CBA Musings (1/7): What’s Happening and What’s Next

[Ted Schwerzler]

This space has been on pause the past few weeks because baseball has done absolutely nothing. This week that changed a bit, but I’m not sure it was for the better. We’re farther away from MLB’s return, and now worse off for it.

Earlier this week one of the best reporters in the game, Ken Rosenthal, was let go from MLB Network. This stems from his criticism (and that should be used lightly) of overlord Rob Manfred. Major League Baseball’s commissioner is a steward of the owners, and while he actively seeks to line their pockets, he doesn’t need anyone on his airwaves sowing doubt about his leadership. Rosenthal is still employed by The Athletic (who was just recently acquired by the New York Times) and Fox. Seeing players rally in support of Rosenthal was a great thing as well.

On Wednesday a piece was penned by ESPN’s Jeff Passan in relation to the state of baseball’s CBA issues. Some of the highlights, or maybe lowlights, don’t paint a pretty picture at all. We’re closer to Spring Training and yet the sides have not had a single meeting to suggest any sort of progress. A source was frank to Passan in simply stating, “What the (expletive) are we doing?”

Passan talks about the decreasing optimism among those in the know that there will be a full season. The last discussion lasted just seven minutes, and we saw these two sides struggle mightily when it came to generating an agreement for 2020. Ultimately Manfred implemented a 60-game season, but that was due to the outlined agreements within the CBA rather than a compromise between both parties.

As has been the case from the beginning most within the sport don’t see the sides coming together until later this month. With Spring Training being just weeks away at that point, you can all but guarantee time will be missed there. The problem, as Passan outlines, is that the issues surrounding the CBA are far more contentious than those discussed during the Covid-shortened 2020, and will need a much longer runway. There’s a way to work through them, but if Manfred’s letter to fans after locking out the players was any indication, he doesn’t appear willing to do so in good faith. This excerpt from Passan’s piece couldn’t be more spot on:

Quote

“They're asking for earlier free agency, earlier arbitration, a rejiggered draft system, more money going to younger players, a higher minimum salary, less revenue sharing and a higher luxury tax threshold, among other things. These are major changes, but not necessarily paradigm-shifting ones -- even though Manfred, in a letter to fans posted immediately after he locked out the players, dramatically claimed they "would threaten the ability of most teams to be competitive." (He provided no evidence to support the idea that players becoming free agents after five years or reaching arbitration after two years would ruin the sport -- because no such evidence exists. All is fair in labor war -- including bogeymanning.)”

While the players continue to be frustrated with ownership as spending dips and the Competitive Balance Tax is used as a soft cap, ownership wants no part of granting players free agency sooner or relinquishing control over cost effectiveness. A source told Passan, "The only thing that's gonna move either side is mutual assured destruction."

The piece goes into an avenue where a CBA could take both sides, and while each needs to make concessions, the reality is that there’s a ton to work through. A deal not being close by February 1 would almost assuredly cancel Spring Training games. A handful of free agents still need to be signed, and a sport with many foreign players needs runway for Visas and travel arrangements to be made. Should things not be agreed to by May 1, we’re going to see the first substantial work stopped since the 1994-95 calendar.

It’s on both sides to fix this, but make no mistake, this will be Rob Manfred’s legacy.

Do you think we see Spring Training start on time? How about whether regular season games are missed?

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[Game7-91]

We need the school of Don Corleone mediation techniques to get these bozos off the dime.

 

 

[mikelink45]

I have not had any good feelings about Manfred for the last 3 years. His posture is one of an overlord and yet he is supposed to be the commissioner of baseball representing all sides. 

I am really disappointed. Everyone saw this coming and there could have been true discussion throughout the covid. Instead of using that as an excuse for not negotiating. 

Of course Manfred like selig and other worthless commissioners will get in the Hall of Fame and they will ride off into the future feeling like they really were special. 

[tony&rodney]

This is not about money for the owners, it is about power. Any owner can produce a budget that reflects income minus costs to leave the bottom line reasonably close to their desired line. If certain owners feel that the business of baseball ownership is not worth their investment they could sell their position in a heartbeat. If the owners feel as a group that there needs to be some sharing of economic resources for a common purpose, they need to work those details out within their consortium of MLB owners.

The PA has a concern for those players whose careers are still worthy due to production who are set aside for players working at the minimum salary. The idea of a franchise tanking does not sit well with the PA even as it offers economic benefits and a chance to regroup to an owner. The minimum wage players also offer a chance for improved production in the future, but this comes at a short term cost of less competitive baseball, in some views. Their other concerns are mostly undefined. A shortened time, perhaps small, before arbitration and a year less of control should create some movement in bargaining. I wonder if the PA might consider a significant raise in the initial three years of team control as a benefit for their members.

A prolonged work stoppage and the interruption of the MLB season will cost both sides, but be particularly difficult for those players whose careers are short. The system currently in place cannot just be blown up and looking to other professional leagues is problematic at best. The PA should be focused on the average salary rising at a commensurate level with baseball's growth in revenues and owners should be focused on the growth of their investment through attendance and fan participation (media).

Currently, it seems, both sides are looking past each other and seem short-sighted in regards to growing baseball as a product. As just one example, I would think that the PA would be interested in seeing MLB expand by two teams in the near future. Two additional markets would also benefit the owners.

In any event, if the two sides are actually interested in a quick resolution there is ample time for discussion and a host of ideas to exchange to resolve the current chasm. The importance of peace seems particularly important in light of 2020 and the lost participation of fans due to Covid. Any significant further loss of games will find a wider public populace increasingly comfortable with their own summer activities that do not include MLB. It is much easier to find something to do on a beautiful summer evening than during the cold darkness of a January night.

[Whitey333]

Well thought out response.  I've followed the Twins and MLB for nearly 60 years.  Yes that makes me old.  But not too old to remember when the game was the number one sport and a pleasure to watch and follow.  The game has become nearly unwatchable the past few years.  The fact the players and owners knew this was coming a couple of years ago had plenty of time to work out a new deal.  Yes it's cliche but true: Billionaire owners arguing with millionaire ballplayers.  It's ridiculous.  These people think that they are the only thing that matters in our lives.  Most people live in the real world.  Working for a living for them and their families not living in a fantasy world of professional high priced sports in this case MLB.  I may be the only one.  But if there is a delay in the season or loss of games due to a work stoppage I think it will never rebound this time.  At least they won't have me anymore.  These owners and players care ONLY for themselves.  Fans? Who cares?  We are just used as pawns.

[Blyleven2011]

Manfred ,,, what a crock and that's being nice because I could say he is an idiot but I would get fired 

[RJA]

I just hope the better angels of their nature come to the forefront and both sides do what is best for baseball and the fans.  Even though it is a business, I really believe most players and owners love the game.  Let's hope they negotiate like they do.

[gman]

It would have been nice to think that Spring Training was only 6 weeks away. I will be watching more minor league baseball this year. Which may be good, considering that many of the best players won't be promoted to the major leagues any time soon.

[Major League Ready]

18 hours ago, tony&rodney said:

This is not about money for the owners, it is about power. Any owner can produce a budget that reflects income minus costs to leave the bottom line reasonably close to their desired line. If certain owners feel that the business of baseball ownership is not worth their investment they could sell their position in a heartbeat. If the owners feel as a group that there needs to be some sharing of economic resources for a common purpose, they need to work those details out within their consortium of MLB owners.

I have had basically the same thought about this whole situation.  You make a very good point.  Owners are not going to spend because the super two rules change or free agency becomes shorter or even as a result of increased minimum salary.  They have a high degree of control over the bottom line so long as revenue does not go down which is why I don't agree it's about power.  I believe like many others here that the large markets already have an enormous advantage.  The owners have offered a reasonable solution to most of the demands.  The impasse is shortening, reducing revenue sharing, and the amount of increase to the luxury tax.  The players demand would elevate the already large competitive advantage for top revenue market.

Eliminate a year of control and the top players in bottom half markets all end up in the top markets a year earlier.  Taking away revenue sharing while raising the luxury tax to any significant degree obviously increases the current level of competitive disparity which is already threatening the product on the field.  These things together should  have any fan of teams in the bottom half of revenue saying hell no.

[Old Twins Cap]

The only leverage the owners have is the MLBPA getting complaints from players who are having to go without salaries.  These guys have mortgages, families, training costs.

Once the lack of money starts to bite, you will see players breaking away from the party line.

Which is why, for sure, there will be a late start to the season.  The owners can't get what they want without inflicting pain on the players to the point of winning concessions.

Hurry up and wait.

[mikelink45]

On 1/8/2022 at 7:24 AM, Whitey333 said:

Well thought out response.  I've followed the Twins and MLB for nearly 60 years.  Yes that makes me old.  But not too old to remember when the game was the number one sport and a pleasure to watch and follow.  The game has become nearly unwatchable the past few years.  The fact the players and owners knew this was coming a couple of years ago had plenty of time to work out a new deal.  Yes it's cliche but true: Billionaire owners arguing with millionaire ballplayers.  It's ridiculous.  These people think that they are the only thing that matters in our lives.  Most people live in the real world.  Working for a living for them and their families not living in a fantasy world of professional high priced sports in this case MLB.  I may be the only one.  But if there is a delay in the season or loss of games due to a work stoppage I think it will never rebound this time.  At least they won't have me anymore.  These owners and players care ONLY for themselves.  Fans? Who cares?  We are just used as pawns.

Maybe TD needs to start a new section for us old guys.  They could call it, "I remember when".  Like you I enjoyed the old brand of baseball - complete games, stolen bases, positions that were understood, launch angle and spin rate non-existent, and bullpen guys were failed starters who filled in when needed except for Wilhelm because he could do both well. 

[Trov]

I have long said both sides are at fault for this. This was long time coming and neither side was willing to make steps to help.  This will not be a short lockout.  I expect many games to be missed. The players are upset and believe owners are taking too much of revenue.  I have heard some players want to claim non-baseball derived revenue in that as well, like owners that own property around the stadiums and make money off of that.  Personally, I do not think that should be included, what if the player owned say a bar next to the park, should he then pay some of his money he earns from it to other players? 

Owners are sick of paying huge contracts to guys that are no where close to earning it, and small market owners worry that some of the changes players want will cause them to be even more bottom feeders with smaller windows.  

Both sides are trying to win this lockout, and have resorted to trying to get fans on their side.  For most part, I think fans do not care who wins they just want baseball to be played.  Normally, I would say labor has advantage over ownership in any labor dispute.  However, in this case I believe owners have the power overall. 

I say this because unlike in a normal industry where the owners make their money primary on that business or have stock holders they need to account to, in baseball, just about all teams are privately owned, I believe Braves have public ownership, and the owners make money from other industries.  Meaning, if they just closed up shop they would not be earning no money.  I am sure there are some losses they would have to deal with, but it is not like owner would homeless and not getting money from other sources. 

Where players if they are not playing have to either fall back on investments if they have them, or go work other jobs.  Unless they have earned life changing money they will have to find jobs somewhere at some point.  Owners can wait them out if they want to "win" the lockout.

However, as each side tries to win the lockout, both sides lose.  Fans get upset and will spend their money on other things.  Who else loses are the rank and file employees of the teams.  The ticket sale people, the game day workers, and the businesses that rely on game day traffic to survive.  The players and owners fight over how to divide up billions of dollars, while some people that live pay check to paycheck wonder if they will have a job. 

Both sides look terrible the more they try to get fans to jump on their side.  Both sides really need to sit down and have real talks and lay out their issues and try to find some common ground.