MLB and the MLBPA Have Made Their Opening Offers

It’s May 29, roughly two full months into the regular season, which means, given the year, that it’s time for everyone’s favorite pastime: parsing competing proposals for a new collective bargaining agreement. Wednesday, the MLBPA released its first proposal for a new agreement. Thursday, MLB followed suit with a proposal of its own. Both are best thought of as opening offers, likely to be heavily modified as the negotiations heat up ahead of the existing agreement’s December 1 expiration. But that doesn’t mean that they’re meaningless. I think these early offers are revealing of what each side cares about most. The specific numbers quoted are unlikely to survive multiple rounds of bargaining, but the concepts and structures that each side favors at this stage could tell us a lot about what an eventual compromise looks like. So without getting too bogged down in the details, let’s peruse both proposals and try to tease out what each side is trying to accomplish.
The MLBPA’s Proposal
The players’ first salvo focuses on two things: revenue sharing and early-career pay. Revenue sharing is going to be a key point of discussion in this negotiation. The league has raised competitive balance concerns for years, and it’s clear that there’s public interest in leveling the playing field. Collectively bargained labor agreements don’t solely play out in the court of public opinion, but making the sport more interesting and marketable is a benefit for both sides, so a more balanced system of distributing revenue seems like a clear path towards sustaining the game’s recent growth.
The central piece of the MLBPA revenue sharing proposal is a redistribution of TV money. Currently, teams share a flat 48% of all local revenue, TV included. The MLBPA proposal would change that significantly. In their framework, the first $50 million from each team’s local TV contract, and two-thirds of the amount above $50 million, would be pooled centrally, along with all national TV revenue. Read the rest of this entry »








