After Years of Profits, MLB Owners Ask Players to Subsidize Potential Losses
Six months ago, few people likely loved the status quo more than MLB Commissioner Rob Manfred and the group of owners who employ him. Having just completed the third year of a five-year Collective Bargaining Agreement with the players, baseball revenues continued to soar, with estimated profits during those years totaling $3.57 billion even before accounting for the $2 billion windfall from the BAMTech sale to Disney. Players saw their share of revenues shrink over those three years due to stagnant payrolls, and hoped for an opportunity to negotiate a better deal after the 2021 season. After years of huge profits under the current CBA, MLB owners are faced with the threat of potential losses, and according to reports from Evan Drellich, Ken Rosenthal, and Joel Sherman, the owners appear set to ask the players to subsidize those losses.
According to Rosenthal’s report, MLB wants to introduce revenue sharing for 2020 only:
Because games, at least initially, will be played without fans, the players would be asked to accept a further reduction in pay, most likely by agreeing to a set percentage of revenues for this season only.
The idea behind such a plan, from the league’s perspective, would be to protect the players and owners against the economic uncertainty created by the virus.
The players agreed in March to prorate their salaries in a shortened season. Those salaries cover the regular season only, while postseason shares are based upon gate receipts. If the players agreed to a set percentage of revenue, they also would share any additional national TV money generated during the postseason.




