generic plavix medication sertraline canada pharmacy clomid for male purchase zyrtec buying xenical canada prescription buy amoxicillin amazon 252 rx site 24 buy cheap viagra products pfizer and viagra buy avodart for hair loss online escitalopram buy line generic effexor good cost valacyclovir bull 100 viagra buy real viagra and cialis using viagra anyone bought viagra online lexapro buy online one azithromycin 600 mg for chlamydia allergy md discontinued amoxicillin mg by weight actonel 2008 cymbalta getting off safely cheap generic cialis metformin hcl 500 mg tablet where can i buy celebrex gel price of actonel 150 mg rogaine canada online generic allegra online crestor monthly cost how often can i take 20 mg of cialis? buy protonix order online purchase viagra in australia sildenafil citrate brand names crestor 20 mg price nizoral cipla cialis review snort trazodone get high cialis pricing walgreens buy lisinopril 20mg online buy cipla online can you sell viagra on ebay 60 buy omeprazole dr 20 mg discount no prescription pharmacy buy alendronate uk buy ventolin online cheap tetracycline brands in india buy synthroid from mexico kamagra jelly india imitrex commercial generic pain meds overnight fosamax generic buy valtrex us pi is periactin available in canada fucidin tablet kullanan canaidian pharmancy over counter viagra no prescription generic singulair aldactone 100 mg asthma buy viagra medication generic valtrex overnight cost of plavix in portugal healtyman griseofulvin price buy propecia 250 online buy dapoxetine 90mg generic substitute for doxycycline flomax from canada lesofat price philippines z pack prescriptions prednisone cost per pill baclofen from canda inderal online brand name cialis in hong kong buy doxycycline once least expensive azithromycin cost of simvastatin at walmart nonprescription robaxin cialis how much should i take mg winstrol bestellen 24x7 pharmacy no prescription lisinopril from india pharmacy 1drugstore online show products buy alli pills online suhagraat tips in hindi font plavix cost cvs 24 hour shipping viagra is canadian cialis safe wellbutrin buy cheap no prescription online order viagra overnight delivery name brand viagra online usa acyclovir cost india broadway services generic viagra codeine et musculation isotretinoin 0.05 w w buy obagi tretinoin online dosis ventolin tablet anak wellbutrin generic pill identification yasminelle online viagra online fast shipping purchasecialiscanada viagra replacement over the counter l-thiroxine from canada where can i buy aciclovir tablets order omeprazole from canada buy doxycycline for dogs online citalopram costo flomax bustine doxycycline price in the philippines otc permethrin otc cialis daily price viagra sale pfizer buy viagra gel elimite levetiracetam 1000 mg price canadian pharmacy cialis 20mg best legal on line site to buy cialis get zyprexa can you buy celebrex over counter buying furosemide online uk apo escitalopram 20mg buy antibiotics at spray buy accutane pills canada how much phenergan to give 16 month old cheapest cialis available paxil cost without insurance cialis 5 mg terapia cheap viagra online canada no prescription diurin 40 www pakistan sex zovirax acyclovir orlist pills buy 60mg prednisolone for dogs 5mg costco cialis 5 mg nexium price in canada finasteride online pharmacy store canadian drugs levitra buy doxycycline paypal canadian drug ed price tamsulosin hydrochloride cheap zyprexa usa buying rogaine online in canada best on line pharmacy valtrex no prescription overnight overnight shiping cialis methotrexate 2.5mg tablets generic viagra fedex india simvastatin nizagara vs viagra online costa rica pharmacies zoloft generic form fosamax generic canada crestor cost walmart toprol xl 25 mg where to buy lantus insulin for cats order accutane online canada ampicillin 500mg uses singulair 5mg viagra next day uk genericviagra.me.uk buy metformin er online cialis and premature ejaculation e.d pills online buying nizoral cialis 20 mg cheapest can cialis be purchased naproxen generic buy wholesale viagra cheap from america generic zoloft no prescription safe and efficient beauty products alipas ginseng buy zithromax online in usa dermasone order lexapro no prescription propecia bestellen legal viagra sales tramadol 50mg buy uk lipitor 20 mg para q sirve the rediculous cost of viagra zithromax 200 mg price cialis generika cheap prescription drugs amoxicilin buy buying ambien in canada proscar get viagra best suppliers cialis no prescriptino price of generic keppra xenical online prices generic nexium in canada online pharmacy no prescription zoloft canadian pharmacy support group genuine viagra buy delgra 200 mg viagra online pharmacy india clomid red pill amoxicillin online uk motilium otc finasteride 1mg uk bupropion cheap no prescription generic plavix medicine bentyl without a prescription celebrex canada prescription viagra with a script where to buy cytotec in canada fast shipping prednisone zyvox samples buy viagra online canada vipps pharmacy lexapro no prescription online india pharamcy zoloft pill sertraline 50 mg buy dapoxetine online uk generic allegra d 24 hour crestor brand price primatene mist inhaler buy cymbalta global sales tadalafil made in india allegra apartments hervey bay for sale buy progyluton online ciprofloxacino para sirve daily cialis order paroxetine without prescription wellbutrin xl 300 mg yorumlar buy diflucan mexico cialis pharmacies venlafaxin online bestellen shuangbao acura viagra cost isotretinoin drug phenegrin no script on line tadalafil buy online usa where to buy liquid viagra for women tetracycline for sale generic viagra with free shipping crestor 5 mg tablet filmomh vendita online intimax100 in italia authentioc brand viagra diovan price check diflucan (fluconazole) prednisone 10 mg tablet dosage cost nexium singapore nexium tablet contains buy manforce sildenafil citrate online how to use viagra canadian pharmacies overnight metoprolol mecanismo de accion buy nexium tablets uk buy actonel 150 buy diflucan generic viagra for womens mumbai order cymbalta generic india cialis for daily use dosage canadian pharmacy viagra offers lebitra zoloft tablet pfizer finpecia 1mg cost india buy cialis best review buy promethazine online europe proscar 1.25 mg flomax order buying viagra at chemist generic for trazodone prozac in india gabapentin rxlist clomid 100mg cost cialis canada drug stores wanted to buy tadalafil pills buy amoxicillin in spain cost of propecia ireland mycanadianpharmacyonline alli without colchicine purchase online discounts erectile 20 mg prezzo cheap cialis in the united states cialis that take master card there any natural alternatives to viagra online valtrex order canadano prescription drugs buy discount cialis online rogaine price us india fortamet benadryl cough syrup price order xenical usa buy lamictal with no prescription clomid tablets to buy uk cheap real viagra buy voltaren plus clomid order online nitroglycerin ointment buy at store best buy viagra cost voltaren emulgel viagra without a doctor's approval buy prescription levitrabuy levitra in the uk lloyds pharmacy levitra levitra tablets orden de pizza en linea nexium buying clomid dosage sources for cialis prozac green pill finasteride buy uk generic zoloft pills fish cycline for humans do u need a prescription to buy viagra 1mg finasteride buy abilify canada pharmacy antibiotics overnight socialismo buy propecia in uk purchasing viagra online from canada generic topamax 200mg acheter viagra forum best prices for viagra cialis online lilly allegra bracelet de grisogono price vegalis 20 amitriptyline no rx needed celexa us pharmacy buy clomid tamoxifen code red 7 pill reviews lavpris viagra long time sex medicine name secure online bactrim cheapest price for cialis motorcycle events cialis pills original approved viagra pharmacy alli online shopping femara 5 mg iui buy cipro 500mg cheap clomid europe omifin ic prednisone 20 mg doxycycline price comparison is kwikmed legitimate zovirax without prescription order dapoxetine online online discount canadian pharmacy pham drugs buy proscar online no prescription cheapest cialis uk lasix oral tablet 20 mg topamax 500 mg cheap nizagara nexium 20 mg price australia prednisone 40 mg uses diovan tablet 320 mg aldactone online no presc cialis mail order uk viagra pills australia buy sildenafil 250 mg levitra mastercard buy plendil is cialis safe cost of accutane acne treatment zithromax 40 mg cialis precio de 20 mg en usa dove comprare viagra buy priligy dapoxetine from india buy cheap naproxen uk valtrex 1000 mg cost metronidazole side effects order citalopram no rz valtrex for fish buy cialis doctor online clavam 625 buying proscar online cialis costco pharmacy viagra for young men over the counter mediformin cheap synthroid reliable canadian pharmacy cialis for women for sale zovirax discount online nexium half tablet pill omeprazole dr ampicillin uses enbrel equivalents where to buy water pills amoxicillin for sale vermox no perscription pharmacys online buy promethazine in uk fluoxetine in india actonel ndc where does alli simpson shop strattera taper augmentin generic over the counter paroxetine 45 mg buying valtrex uk when will the plavix generic be available viagra supplier in the uk buy nolvadex toenail ezetimibe 313 cytotec abortion buy online in the us lasix sale uk gonorrhea treatment online ordering real viagra online buy viagra without presc lipitor deltasone medicine cheapest generic cialis indian online levaquin sirius radio healthy man generic cymbalta united states buy topiramate mexico fincar prednisone no prescription fedex canadian cialis safety silagra deutschland lasix canada overnight mobic 15 mg buy synthroid online no prescription claritin price costco imitrex tinnitus buy abilify 2mg online buy claritin d generic buy celebrex india online pharmacy viagra generic accutane treatment cost generic duloxetine canada order methotrexate with mastercard buy viagra online pharmacy low cost asthma inhalers seroquel generic date can i take 2 cialis ipratropium bromide on line over the counter flagyl substitute cheap fexofenadine amaryl m1 methocarbamol street value purcahse diflucan one in canada is it safe to buy generic cialis online where to buy cialis in mexico viagra express shipping generic voltaren canada pharcharmy online viagra tablet sizes aciclovir 200 mg dosage cialis daily 5 mg order actonel online viagra charlotte nc triamterene hctz accutane 40 mg isotretinoin secure medical amoxicillin for cats online dapoxetine walmart female viagra paypal accepted buu online generic cialis safe take clomid without doctor levitra buy uk online pharmacies in mexico canada drugs no prescription needed lexapro costco cheapest place to buy crestor protonix buy online purchade hydrocodone cough syrup where to buy tulasi plant in uk proscar buying generic zithromax azithromycin 500 mg canadianonlinepharmacies levitra professional cost of clomid in canada canada pharmacies online price propecia brand allegra d generic about viagra tablets 50mg buy accutane online for cheap clomid fast shipping to sweden is generic valtrex expensive 121 dth 24b kamal kunj sv road solebox adidas torsion allegra for sale comprar cialis 5mg em portugal buying dutasteride online zyrtec 10 mg tablet venlafaxine buy cheap online uk dove acquistare viagra on line allegra 120 cost india where to buy lipitor cheap first visit to doctor for viagra where to buy singulair cheap viagra in deutschland bestellen order propecia online india tadalafil-cialis-500-mg generic loratadine amazon lexapro 10 mg ocd trazodone 490 comprar cialis 5mg buy imitrex without a prescription abilify cost price buy xenical orlistat cheap topamax generic brands diovan tab 160mg amoxicillin 750 mg ratiopharm beipackzettel buy retina no prescription cialis now online cheap colchicine no prescription lasix without prescription overnight diflucan online drug buy yasmin price canadian pharmacy online express overnight-pharmacy-4-u-viagra
Home Pete Toms LWIB: Call for Increased Revenue Sharing, Update on the Potential Sale of the Rangers, Boras on Rookie Compensation

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 489 guests online

Atom RSS

LWIB: Call for Increased Revenue Sharing, Update on the Potential Sale of the Rangers, Boras on Rookie Compensation PDF Print E-mail
User Rating: / 21
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Sunday, 06 September 2009 23:31

Last Week in Bizball by Pete Toms

This week in LWIB, is competitive balance / revenue sharing emerging as a key issue in the upcoming CBA negotiations? Plus, potential buyers emerge in the proposed sale of the Texas Rangers and Scott Boras on the subject of “rookie compensation”.

THE CALL FOR INCREASED REVENUE SHARING

According to MLB, revenue sharing resulted in $450 million being redistributed this season amongst “small market” clubs.  (Some would argue that “small payroll” is more appropriate)   Commissioner Selig has long argued that revenue sharing is essential to MLB’s goal of engendering “competitive balance”.  (Some prefer the terms “parity” or “mediocrity”).  Commissioner Selig publicly argues that increased revenue sharing and the corresponding increase in competitive balance in MLB has been key to growing attendance and industry revenues to record levels in recent years.  When the Tampa Bay Rays competed in the 2008 World Series (along with the Milwaukee Brewers making the playoffs the same season)  MLB could proudly proclaim that competitive balance had never been greater and that fans in all thirty MLB markets could legitimately believe that the “fall classic” could include their hometown.  MLB was proud that seventeen of their thirty franchises had competed in the World Series in the past twelve years while eight different franchises have been champions in the last nine seasons.

LWIB saw media reports that “large market” clubs are reasserting their on field dominance this season.  Trades of some high profile veterans from “small market” clubs to “large market” playoff contenders this summer has also contributed to renewed concerns about “competitive imbalance”.  Also LWIB, one small market owner and one small market executive mused publicly if increased revenue sharing needs to be achieved in the next round of CBA negotiations (the current CBA expires in December 2011) if competitive balance is to be maintained (re-established?).

Bob Nightengale reported last week for USA Today:

Baseball organizations have been reminded that the game's most powerful component often is a fat wallet.

If the regular season ended today, seven of the top nine highest-paid teams would be in the playoffs,….The Colorado Rockies or San Francisco Giants, who rank 14th and 15th and battling for the National League wild card, would be the only playoff team not in the top 10.……

The Texas Rangers and Florida Marlins are the only teams in the bottom 10 of payroll with winning records.

AND

That disparity was deepened by trade activity, with former All-Stars such as Matt Holliday (to the St. Louis Cardinals), Victor Martinez (Boston Red Sox) and Scott Kazmir (Los Angeles Angels) going from small-market clubs to teams with deep pockets. The Chicago Cubs and New York Mets are the only teams in the top nine of payroll not in contention.

Michael Hunt wrote last week for the Milwaukee Journal Sentinel:

When the champagne sting cleared from Doug Melvin's eyes after the 162nd game of last season, it was mentioned to the Brewers' general manager that teams from Milwaukee and Tampa Bay were in the playoffs and the two from New York were not.

For a moment we discussed whether this was the start of a more competitively balanced era for baseball, but soon the conversation drifted toward immediate concerns. Parity talk could wait.

So here it is, almost a year later, and it seems to be business as usual again in baseball. The New York Yankees, Boston Red Sox, Philadelphia Phillies and both Los Angeles teams represent the bulk of the ruling elite from their stations within the game's largest markets.

AND

As for the Brewers and their first playoff appearance in 26 years, as well as the Rays' refreshing run to the World Series, it is tempting to look at 2008 as little more than an anomalous season for baseball.

Commissioner Selig was quoted in both pieces and the tenor of his remarks was cautious.  Mr. Selig speculated in Mr. Nightengale’s piece that the 09 season has been “aberrational” in terms of “competitive balance”.  In Mr. Hunt’s piece the commissioner expressed his antipathy towards a salary cap but did say, "Is the system perfect? No. It needs some work,"

No doubt commissioner Selig treads carefully on this subject because he is acutely aware that revenue sharing is a contentious issue both amongst owners and with the MLBPA.  Commissioner Selig must also be aware that at least some “small market” franchises will be pressuring MLB to bargain for increased revenue sharing in the next CBA.  Milwaukee Brewers owner Mark Attanasio was quoted in Mr. Nightengale’s article.

“We've had a competitive balance the last seven or eight years, so the question is whether this is an aberration or start of a trend.

"If it's a trend, that's disturbing, and it's something we'll definitely need to consider in the next (collective bargaining agreement)."

This is not the first time that Mr. Attanasio has spoken publicly about this subject, he made similar remarks this off season in reaction to the New York Yankees spending in the free agent market.  Mr. Attanasio was not the lone “small market” voice LWIB to speculate publicly that “competitive balance” could be an issue in the upcoming CBA negotiations.  Pittsburgh Pirates President Frank Coonelly was asked in an online chat, “Any plans to lobby MLB to change its revenue-sharing system so that small-market teams like the Pirates can better compete?” Mr. Coonelly responded:

Major League Baseball already has, by a large measure, the greatest amount of local revenue sharing of any of the professional sports. Because of that revenue-sharing program there is baseball in markets like Pittsburgh, Kansas City, Cincinnati, Baltimore, St. Petersburg, Minneapolis and many more. Not only can we compete under the current system, the Rays, the Rockies and the Twins have shown that we can win under the current system……Having said all of that, the Pirates continue to work through the Commissioner's Office to aggressively pursue changes in the Collective Bargaining Agreement that will continue to reduce disparity and increase parity.

How will the MLBPA react if (obviously there is also opposition to increased revenue sharing amongst ownership) MLB negotiates for increased revenue sharing?  Many argue that the true aim of revenue sharing and payroll taxes is not to achieve competitive balance but to suppress player compensation.  As veteran players have met with diminished demand for their services in the free agent market in recent years, can the PA consent to increased revenue sharing and a resulting further “drag” on salaries?  And finally, how important is “competitive balance” to a league’s bottom line?

Andrew Zimbalist wrote in his 2003 book, May the Best Team Win, Baseball Economics and Public Policy:

While owners have claimed that they want more revenue sharing and a luxury tax on high payrolls in order to level the playing field, it is apparent that they are also seeking to control the growth in player salaries.  Higher revenue sharing taxes lower the net marginal revenue product of players, and, other things equal, lower their salaries.

Many sports economists argue that revenue sharing has had little to no impact in increasing “competitive balance” in MLB.  Some would also argue that eight different franchises winning the past nine World Series is not evidence of greater “competitive balance” but simply a result of the increased number of clubs competing in the postseason.  Sports Economist David Berri wrote in 2006:

From 1996 to 2000 the New York Yankees won the World Series four times. “Baseball has a competitive balance problem” was the cry heard throughout the land. The only solution was some mechanism to control the growth of salaries and re-distribute baseball’s wealth from the rich – i.e. the Yankees – to the poor.

The 2002 labor agreement – which was just extended to 2011 – was designed to resolve these problems. A luxury tax on high payrolls was enacted. This tax – primarily paid by the Yankees – was designed to restrict spending by large market teams on players. The agreement also focused on revenue sharing, which gave small market teams more money.

AND

Commissioner Bud Selig tells us that the 2002 agreement has ushered in a “golden age.” If by “golden age” he means an era of pay equality and competitive balance, then the data doesn’t seem to agree. Team payrolls are even less equal today and the level of competitive balance appears to be about the same.

The reality is that competitive balance improved in baseball during the 2oth century as the population of available athletes expanded. And the improvements occurred well before the 2002 agreement. …..In the last thirty years the standard deviation of winning percentage in both leagues has changed very little. Yes, payrolls have increased dramatically, but competitive balance remains basically the same.

So is this a “golden age” of baseball? If by “golden age” we mean the Yankees are not winning the World Series every year, then I guess that is true. But one should not be confused about how that trick was pulled off. The true trick happened when baseball expanded participation in the playoffs. Since 1995 the team with the best record in baseball has only won the World Series once. And that is because the best team now has to navigate three playoff rounds to win the title.

Putting aside the debates over whether or not revenue sharing and luxury taxes has resulted in greater “competitive balance” and whether or not small market clubs are investing their revenue sharing dollars in baseball players (as opposed to adding it to their bottom line), does greater “parity” lead to increased fan interest in a league?  Many believe that the New York Yankees dominance (if dominance is measured in World Series championships) of MLB in the late 1990’s was a key factor in the resurgent interest in the sport.  Proponents of this argument also point to the enormous popularity of the EPL, a league with great competitive disparities.  (An apples to apples comparison is not quite accurate due to the “promotion / relegation” structure of the EPL).

From a separate post from aforementioned sports economist David Berri on the importance of “competitive balance” to the popularity of sports leagues.  (see here for additional discussion)

….the link between competitive balance and attendance has been extensively studied…..

And what does this literature indicate? Competitive balance does impact demand, but it doesn’t appear to be very “important.” At least, dramatic changes in balance do not seem to have a very dramatic impact on league attendance. Given this result, I am not sure the “optimal level of balance” is something leagues should actively seek…

This issue is unlikely to derail the upcoming round of CBA negotiations (if the owners decide to make it an issue).  Industry observers foresee a continuation of the present good relations between MLB and the PA.  Nonetheless, commissioner Selig is faced once again with the formidable challenges of balancing the demands of large and small market clubs while bargaining an agreement which allows the players to earn an equitable amount of revenue.

Select Read More to see details on the upcoming sale of the Texas Rangers, and Scott Boras on rookie player comensation

UPDATE ON POTENTIAL SALE OF THE TEXAS RANGERS

The Texas Rangers on field performance has been one of the 09 season’s best stories.  The Rangers unexpected close pursuit of the AL wild card berth has resulted in increased attendance and TV ratings.  As for Rangers’ owner Tom Hicks, his well chronicled financial problems has been one of MLB’s most embarrassing storylines of the season.  In the spring, Hicks Sports Group (also owner of the NHL Dallas Stars) defaulted on a $10 million interest payment to a group of 40 creditors.  In July there were a spate of reports that MLB was assisting the Rangers in meeting their payroll obligations.  That news coming after the Rangers had laid off 10% of their front office staff earlier in the season.  LWIB saw reports that six potential buyers have emerged in the proposed sale of the franchise.  Daniel Kaplan reported for The SportsBusiness Journal:

The Texas Rangers received letters from about six prospective buyers interested in acquiring the team when those documents were due on Aug. 18, financial sources said.

Owner Tom Hicks and MLB are looking for $600 million for the team, though sources close to prospective acquirers believe the franchise will sell for a figure more in the low- to mid-$500 million range. Hicks, through a spokesman, declined to comment.

AND

If Hicks does get a deal in the $500 million range, he would be doing well given that the team does not have ownership in a regional sports network and does not own its ballpark, though it does have a favorable lease, said sports consultant Marc Ganis, who has been advising the Tribune Co. on the sale of the Chicago Cubs that now is awaiting bankruptcy court and MLB approval. The Cubs, a historic brand, were valued at $845 million, but that includes their ballpark, Wrigley Field, and a 25 percent interest in Comcast SportsNet Chicago.

“In this economy, if they can get in the low $500 million [range] for a team that is underperforming relative to its market, Hicks should be very happy,” Ganis said.

Barry Shlachter followed up on the SBJ report in The Dallas Morning News.  Mr. Shlachter reports that Mr. Ganis estimates the value of the Rangers in the “mid-$400 million range”.  From the same report;

Don Erickson, a Dallas sports consultant involved in the sale of the San Diego Padres in February, said he would put the value of the Rangers below the Padres, who sold for $500 million. Moreover, any buyer should have deep enough pockets to lose $20 million a year, since it would be difficult to turn a profit in a bad economy, he said.

"You cannot think like a businessman and buy these teams," Erickson said. "They pretend like they do. But they're really thinking with their ego. The reality is that in the last five years, the vast majority of teams didn't make money."

The only names that have surfaced as possible buyers are former Fort Worth auto dealer David McDavid, who has been keeping a low profile, and Rangers president Nolan Ryan, who has made few statements on his position.

At the same time as HSG is searching for a buyer for the Rangers, they face a potential showdown with the NHL over control of the Dallas Stars.  From a separate, and also recent, report from Daniel Kaplan in The SportsBusiness Journal.

The more than three dozen creditors of Hicks Sports Group, the owner of the Dallas Stars and Texas Rangers that defaulted on its debt in March, sent a letter to the NHL four weeks ago asking the league how it planned to help address their concerns, according to financial sources, but there has been no response.

At the same time, HSG owner Tom Hicks has suggested that he believes he can hold onto the Stars despite the default through August 2010, which is far later than the October deadline the creditors assumed existed for resolution of debt crisis, the sources said.

A process to sell the MLB Rangers is under way, but no such activities are believed to be occurring around the Stars. The situation could shape up as a major battle between the creditors on one side and the NHL and Hicks on the other.

“There will be litigation for sure,” one of the sources said.

There is also speculation that a potential resolution to HSG’s debt financing problems lies in Mr. Hicks search for investors in Liverpool FC of the EPL.  (Mr. Hicks co-owns the franchise with George Gillett)  The soccer franchise is not owned by HSG but Mr. Hicks could potentially use cash acquired from new investors in Liverpool FC to alleviate HSG’s debt crisis.

SCOTT BORAS ON ROOKIE COMPENSATION

Stephen Strasburg’s record setting rookie deal has brought increased scrutiny to the subject of “rookie compensation” in MLB.  Both commissioner Selig and MLB Executive Vice President, Labor Relations & Human Resources, Rob Manfred have stated that MLB will attempt to negotiate “mandatory slotting” for amateur draft picks in to the next CBA.  As well, an expansion of the amateur draft in to Latin America is expected soon.  Both of these changes are a reaction to the rapidly inflating costs of acquiring young talent.  At the same time as clubs have increased investments in amateur players, veteran players have recently encountered a depressed free agent market for their services.  Some veteran players have been outspoken over the amounts of money that “unproven” rookies are commanding.  “Rookie compensation” is expected to be an important issue in both the upcoming MLB and NFL CBA negotiations.  Both leagues want to impose limits on “rookie compensation”.  Whether those dollars being awarded to rookies will instead flow to the veteran players is subject to healthy debate.

LWIB Scott Boras and Rob Manfred commented on the subject.  From Liz Mullen, in The SportsBusiness Journal.

“I did a record contract for [Mark] Teixeira in 2001, and it was eight years before we went above that,” Boras said last week. “We have not represented a player that allowed us to exceed Teixeira, even though [MLB] revenues went from $3.5 billion to $6.5 billion.”

AND

Rookie contract records are set almost every year in the NFL, whose rookie salary system is based on the league’s revenue, but that’s not the case in baseball. Boras says the failure of rookie salaries to grow on pace with the sport’s revenue is hurting the game by causing America’s best young athletes to choose basketball and football over baseball.

“To suggest that baseball is actively recruiting the best athletes in America by the numbers is a farce,” Boras said.

So far this year, Boras noted, the NFL has paid out $423 million to first-round draft picks. The NBA, with its rookie wage scale, paid about $102 million for first-round players. Baseball paid first-round draft picks $82 million.

Rob Manfred, MLB executive vice president of labor, said, “Comparing the NBA draft and the NFL draft [to MLB’s draft] is like comparing apples to oranges.” There are many differences, he said, including that few baseball players move directly from the draft into the collective-bargaining units of the respective players unions, unlike in football and basketball.


OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK

(THE BIZ OF HOCKEY)

(THE BIZ OF FOOTBALL)

(THE BIZ OF BASKETBALL)


Pete Toms is an author for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Don't forget to register and log in on The Biz of Baseball site to get updates via your in-box, and see information only logged in members can see.

Follow The Biz of Baseball on Twitter Twitter

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?