yankees and Phillies for spending the money they earn every year.  In order to create that parity that everybody speaks of, you also have to have a salary FLOOR, which would force the lower market teams to spend more money, which most of these owners don't want to do.  

At the very least there should be a spending ratio....Yankees spent $206 million to Pirates $34 million?  Uh, thats 9 times more than the bottom teams payroll?  In 2 or 3 years, the Yankees payroll will reach around $300 million because they will still be making money...Are these small-market teams that stupid?????
There's no chance in hell that the Yankee payroll will be 300 million dollars in 2-3 years.  Since 2004, the Yankee payroll has only increased by about 30 million dollars.  As of right now the Yanks payroll sits at about 202 million. So now all of a sudden, the Yankees are going to increase their payroll by another 100 million dollars in 3 years????  Can you say delusional????
They are worried about draft spending??????? MLB owners must be getting ALOT of behind the scenes money to not make it a serious issue...
LOL. "Behind the scenes" money???? And who might be giving these owners all this " money" you speak of??? How much are they getting??  These anti-Yankee fans and their conspiracy theories make me laugh.  





 



Since: Oct 1, 2006
Posted on: November 14, 2011 12:38 am
 

Baseball on verge of labor agreement

What in the wide world of sports?  No talk of a hard cap? No talk of shorter guaranteed contracts or max contracts?  Are GM's and owners crazy to think the 'SPENDING GAP' won't soon be 20 times more than other teams(right now its around 9 times)....It is conceivable that the Yankees and Red Sox could spend $300 million sooner than you think...

How can the Royals, Indians, Diamondbacks, Rays, Mariners, Padres, Blue Jays, Pirates, A's, Brewers, Astros, Twins, Padres, Rockies ect. not want a Hard Cap???????

At the very least there should be a spending ratio....Yankees spent $206 million to Pirates $34 million?  Uh, thats 9 times more than the bottom teams payroll?  In 2 or 3 years, the Yankees payroll will reach around $300 million because they will still be making money...Are these small-market teams that stupid?????

There is enough small-market owners that could stand up together for legitimate change, otherwise it's watch all the players go to a few teams, aka, what the NBA owners are trying to avoid.....

They are worried about draft spending??????? MLB owners must be getting ALOT of behind the scenes money to not make it a serious issue...



Since: Jul 9, 2009
Posted on: November 13, 2011 9:32 pm
 

Baseball on verge of labor agreement

plus it's not as if the Yankees been dominating draft spending in recent years. The Pirates spent the most on the 2011 draft, setting records in the process. The record Pittsburgh passed was not the Yankees, though. It was the Nationals. Other teams passed Washington's old record in 2011 too, including the Nationals themselves, Royals, Cubs, and Diamondbacks. Rays, Mariners, Padres, Blue Jays and Red Sox were the only other teams to top $10 million in spending.

Note: The Phillies are not on that list!

Think that that had anything to do with Chuck LaMar's in-season resignation as director of player development?  It's been rumored.


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