Baseball's owners "overwhelmingly" approved a modified
revenue-sharing plan, with the hope that it could be a "catalyst"
for a new CBA with the players. The two-year plan, adopted on an
interim basis, would transfer about $39M from 13 high-revenue
clubs to 13 low-revenue clubs in the first year. The vote passed
26-1-1, with the Mets' Fred Wilpon voting "no" and the O's Peter
Angelos abstaining. In New York, Murray Chass notes acting MLB
Commissioner Bud Selig "has become a master at mustering one-
sided positive votes among the owners" (N.Y. TIMES, 3/22).
Angelos' and Wilpon's concerns were about approving a plan before
a new labor deal is in place (Peter Schmuck, Baltimore SUN,
3/22).
DETAILS: Sources said the plan would increase the subsidy
to "needy" clubs to about $58M in its second season. Under the
formula, according to the WASHINGTON POST, each team would pay
15% of local revenues into a central revenue-sharing fund -- 85%
of which would be distributed to all clubs, with the other 15%
divided among the lowest-revenue teams. Under current
projections, seven clubs would pay and seven would receive funds
this year (Mark Maske, WASHINGTON POST, 3/22). The "key change"
from a plan presented to owners two months ago, according to
Murray Chass, is a reduction in the amount the "hardest-hit"
clubs would pay. For example, the Yankees' contribution dropped
from nearly $7.5M under the initial plan to about $5.8M (N.Y.
TIMES, 3/22). Only 60% of total team revenues -- minus stadium
expenses -- will be involved (Hal Bodley, USA TODAY, 3/22).
SUPERSTATION ACCORD: The owners also reached agreement on
fees from cable superstations for the '94 and '95 seasons, but no
details were available (N.Y. TIMES, 3/22). Selig: "I know it
looked like side issues could become dominant, but they didn't.
That speaks volumes of where we are as a group and where we are
as an industry" (Tom Haudricourt, MILWAUKEE JOURNAL SENTINEL,
3/22).
UNION REAX: The MLBPA must approve the plan in order for it
to go into effect this season. MLBPA Exec Dir Don Fehr: "I
haven't seen it yet, but as a general rule, it would be a better
idea for (the owners) to consult with us first before they make
their plans." Selig "downplayed" that response, saying the union
has had a "good idea all along" on details (Bob McManaman,
ARIZONA REPUBLIC, 3/22). The WASHINGTON POST quotes Fehr as
saying he liked the proposal more than previous plans (WASHINGTON
POST, 3/22).
SMALL-MARKET REJOICING: In K.C., Jeffrey Flanagan writes,
"It could be a profound step toward keeping the Royals in Kansas
City." Royals President Mike Herman: "The percentage of revenue
that is filtered back to us won't be great this year, but I don't
want to sound ungrateful. That figure will go up in years to
come, and that, with increased attendance, will allow us to keep
payrolls up and keep our good young players." Herman estimated,
with approximately $1.8M from revenue-sharing, they still need to
draw 2.4 million fans to break even. The team drew 1.7 million
in '95 (K.C. STAR, 3/22). With revenue-sharing, the focus on the
Expos' "long-term survival" shifts to local factors -- a better
lease and new retractable roof, according to Expos President
Claude Brochu. He predicted "five, six, seven or maybe eight
golden years" if revenue-sharing is part of a long-term labor
deal. Brochu: "It's an incredible step, one of the best things
that has happened in the past 20 years" (OTTAWA CITIZEN, 3/22).
Astros Owner Drayton McLane, who stands to gain about $2.5M:
"Revenue sharing is as important as salary controls" (HOUSTON
CHRONICLE, 3/22).
