Examining the Economics of MLB’s Latest Proposal to the Players
On Tuesday, MLB delivered its first economic proposal concerning player pay to the MLBPA since the two sides reached an agreement in March. There were reports that owners had previously agreed to propose a 50/50 split of revenue for what looks to be an abbreviated season played to empty ballparks, but after that potential offer leaked, it was never formally proposed due to the negative public response from the union. MLB’s actual proposal, which includes a paycut for all players from the prior pro-rated agreement in March, was particularly harsh to those making the most money, as the proposed cuts were on a sliding scale with the highest-paid players taking the deepest reductions. Jay Jaffe laid out yesterday why the proposal wasn’t likely to fly with the players, a sense confirmed by Max Scherzer last night:
After discussing the latest developments with the rest of the players, there’s no reason to engage with MLB in any further compensation reductions. We have previously negotiated a pay cut in the version of pro rated salaries, and there’s no justification to accept a 2nd pay cut based on the current information the union has received. I’m glad to hear other players voicing the same viewpoint and believe MLB’s economic strategy would completely change if all documentation were to become public information.
Jeff Passan and Jesse Rogers first reported the proposed salary breakdowns at ESPN:
The formula the league offered, for example, would take a player scheduled to make the league minimum ($563,500), give him a prorated number based on 82 games ($285,228) and take a 10% cut from that figure, leaving him with a $256,706 salary.
The scale goes down as salaries go up, with every dollar:
- $563,501 to $1 million paid at 72.5%
- $1,000,001 to $5 million paid at 50%
- $5,000,001 to $10 million paid at 40%
- $10,000,001 to $20 million paid at 30%
- $20,000,001 and up paid at 20%
Rangers Prospect Cole Uvila Is a Driveline-Developed Spin Monster
You have to scroll pretty far down our Texas Rangers Top Prospects list to get to Cole Uvila’s name. Befitting his under-the-radar status, the righty reliever is No. 36 in a system that, according to Eric Longenhagen, has a lot of high variance players. None of them are as unusual as Uvila, who at 26 years of age has yet to pitch above A ball.
Not only does his future looms bright — Longenhagen cited “seemingly imminent big league relevance” — Uvila’s backstory is borderline bizarre. Moreover, he boasts a Driveline-developed curveball that features elite spin. We’ll get to that in a moment.
Uvila is coming off a breakout season with the High-A Down East Wood Ducks. In 64-and-two-thirds innings (including seven with Low-A Hickory), the 1,199th pick in the 2018 draft punched out 95 batters and allowed just 34 hits. That was followed by an eye-opening Arizona Fall League campaign that inspired a head-scratching question: “How on earth did this guy last until the 40th round?”
He hasn’t always been a pitcher. The Port Angeles, Washington native was primarily a shortstop in high school, and that was his initial position at Pierce College. By his own admission, he wasn’t a very good one. That led him to the mound, albeit not in a way you might expect.
“I couldn’t hit — I couldn’t catch up to [junior] college pitching — so I ended up getting a shot as a submariner pitcher,” Uvila explained. “I wasn’t dragging my knuckles, but I was low enough that my chest was completely over the rubber. Sidearm is 90 degrees and I was about 45 degrees from the dirt. Anyway, that got me off the redshirt list and onto the field, which was pretty much all I wanted. I never really imagined playing past junior college.” Read the rest of this entry »
Dan Szymborski FanGraphs Chat – 5/28/2020
12:01 |
: And so starts the show!
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12:02 |
: Who do you have the Reds taking with their first pick?
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12:03 |
: Eric’s the mock draft guy!
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12:03 |
: It’s hard to say depending on who goes there, but I expect the team to take a pitcher
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12:03 |
: Or at least prioritize a pitcher
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12:05 |
: Maybe if someone like Bailey drops to them?
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Chang-mo Koo Is Always Ahead
Modern baseball writers are a somewhat spoiled bunch. If you’re writing a story about an MLB player, you have seemingly countless resources at your disposal to gather more statistics than you might know what to do with. For example, say that I wanted to write about Cleveland Indians starting pitcher Shane Bieber. His player page on this site lists any standard or advanced metric I could want, along with info on things like how hard he throws his fastball and how often opponents chase his pitches out of the zone. If I see he struck out 259 batters in 2019, and want to know how many other pitchers in the live ball era struck out at least 250 batters in just their second big league season, I can use Baseball-Reference’s Play Index to find the answer. If I want to get more specific, and learn how many times Bieber struck out a right-handed hitter with a breaking ball out of the zone, Baseball Savant’s search feature has me covered there too.
When it comes to writing about foreign professional leagues, however, the wealth of information isn’t quite so grand for the American writer. Sites like MyKBO.net and Statiz are great resources, and our KBO leaderboards tell us a lot of great stuff — like the fact that NC Dinos left-hander Chang-mo Koo 구창모 leads all pitchers in both ERA and FIP after four starts – but if you want to dig into why or how he’s doing that, we don’t have the pitch-by-pitch data to identify things like velocity, spin rate, or how batters are performing against individual offerings. That hasn’t diminished my curiosity about Koo, though, so I used the tools available to me — Twitch and ESPN archives of game broadcasts, a notepad, and my own two eyes — to track his pitches over his first four starts, in the hope that doing so would reveal something interesting. Fortunately, both for myself and my editor who enjoys for me to have story ideas, it did. Read the rest of this entry »
A Brief Note on the Sulks, the Blues, and Other Such Ailments
Everyone gets the blues. Sometimes it’s for obvious, “good” reasons, like a global pandemic upending your life and taking hundreds of thousands of others. Sometimes it’s for complicated reasons, like bad brain chemistry and the reverberating effects of trauma. And sometimes it’s for trivial reasons, barely any reason at all. You lose at a game. You trip on a rock. You make a small, forgivable error at work. A tiny thing, in combination with the many other tiny things that make up life, can cast a pall over the ensuing several hours — even days.
Baseball players, being human people, are also subject to the occasional onset of the blues. The public nature of their jobs, though, can make the stakes of these incidences much higher: A small, forgivable error on the field, timed poorly, is a national disgrace, or a step toward the public, humiliating loss of one’s job. And with higher stakes come more dramatic reactions from the players. Reactions like, say, suddenly disappearing.
***
“Rabbit” Sturgeon — that’s how he was always referred to in a baseball context, never by any real, non-animal name — seems to have been born somewhere in Minnesota. He reported his age on the 1930 U.S. Census as 45, putting his birth date around 1885. There’s nothing much on the public record about his early life, but when William E. Sturgeon was around 20, he got into the two professions that would come to define the rest of his life: the railway and baseball.
Rail in the U.S. was hitting its peak at the beginning of the 20th century, and increased regulation made the historically dangerous jobs involved in railroad operations rather less so. Still, doing such work was hardly easy, and the job of a brakeman was one of the most notoriously difficult. Brakemen were responsible for the application of brakes — a simple-sounding but absolutely vital task, especially when massive freight trains were involved. Brakemen also made sure that the axle bearings of train wheels weren’t overheating, kept an eye out for stowaways, and ensured that cargo and passengers were safe. Read the rest of this entry »
Half a World Away and Right at Home: Sciambi and Perez on Broadcasting the KBO
It’s 1 AM on a Saturday night in mid-May, and in his otherwise quiet New York City apartment, Jon Sciambi is getting ready for work. As his neighbors snooze, Sciambi, a veteran TV and radio announcer for ESPN, goes over box scores and lineups in his home broadcast studio ahead of the upcoming LG Twins-Kiwoom Heroes game in the KBO, Korea’s professional baseball league. With MLB – Sciambi’s regular assignment – on hold due to the coronavirus pandemic, his job now is to do play by play for games featuring teams and players that, a few weeks prior, he barely knew (if he knew them at all), doing so from thousands of miles away while stuck at home like so many other Americans. For both him and viewers around the country, the KBO is the only game in town, and one that Sciambi and the rest of his ESPN counterparts are learning more or less on the fly.
“This is our baseball window, is the way I’m looking at it, and we’re trying to sort it out,” Sciambi says. “We’re trying to get as much information as we possibly can and put it out there and get good stories and talk baseball and have some fun, man. Smile and have some fun.”
Ordinarily during this time of year, Sciambi and ESPN would be working their way through the early part of the MLB season, traveling from coast to coast and bringing viewers big games from the biggest teams. But COVID-19 has upended both lives and leagues, leaving sports networks scrambling to fill slots that ordinarily would’ve gone not just to MLB, but also to the other major North American professional leagues, which also find themselves on hiatus. ESPN, which normally airs a handful of MLB games a week and spends countless hours parsing transactions and takes, was no exception, suddenly finding itself without any baseball at all as every league on the planet came to an indefinite halt.
The solution came in the form of the KBO. Thanks to a rigorous program of testing and contact tracing, South Korea was able to contain COVID-19 more quickly and effectively than other countries, allowing its citizenry to resume a semblance of normal life. That included its professional league, which had been forced to stop spring training in mid-March and delay its Opening Day. A month later, though, the KBO announced that it would return at the beginning of May, albeit in stadiums without fans and with social distancing measures, such as no handshakes, high fives, or spitting. Aside from Taiwan’s CPBL, it would be the only professional league in action — and as the highest-caliber baseball available, it became an immediate draw for ESPN. Read the rest of this entry »
Effectively Wild Episode 1547: The Hitless King
Ben Lindbergh and Sam Miller banter about MLB’s ongoing labor negotiations, the team-to-team differences in minor-league pay and front-office furloughs, and the perils of believing that baseball is purely for profit, follow up on the previous episode’s discussions of Carney Lansford’s claim to be a descendant of Sir Francis Drake and a forward-thinking 1989 Cy Young voter, and answer listener emails about bringing hockey’s three stars system to baseball and redoing the 2012 AL MVP vote with a 2020 awareness of WAR, plus Stat Blasts about an offensively futile game and the most hitless PA any batter has ever had against a single pitcher (featuring former major leaguer and Cardinals farm director Mike Jorgensen on his historic struggles against Dock Ellis, the first time he saw Albert Pujols, and how he helped avert a disastrous Pujols trade).
Audio intro: Townes Van Zandt, "No Deal"
Audio outro: Jerry Lee Lewis, "Thirty-Nine and Holding"
Link to Forst’s letter to minor leaguers
Link to unemployment info for minor leaguers
Link to latest Passan report on MLB labor issues
Link to info on the three stars in hockey
Link to info on FanGraphs’ stars of the game
Link to Mack Longpré and Sophie Welsman’s Stat Blast song cover
Link to Mack Longpré’s website
Link to 1987 bad sequencing game
Link to Good Night, Giants
Link to batter vs. pitcher hitless streaks data
Link to batter vs. pitcher on-base-less streaks data
Link to article on Bagwell vs. Sullivan
Link to article on facing Jeter
Link to Goold on a possible Pujols trade
Link to order The MVP Machine
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COVID-19 Roundup: A’s Minor Leaguers Take a Big Pay Cut
This is the latest installment of a series in which the FanGraphs staff rounds up the latest developments regarding the COVID-19 virus’ effect on baseball.
Oakland A’s Make Drastic Cuts to Minor League Compensation
With the odds of any kind of minor league season being played away from team complexes getting increasingly long, the Oakland A’s announced that they are ending the $400 weekly subsidies paid to their minor leaguers effective June 1; all 30 teams had previously agreed to pay such subsidies until the end of May.
“Unfortunately, considering all of the circumstances affecting the organization at this time, we have decided not to continue your $400 weekly stipend beyond May 31,” Athletics General Manager David Forst wrote in an email to the organization’s minor league players. “This was a difficult decision and it’s one that comes at a time when a number of our full-time employees are also finding themselves either furloughed or facing a reduction in salary for the remainder of the season. For all of this, I am sorry.”
Given the minimum salaries in the minors, which range from $290 a week in rookie ball to $502 in Triple-A, the team could have paid all of their minor leaguers the minimum for just over $1 million. (Note that this comes at the same time MLB is trying to effectively memory hole $1 billion in revenues in their public battle with the MLBPA.)
MLB’s Public Fight With Players: A Timeline
On March 26, MLB and the MLBPA reached an agreement with respect to playing the 2020 season. The parties were mostly silent for a few weeks regarding financial matters, with much of the focus on when and how the season might be resumed and played safely with the threat of COVID-19 still looming. But operating in the background were increased concerns over lost revenues in the event of games or an entire season played without fans in attendance.
With those concerns has come some anxiety that a public debate on the fate of millions, even billions, of dollars will be perceived by fans of the sport as unseemly, especially when set against the backdrop of the suffering the pandemic has inflicted on so many. But how have the terms of that debate come to be known? With the MLBPA in the position of reacting to proposals offered by the league, I thought I might examine the how and when of MLB’s public claims. Below, you’ll find excerpts from pieces that ran at a variety of publications showing how MLB has attempted to negotiate or portray its financial situation publicly since reaching the March agreement (links are in the date)
Manfred said about 40% of operating revenue derives from gate and gate-related areas, such as luxury suite rentals, concessions, parking, signage, and program sales and advertising. Going forward with a plan to play in empty stadiums likely would lead to another negotiation with the union, led by former All-Star first baseman Tony Clark.
“I talked to Jeff Wilpon today, the owner of the Mets. Go Queens. Go New York,” [New York Governor Andrew] Cuomo said. “I said, ‘Why can’t we talk about a baseball season with nobody in the stands? Why can’t you play the game with the players?’ I think it would be good for the country. I think it would be good for people to have something to watch and do to fight cabin fever. And it’s something I’m going to pursue. Apparently Major League Baseball would have to make a deal with the players, because if you have no one in the stands, then the numbers are going to change, the economics are going to change.”
A league spokesperson said that “both parties understood that the deal was premised on playing in stadiums with fans and the agreement makes that clear.”
There are owners who have privately said that without readjustments they would lose so much more money, why even play the games.
“Our clubs rely heavily on revenue from tickets/concessions, broadcasting/media, licensing and sponsorships to pay salaries,” Manfred wrote in an email Monday, a copy of which was obtained by The Associated Press. “In the absence of games, these revenue streams will be lost or substantially reduced, and clubs will not have sufficient funds to meet their financial obligations.”
Although an agreement between the sides on return to play exists and includes a section on players receiving prorated sums of their salaries, multiple owners have suggested that it could cost them more to play games than it would not to play them and said they believe the agreement between the sides could allow them to pursue pay cuts from players.
[T]o have games just on TV for the whole season for many, many reasons is not practical. – Randy Levine, team president, New York Yankees
Some teams contend that they could actually lose money if games are played. Their rationale is that local and national TV money will not cover their operating costs. And if that’s the case, they would like players — who already have agreed to be paid a prorated portion of their salary depending on the number of games — to take an even greater pay cut.
“If we ended up playing and playing in front of full fans, for 82 games, it makes total sense that we would pay players’ full salaries,” one industry executive said. “If you’re in the more extreme where we have to play empty everywhere, that’s half the revenue that would have come in that’s not coming in anymore. We weren’t equipped or budgeting to pay full salaries for that.”
As things stand, league officials say that on average, for every incremental regular-season game played without fans in 2020, teams would spend more money on player salaries than they would earn in revenue.
Without the players making such a concession, league officials say they will spend more on player salaries than they would earn in revenue for every incremental regular-season game played without fans.
MLB has said it will lose more money by keeping the pay prorated without fans and is averse to playing games in that situation.
Major League Baseball owners, with an abundance of optimism that baseball will be played this year, are scheduled to vote on a plan Monday that will require teams to share at least 48% of their revenue with the Major League Baseball Players Association this season, two people with direct knowledge of the proposal told USA TODAY Sports.
The people, who spoke only on the condition of anonymity because they were unauthorized to discuss details, said the historic revenue-sharing plan is integral to diminish revenue losses with games potentially being played without fans beginning in July. MLB officials say that teams are expected to lose about 40% of their gross revenue from ticket sales, concessions and parking.
“We lose money on every single game (without fans),” one league official said. “We have to propose that they take something less than they already negotiated.
“We’re talking about heavy, heavy losses,” one owner told USA TODAY Sports on the condition of anonymity because negotiations are private. “There are teams that would lose about $100 million during the regular season if we played with no fans and the players’ salaries stayed the same.”
MLB owners, saying they could lose as much as $150 million per club during the regular season if players don’t restructure their salaries, agreed Monday to propose a 50-50 revenue sharing plan instead of paying them pro-rated salaries.
Tom Ricketts told season ticket holders that 70 percent of the Cubs revenue comes from game day operations / ticket sales/ fans in the stands. He went on to say with half the season gone 15 percent of gross revenues would be the take with no fans.
[P]laying in empty stadiums is not a great feel for us economically, but our owners are committed to doing that because they feel it’s important that the game be back on the field. – Rob Manfred, on CNN
Angels owner Arte Moreno is particularly insistent the league should not re-start without economic concessions from the players, sources say.
Major League Baseball told players their prorated salaries would contribute to an average loss of $640,000 for each game over an 82-game season in empty ballparks, according to a presentation from the commissioner’s office to the union that was obtained by The Associated Press.
Teams say the proposed method of salvaging a season delayed by the coronavirus pandemic would still cause a $4 billion loss and would give major league players 89% of revenue.
A March 26 conversation between MLB and the union in which MLB portrays the union as acknowledging that a new negotiation was needed regarding how players would be paid this season could serve as an email version of a smoking gun.
The players have already agreed to prorate their salaries, costing them about half of their annual salary, but the owners insist without additional concessions they will lose money playing games without fans.
The players would make more money for every regular-season game played under the current arrangement and therefore could ask the league for an increase from the proposed 82 games. But the league says unless players take another cut, it will lose money for every additional game.
Major League Baseball dropped a revenue-sharing plan, and instead introduced a sliding scale of compensation to the Major League Baseball Players Association on Tuesday afternoon, the first time the two sides have formally discussed economic issues in an attempt to open the pandemic-shortened season by the July 4th weekend.
The plan, three people with knowledge of the proposal told USA TODAY Sports, proposes to pay players a prorated percentage of their salaries, with the players who make the most taking the biggest salary cuts. The three people spoke only on the condition of anonymity because negotiations are ongoing.
The timeline above certainly isn’t exhaustive; many of the pieces I’ve linked to also include quotes from agents, players, and union representatives, though mostly in response to the public positions MLB has taken. Some of the information has a name behind it, but much of it doesn’t. MLB has a pretty clear public plan, one that attempts to emphasize owner losses in an abbreviated 2020 season.
Over and over again, we hear owners or the league’s representatives asserting that MLB and its teams will lose more money playing regular season games without fans than they will if those games aren’t played at all. When MLB had the opportunity to present and support such claims, their arguments fell considerably short of being convincing. It’s possible that in private, MLB is putting forth good faith arguments, but their public PR battle against the players suggests otherwise. If a public fight is bad for the sport, why do those with the biggest financial interest in the game and its future keep waging one?