Warranted or Ridiculous Money?

A wise man once said: “If you could buy him for what he’s worth and sell him for what he thinks he’s worth, you’d be a rich man.”

It is quite clear that whoever it was who first said this (or one of several variations of it) wasn’t the owner of a major league baseball team.

…or was he?

Over the past couple of weeks, Twitter has been loaded with reports, posts, and comments regarding the on-going negotiations between Major League Baseball and the Major League Baseball Players Association over salaries to be paid if/when a coronavirus virus-shortened 2020 season were to happen. As is usually the case when these two factions get together, they were not on the same page.

MLB – through Commissioner Rob Manfred and on behalf of team owners – is seeking a rather significant pro-rated reduction in pay across the board for all major leaguers for a shortened 2020 season, while the MLBPA – through union chief Tony Clark – is crying foul, claiming that a deal is a deal (i.e., a contract is a contract), COVID-19 pandemic be damned. And while there isn’t one single red-blooded baseball fan on the planet who doesn’t want our national pastime to resume posthaste, it is difficult for the average American with an average median annual income (as of December 2019) of $65,666 to wrap their head around the fact that the MLB minimum salary for the 2020 and 2021 seasons is $555,000, plus guaranteed cost-of-living increases. (Source: Sentier Research and Cot’s Baseball Contracts).

MLBPA union chief Tony Clark is definitely caught between a rock and a hard place trying to come up with a workable prorated salary plan for a COVID-19-shortened season (if there is one) with MLB commissioner Rob Manfred. (Photo courtesy of MLBPA)

Obviously, the aforementioned MLB minimum salary applies only to pre-arbitration players and most certainly not to those who have signed (very lofty) free-agent contracts which make up the majority of all 30 MLB teams. In fact, as of this writing, the current highest-paid major leaguer is Mike Trout (as he should be) with a current 12-year contract that runs through the 2030 season to the tune of $426,500,000. The extremely popular Angels centerfielder is under contract to receive $36 million in 2020.

There is no disputing that Mike Trout is the Babe Ruth of our generation.
(Video capture courtesy of Fox Sports)

Needless to say and to be brutally honest, it would be difficult for anyone to spend $36 million in a year; or even $10 million, for that matter (although I would certainly like to have a go at it). That being said, contracts such as Trout’s and the many other multimillionaires in today’s game have comfort in knowing that their children’s children’s children (etc.) will be financially set for generations to come.

The problem, of course, is that, to this point, there isn’t a 2020 season and quite possibly might not be one due to the current COVID-19 pandemic facing the entire planet; a pandemic which, to date, has no cure or even a vaccine.

The point to all of this is that while Tony Clark and the MLBPA are currently in negotiations with Rob Manfred and MLB to work out some type of prorated salary compromise for a COVID-19-shortened 2020 season (if there is one), the current 750 players on the 30 MLB active rosters are making ridiculously more money than the average American. In other words, those 750 major leaguers probably shouldn’t look for much sympathy from the other 328.2 million people living in the United States (as of 2019) who make up that $65,666 average American median annual income.

Fire away.

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16 Responses to “Warranted or Ridiculous Money?”

  1. Bob says:

    OK, Mr. Clark, a contract is a contract. So they pay all the players regardless of the loss of income to the team.
    So, after the bankruptcies, how many MLB jobs will exist next year?
    I think cranius rectus is harder to cure than COVID 19.

    • Lasorda says:

      Completely out of touch and “tone deaf” if MLB players and the union that represents them (MLBPA) think they should be paid in-full for a covid-19 shortened season that won’t have fans in attendance and no concession or parking revenue. Yes, MLB owners are wealthy, but they should not have to pay the full amount of contracts based solely upon TV revenue.

      As some Americans have lost their jobs and others are making a decision between food for their families, the mortgage payment or the electric bill, MLB players are expecting full payment. If that is the only option, Manfred should cancel the entire season right now which means players make noting this year.

      While I’m certain most players can continue to live comfortably without a paycheck for a season it seems short-sighted and narrow-minded to think they should be paid their full contract amount.

      I think about the 5,000 sailors on the USS Roosevelt, the nurses and doctors, the police officers who come into contact everyday across America with thousands of people who may be infected. Yet, they do it everyday knowing the risks because they have a servant’s heart, a calling to help others and to bring order out of chaos. And yet, they come back and do it again the next day, not for millions, not for a shoe deal or a commercial, but instead out of a devotion to serve others and to honor their oath.

      My advice to the players is to take a pay reduction for this season if for no other reason than to to help America be entertained from this pandemic, a return to normalcy. Be a hero in a young kids eye or risk further alienating yourselves from mainstream Americans by being selfish and arrogant.

      • Ron Cervenka says:

        Excellent reply, Lasorda.

        I vividly recall the utter terror during the 6.7 Northridge earthquake on January 17, 1994, and having to leave my terrified pregnant wife and eight-year-old daughter and making a treacherous drive into work at Burbank PD (under the collapsed 5/14 interchange) and never thinking twice about it. Although a detective at the time, we threw on jumpsuits and hit the streets to handle the many calls for service. We did so for almost a week and actually slept at the station.

        The kids out there today are doing a remarkable job while putting themselves in harm’s way on EVERY call. So, too, firefighters and paramedics.

  2. Marcia Cohee says:

    Most people forget that the players have already agreed to a 50 percent salary cut. They are risking their lives, long-term health and their families are doing likewise. MLB baseball made over ten billion last year, and has never shared their profits with the players. And MLB has never shared their finances with the MLBPA, to substantiate their claims of “losing” money. There’s much more to say, but the owners aren’t really losing money long-term.

    • Bob says:

      “Most people forget that the players have already agreed to a 50 percent salary cut.” I reckon I’m one of them. When was that? Just today I saw it as a proposal MLB is making.
      “MLB baseball. . . . . .has never shared their profits with the players.” Silly me, I always thought the money for payroll came from the profits.

    • SoCalBum says:

      players paid through May by MLB; thereafter pay is prorated based on regular season games played. If MLB plays 81 games then players get 50% of their salary plus what they were paid for April and May

  3. baseball1439 says:

    Is anyone surprised how these negotiations are proceeding?

  4. Daniel says:

    Ron I agree w you. But can you explain why they are talking about this when there was already an agreement a month or so ago? I thought that agreement was to pay players a certain percentage of their contract wether they had a season or not and also clarified the service time.

    • Ron Cervenka says:

      I cannot.

      I appreciate the fact that both sides are willing to (apparently) be flexible during these unprecedented times, but to use a popular phrase: “That ship has already sailed.”

      It’s going to be an interesting next couple of weeks; that you can be sure of.

  5. SoCalBum says:

    On March 27 it was announced that MLB and the Players Association reached agreement on salaries for 2020 with MLB agreeing to pay $170M for salaries through May. Any other pay would be prorated based on regular season games played. It isn’t the union’s problem that MLB leadership and owners agreed to the deal that also included service time, and significantly reduced 2020 rule 4 draft.

    Apparently MLB is attempting to further reduce player compensation, but the only way the union will agree is in return for other considerations.

    By the way, what about the minor league players who will not be paid in 2020 if there is no minor league season (which is very likely)?

  6. Boxout7 says:

    Seems to me that it behooves both sides to give.

    MLB teams must be bleeding cash, large fixed overhead without any revenue. I wouldn’t be surprised to see many teams filing for bankruptcy protection.

    MLB owners and players suffered a major black eye with the cheating scandal and how they handled it. Now with the virus they’ve been hit with a major body blow.

    Millions of people are finding out they don’t need professional sports in their lives. The shutdown of our economy has cost people trillions, buying MLB tickets and gear are going to be way down the list for many. Both the owners and players need to understand they better work together to keep the BIG money rolling in.

    • Jesse Pearce says:

      Excellent points! Right now both sides are posturing with Scott Boras making statements as if he were part of the union negotiating team. I am confident that the sides will reach agreement as canceling season hurts both MLB and players. MLB in difficult bargaining position in that an argument of inability to pay could lead to a union demand to open the financial books.

  7. Uncle Ned says:

    Blake Snell says he won’t play for less than his full yearly salary, saying ‘it’s not worth the risk’.

    On behalf of hospital workers, veteran and senior citizen home staff, truckers, LEO, grocery store workers and others who risked their health and lives and never asked for an extra dime, piss off, Snell.

    Bryce Harper supports Snell’s statement. The first Dodger that does, I’m done.

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