Menu
Leagues and Governing Bodies

MLB Questions Continue With Big Contracts, Possible Labor Fight

Some players feel that only superstars like Trout get the money they actually deserve from teamsGETTY IMAGES

Mike Trout's 12-year, $426.5M extension with the Angels raises a question of how a sport that is "struggling to attract a new generation of fans, and that is facing a potentially bruising labor fight with its players in two years," can afford "yet another nine-figure contract," according to Kevin Draper of the N.Y. TIMES. The answer has "more to do with the mechanics" of the CBA than with "anything that might constitute a referendum on the game's popularity." There are "several dynamics at work in the sport, where huge wealth still flows to the best of the best." Owners have "figured out how to keep costs down by using younger players, who are cheaper than veterans, thus freeing up cash for the occasional megadeal." MLB revenue reached $10.3B in '18, with teams "earning evermore money from guaranteed sources." Meanwhile, player salaries have gone up on average 5.3% each year since '12. However, words like "'collusion' and 'strike'" now are "regularly uttered by players and agents." The problem now, at least as articulated by players, is that while teams "reward superstars, they no longer feel compelled to spend to win if they do not believe they already have the pieces in place to compete for a championship" (N.Y. TIMES, 3/21). The WALL STREET JOURNAL's Jason Gay wrote under the header, "Is $430 Million All It's Cracked Up To Be?" (WSJ.com, 3/20).

CULTURE OF APATHY: MLBPA Exec Dir Tony Clark said that while he "understands teams such as the Orioles might have to 'recycle or rebuild,' he remains concerned that the decision to delay fan gratification could threaten the viability of some of those franchises." The Orioles won only 47 games last year, and Clark said, "Having multiple teams determine that they're three, four, five years from competing in a climate when the spending of those entertainment dollars is being challenged because of other options that are there." Clark said he also worries fans will take the attitude that, "Well, if we're going to be competitive in three or four years, I'll come back in three or four years" (BALTIMORE SUN, 3/21).

UNION MATTERS: THE ATHLETIC's Rob Biertempfel noted there has been "no kiss-and-make up" between the MLBPA and the Pirates after the union filed a grievance against the team "claiming they misused revenue-sharing money" during the '17 season. There has not been "any overt activity about the case over the past 13 months." On Tuesday, Clark said the grievance is "ongoing," but did not disclose any details (THEATHLETIC.com, 3/19).

SBJ Morning Buzzcast: April 25, 2024

Motor City's big weekend; Kevin Warren's big bet; Bill Belichick's big makeover and the WNBA's big week continues

TNT’s Stan Van Gundy, ESPN’s Tim Reed, NBA Playoffs and NFL Draft

On this week’s pod, SBJ’s Austin Karp has two Big Get interviews. The first is with TNT’s Stan Van Gundy as he breaks down the NBA Playoffs from the booth. Later in the show, we hear from ESPN’s VP of Programming and Acquisitions Tim Reed as the NFL Draft gets set to kick off on Thursday night in Motown. SBJ’s Tom Friend also joins the show to share his insights into NBA viewership trends.

SBJ I Factor: Molly Mazzolini

SBJ I Factor features an interview with Molly Mazzolini. Elevate's Senior Operating Advisor – Design + Strategic Alliances chats with SBJ’s Ross Nethery about the power of taking chances. Mazzolini is a member of the SBJ Game Changers Class of 2016. She shares stories of her career including co-founding sports design consultancy Infinite Scale career journey and how a chance encounter while working at a stationery store launched her career in the sports industry. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2019/03/21/Leagues-and-Governing-Bodies/MLB.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2019/03/21/Leagues-and-Governing-Bodies/MLB.aspx

CLOSE