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Leagues and Governing Bodies

MLB LABOR TALKS: UNION REJECTS OWNERS' LATEST PROPOSAL

     MLB labor negotiations resumed yesterday with the MLBPA
rejecting an ownership proposal that included two modifications -
- on service time and the second tax-free year at the end of the
deal -- "designed to appease a faction of management hard-
liners," according to the WASHINGTON POST.  The owners proposed
granting 75 days service time lost to the strike to all players,
except those 20 players who would become free agents with that
added time.  The owners also proposed retaining the union's
option for a sixth year in the deal, but making it $13M more
expensive to the players in the form of decreased playoff gate
revenue.  While union officials found both proposals
"disagreeable," Mark Maske cites sources on both sides who
"remained optimistic the deal could be completed by this weekend
or early next week" (WASHINGTON POST, 8/22).
     UNION REAX:  MLBPA Exec Dir Don Fehr:  "The clubs have known
for a long time what our position is on service. ... All the
negotiations and trade-offs made were made against a backdrop
that service would be a part of it.  When you monkey with it, you
upset the balance of the entire deal" (N.Y. TIMES, 8/22).  More
from Fehr:  "Obviously, the players are not going to take 20
players and leave them high and dry" (MILWAUKEE JOURNAL SENTINEL,
8/22).
     MANAGEMENT REAX:  Red Sox CEO John Harrington:  "We're
flexible on [service time].  It's not like we don't want to give.
Service time shouldn't be a deal-breaker where either side has to
have all or nothing" (NEWSDAY, 8/22).  Acting MLB Commissioner
Bud Selig:  "Let's see what happens.  We're back where we belong
-- at the bargaining table.  We need to finish off this deal"
(MILWAUKEE JOURNAL SENTINEL, 8/22).
     SERVICE TIME DEBATE:  The N.Y. TIMES' Murray Chass, on
owners' "adamant" opposition to the idea of granting service
time:  "Never mind" (N.Y. TIMES, 8/22).  In Milwaukee, Tom
Haudricourt writes that the owners moved the issue "from a
philosophic plane to a strictly financial one."  One management
source:  "Everybody says Don Fehr's not going to hurt 20 players
who can be free agents.  But are we supposed to hurt the five or
six clubs who will have to pay big money to their free agents or
lose them, when it was the players who walked out?" (MILWAUKEE
JOURNAL SENTINEL, 8/22).
     THE TAX-FREE YEAR:  USA TODAY outlines the owners' proposal
on Year 6 of the deal.  If the players exercise the option to
extend the deal to 2001 (with no luxury tax), their share of gate
receipts from the first three games of the Divisional Series and
first four games of the LCS and World Series would be 55% -- a
cost to the union of about $10M.  If the option is not exercised,
players get 80% from the first round and 65% from the LCS and
World Series -- a cost to owners of $10-15M (Hal Bodley, USA
TODAY, 8/22).
     SO, WHAT'S IT GONNA BE?  Murray Chass writes, "Once the
union [formally] rejects the management proposal, the owners are
expected to agree, albeit reluctantly, to give the players the
time and move ahead to completion of a new collective bargaining
agreement" (N.Y. TIMES, 8/22).

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