Confusion Still Reigns Over Possible Changes To MLB’s Pension Plan
Last week, ESPN’s Adam Rubin reported that Major League Baseball owners were considering a proposal to “eliminate pensions” of non-union personnel — everyone from scouts to secretaries who work in the general manager’s office. The story included a quote from MLB executive vice president Rob Manfred who said, essentially, that MLB wasn’t eliminating pensions entirely, but amending MLB’s program to allow teams “more flexibility.”
The story led to a great deal of hue and cry, and perhaps rightfully so: Baseball isn’t a distressed industry. Quite the contrary. As Forbes reported Wednesday, the average MLB team gained 23% in value over the last year, the result of a new $12.4 billion dollar national TV contract, skyrocketing local TV contracts and the revenues generated hand-over-fist by MLB Advanced Media. Manfred wasn’t willing to admit that certain owners are simply looking to spend less money on retirement benefits going forward — even in this era of immense prosperity in baseball — but it’s hard to draw a different conclusion.