Contentious talks over the start of this season foreshadow the challenges expected with the next CBA deal.getty images
The MLB Players Association is building up a strong war chest in advance of next year’s collective-bargaining agreement negotiations, as the union’s net assets increased 70%, from $77,533,886 to $132,467,140 last year.
The MLBPA’s total assets grew from $108,532,281 to $165,919,088 for the year ended Dec. 31, 2019, according to the annual report the union filed with the U.S. Department of Labor. Liabilities grew from $30,998,395 to $33,451,948.
The MLB CBA expires in December 2021 and, as previously reported, MLB players voted in November 2018 to withhold all of the money they would otherwise receive from group licensing to build the union’s assets. The MLBPA typically withholds dues refunds and licensing money in advance of bargaining and next year is expected to include contentious negotiations.
MLBPA Executive Director Tony Clark is the highest-paid union official, earning $2,250,000 last year, a bump of $100,000 over his salary the previous year, according to the filing.
Bruce Meyer, MLBPA senior director, collective bargaining and legal, earned a salary of $1 million for his first year on the job. Meyer joined the MLBPA from the NHL Players’ Association, where he worked after a long career as a partner representing unions at national law firm Weil, where he worked as outside counsel for multiple unions.
This is the first public financial report for the union since it pooled its player marketing assets with the NFL Players Association to form OneTeam Capital Partners in November 2019.
The MLBPA’s filing reflects two licensing revenue payments totaling $11,836,158 from OneTeam Partners, both paid on Dec. 12, 2019. It was not clear if this was a one-time payment to the union from the new company or a monthly or quarterly payment. The union declined comment on its financial report.
The filing showed that the MLBPA hired a variety of experts to advise and otherwise work on the deal to join OneTeam. The firm is owned by the MLBPA, NFLPA and investor Gerry Cardinale’s RedBird Capital Partners.
Law firms Weil, Sidley Austin and Groom Law Group were paid to work on the Red Bird-One Team transaction, according to the union filing. Weil was paid $1,640,000; Groom received $214,710; and Sidley Austin was paid $6,850.
Specialty adviser Houlihan Lokey Capital was paid $202,474 and specialty adviser ZBS Enterprises was paid $247,847 to work on the deal. Accounting firm Mazars USA was paid $7,503 to work on OneTeam business.
For the first time, the union disclosed money paid to the union for the purpose of “agent discipline.” New York-based Legacy Agency made four payments, totaling $323,000, for agent discipline. Miami-based Infiniti Sports Management paid $10,000 for agent discipline.
■ PARAGON SIGNS MORELAND: Paragon Sports has signed Boston Red Sox first baseman Mitch Moreland for representation in all areas. Paragon founder and MLB player agent Joe Longo and marketing agent Bill Sanders will represent him. He was formerly represented by Bash Baseball.
Moreland, 34, is a World Series champion, an All-Star and a Gold Glove winner. He’s playing on a one-year deal with a club option.
“He wants us to help him with legacy work,” Sanders said. “He doesn’t just want some traditional marketing from us — go find him some deals. He actually wants us to start guiding him in the direction that he can pursue when he decides to hang up the cleats. That may be five years from now, but we will start now.”
Paragon is based in Santa Monica, Calif., and represents MLB players including Milwaukee Brewers slugger Christian Yelich, Philadelphia Phillies pitcher Aaron Nola, and New York Mets third baseman Jeff McNeil. The agency also represents or advises several up-and-coming prospects including catcher Tyler Soderstrom, the Oakland A’s 2020 first round pick.
Liz Mullen can be reached at lmullen@sportsbusinessjournal.com. Follow her on Twitter @SBJLizMullen.
