MLB Owners’ Latest Offer Even Worse Than the Last One
Prior to today, MLB owners had made one offer to the Major League Baseball Players Association to resume the season, one that included a renegotiation of the pro-rated player pay agreed to back in March. That proposal, made on May 26, was for 82 games and included about $1 billion in pay cuts from the March agreement. The offer seemed to unite the players rather than divide them, and five days later, the MLBPA proposed to play 114 games with expanded playoffs over the next two years. MLB has floated a 48-game schedule at full pro-rated pay, but never made that offer. Now, more than a week after the players made their proposal, the owners have responded with a proposal that’s somehow worse than their offer from two weeks ago.
As Karl Ravech first reported, the owners made an offer for 75% of pro-rated salaries for 76 games. He noted that the deal came with playoff pool money and that draft compensation for free agents would be eliminated. Jared Diamond reported that players were only guaranteed 50% of their pro-rated pay and would need to complete the playoffs to receive the rest. Diamond further reported that 20% of the $170 million advance would be forgiven. While the free agent compensation issue isn’t nothing, given the likely market climate this winter and the potential reduction in qualifying offers to begin with, it’s not clear how much this will actually benefit players. Overall, this offer is likely to be another unfortunate setback in the negotiations between the players and the owners, as it guarantees players less money than the owners’ other offer and pays them no more money upon completion of the playoffs.
Here’s a quick comparison of the 82-game offer with heavily decreased salaries compared to the 76-game plan with 75% pro-rated pay upon completion of the playoffs. The numbers include around $200 million in mostly fixed costs for player buyouts, pro-rated signing bonuses, and money still owed to players who have already been released; the per game amounts for pro-rated pay come from Jeff Passan’s piece last week:
| Proposal | 75% Pro-rated-76 G | High-Salary Cut-82 |
|---|---|---|
| No Playoffs | $1.17 B | $1.25 B |
| With Playoffs | $1.65 B | $1.45 B |


