MLB Lockout: A Run Down
MLB Commissioner Rob Manfred via NY Daily News
The 2021-2022 MLB offseason came to a halt on December 2, 2021. Since then, we’ve seen three official meetings. Most recently, two meetings in back-to-back days. There hasn’t been much movement, if any at all, but the two most recent meetings give us fans a breath of fresh air. MLB agreed to accept parameters of a pre-arbitration bonus pool for the top 30 players in WAR (wins above replacement). MLB also withdrew their offer to change the arbitration structure. Finally, owners offered a minimum raise in salary to $615K with the MLBPA (Players Association) wanting $775K. Although the $615K that MLB countered with is a step in the right direction, this could be an occurring issue. In 2021, out of the four major sports, MLB had the lowest minimum salary with $570,500. The NFL was $660,000, the NHL with $750,000, and the NBA with $925,258.
MLB Wants
Major League Baseball and its owners are led by none other than Rob Manfred, commissioner of baseball. MLB wants a few changes in the new CBA agreement. They want a 154-game season with expanded playoffs and the Universal DH. Most of the disagreements coming from this side is the fact of paying players earlier and the free agency market. The owners seem to not want to budge on the arbitration system as well as the way free agency works. Most owners feel they pay the players enough and wants the players to give some slack when it comes to the new CBA agreement.
MLBPA Wants
The Major League Players Association feels there needs to be some major changes with the new CBA. MLBPA wants fixed tanking, revised arbitration, revised free agency, and the luxury tax raised. They feel lower market teams are tanking to get more revenue sharing. Revenue sharing in baseball is when the larger market teams put 31% of their local revenue into a pot and gets split up to the lower market teams, giving the owners more money. They also want the arbitration process to start earlier to give young players a chance to get paid earlier. With the free agency starting after five years, like they want, it would give older players a chance to get paid as well. Taking Aaron Judge for example, he is entering his first free agency in 2023 at the age of 30. That does not sit well with the MLBPA.
Key Issues
The biggest issues between the two sides comes down to money. The players want more money, and the owners don’t want to pay more money. Both sides need to realize holding this off much longer will cause a loss in of money for both sides, the very reason this agreement hasn’t been reached. Major League Baseball as a whole, has seen a raise of revenue, due to inflation, over the last ten years. The luxury tax has raised with it, but not as much as you would think. From the years of 2011 to 2019, the revenue started at $6.3 billion and ended at $10.7 billion. Giving the math behind those numbers, MLB’s revenue from those years stated raised 70% with the luxury tax going from $178 million to $206 million being raised by only 15%. With those numbers, the owners are bringing in more than they are dishing out.
By raising the luxury tax, this will fix the tanking side of owners by forcing them to spend more. The idea behind a higher luxury tax is for better competitiveness. Obviously, the bigger market teams will take advantage of the higher luxury tax, but with them spending more, the smaller market teams will get more in revenue from those said higher market teams. Stated before, 31% of local revenue gets put into a pot and split up. Most of that revenue comes from bigger market teams such as the Yankees and Dodgers. On top of all the money the Yankees make from games, merchandise, tickets, etc. they also collect the money from YES Network. Smaller market teams such as the Pirates, don’t even touch the surface of the kind of money the Yankees have. That is why teams like the Pirates collect 31% of local revenue from teams like the Yankees.
When it comes to other issues, minor leaguers are a prime example. We only recently seen MLB step in and help minor leaguers with housing and dining. The players have a problem with some of these minor leaguers coming up through the system, putting up great numbers, and not getting paid. Take Juan Soto for example, who earned $15.5 million in his ARB 2 hearing. In 2019, Soto batted .282 with a .949 OPS and blasted 34 HR all while making $578,300. He was an outstanding player in 2019 and is now regarded as the best right fielder in baseball. There is no doubt Soto will receive his much-deserved payday, but if he were to fall off by the time his free agency hits, he would miss out on a historic paycheck. This can happen to any youngster in the league and the players feel the owners are taking advantage of that. By fixing the arbitration process as well as free agency, it gives the players the best shot at getting paid to their full potential.
Get Back to the Game
Baseball is America’s national pastime. Sadly, the game is losing more and more interest every year. People deem baseball as an old game and too slow. Luckily, baseball has some diehard fans that are still here. MLB and the MLBPA need to realize this could end up bad for both sides. With the popularity of baseball already at question, a deal needs to be reached soon before they start losing the diehards. This comes down to billionaires and millionaires arguing over money. MLB needs to focus less on money and the players need to understand they can’t get everything they want right now. While both sides have valid points, both need to come to the realization that the game’s future is in jeopardy. They got a taste of what that could be like with the shortened 2020 season we saw due to the pandemic. MLB needs to focus on highlighting the big-name players to draw in more attention. Guys like Shohei Ohtani, Fernando Tatis Jr., Jacob DeGrom, Bryce Harper, and Aaron Judge for example, the ones who are great role models to kids and baseball fans across the world. The good of the game needs to be shown again.