The progress of MLB lockout talks is encouraging, but the time is running out as spring training approaches.
- The players union and Major League Baseball met in New York to discuss ending the lockout.
- The regular-season opening day is scheduled for March 31, and spring training is set to begin next month.
- The topics on the table include player pay, playoff format, and the luxury tax.
With Barry Bonds once again denied entry into Cooperstown, Major League baseball is now faced with the task of starting its season on schedule.
Since December, players have been locked out, marking the ninth work stoppage in MLB history. Despite this, spring training is scheduled to begin next month, with opening day set for March 31.
The MLB Players Association and league officials met twice this week and will meet again in New York on Thursday to discuss the framework for a new collective bargaining agreement. Talks resumed last week for the first time since the lockout began.
Former MLB executive Marty Conway stated that spending any day at the bargaining table is beneficial, and two consecutive days are a positive indication.
The MLB has proposed increasing the minimum salary for players, implementing stricter rules around the arbitration system, cracking down on service time manipulation, and redistributing revenue among clubs.
Conway, a sports business professor at Georgetown University, stated that after the initial sessions dominated by posturing and personalities, the focus should shift to addressing the underlying issues with the new group of individuals who have not previously negotiated with each other.
Finding common ground
Spring training games begin on February 26th, and pitchers and catchers are scheduled to report to team sites in the middle of next month.
Despite the work stoppage, top free agents like Atlanta Braves first baseman Freddie Freeman and Houston Astros shortstop Carlos Correa are still unsigned, and teams have not yet filled out their rosters.
Conway predicted that "significant advancements would occur in the near future" due to players' desire to avoid missing regular-season games and the accompanying payments.
Gearing up for a 162-game regular season requires conditioning, and players must consider the importance of this to them, even if they may be willing to forego some of the preseason held in Arizona and Florida.
"What is it that you need, two weeks or three?" Conway inquired.
The league and players have a common ground in the possibility of an expanded postseason, which was successfully tested during the pandemic-shortened season in 2020.
In 2020, MLB expanded the playoff field from 10 to 16 teams. The Los Angeles Dodgers emerged victorious in the World Series, besting the Tampa Bay Rays in six games. Following the championship, league commissioner Rob Manfred began advocating for a permanent change to the playoff format.
The American League and National League top teams will have a bye in a 14-team league format, while the MLB Players Association prefers 12 teams.
The more clubs in a tournament, the greater the potential for postseason revenue, and players would have a larger pool of money to share. The players' pool consists of gate receipts from all postseason games, including a 60% take from the first four games of the World Series. In 2019, the last full season before the Covid pandemic, the total pool was approximately $80 million, the third-highest on record. The remaining postseason funds are distributed among team staff.
The 12-team proposal has some support beyond just the players. One media executive stated that anything beyond 12 teams would dilute baseball's product and ruin the pennant races that typically drive excitement in the season's closing weeks.
In a 14-team format, division winners would host a best-of-three series with all the games at their home field, and higher-seeded teams would also select their opponent.
Conway stated that a revised postseason format would generate excitement in MLB as "fans, customers, and commercial sponsors would love more meaningful games."
Another contentious issue at the table is the use of a universal designated hitter in baseball. While the National League requires pitchers to hit, the American League employs a designated hitter for the pitcher. This approach was utilized during the pandemic season.
One proposal for rewriting the sentence is: "A lottery system could be implemented to add some randomness to the draft process."
And, as always, player salaries are a key sticking point.
The players union is pushing for a flat minimum salary of $775,000, while MLB initially proposed $600,000 and later increased its tier offers to $615,000 for inexperienced players, $650,000 for one year of experience, and $700,000 for players with at least two years under their belt, according to sources who requested anonymity.
Work to be done
The players want to discuss other pay-related issues, such as service time, revenue sharing among teams, and the luxury tax. The first topic is how teams use young players, often keeping them off the roster for just enough time during a season to extend the length of their contracts.
The 1995 CBA introduced a rule that imposes a luxury tax on teams that exceed the MLB's payroll threshold. Teams that exceed the threshold are taxed between 20% and 95%, with the higher rate for repeat offenders. The money collected is distributed to teams below the line, with top spenders like the New York Yankees and Dodgers helping keep smaller-market teams afloat.
The luxury tax has increased from $195 million in 2017 to $210 million, and the union is advocating for changes to the system to encourage more teams to invest in player salaries without penalty.
Local businesses in spring training areas like Phoenix are concerned that they may suffer if the exhibition games do not start on schedule.
In 2018, the Cactus League, held in Arizona, generated more than $600 million in economic impact from spring training games. This was significantly reduced to approximately $363 million in the shortened 2020 season due to the pandemic.
Topps, which sold its trading card business to Fanatics for $500 million, also has a reason to be concerned as the company historically uses spring training games to shoot photos of players for its new products.
Then there’s the risk of pushing away fans.
Joe Favorito, a sports public relations guru and a sports business professor at Columbia University, stated that the collateral damage resulting from a work stoppage should be given more consideration, particularly in light of the current circumstances. He emphasized that the fans are just as important as the business side and that no sport can afford to lose them.
Favorito, a New York Mets fan and partial season ticketholder, commended the franchise's efforts to keep fans engaged despite the interruption of offseason events. The Mets organized a trivia event at Citi Field and solicited feedback on how the team could improve during the lockout.
Favorito emphasized the importance of showing core fans that you care during a work stoppage. He warned that if games are not played, fan erosion may occur due to long memories and other alternatives for disposable income.
WATCH: MLB and Players’ Association meet but make no progress toward deal
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