MLB's Press Release about Minor League Player Wages

[Mr. Brooks]

I agree the MLBPA should be helping, and they have plenty of fault, but they don't pay the salaries, the owners shouldn't need their arms twisted by the union to do this.

 

Other business models can figure out how to pay 100 entry level employees livable wages, but not the MLB?

True, but it's because of competition and market forces, not out of the kindness of their heart that any business owner pays what they pay.

 

Also, I'm not sure that I'd call minor league entry level. I think rookie in MLB is entry level, milb is more apprenticeship or intern, which often pay less in many trades.

[Mike Sixel]

 

They should pay them more, but he makes a good point about tracking hours.
This isn't your typical "punch a time clock" job Mike.
If you are a janitor or a waiter or something it's pretty black and white what is work and what is not. It's a bit more grey when you are an athlete.
Even something that can legitimately be billed as work related, say going to the gym, are you just going to take a players word for how many hours they worked out for? Do you post a team rep in the gym to track them? What if they work out at some random gym near their home?
What if they are at the gym, but standing in a corner on twitter for 20 minutes between sets? Is there someone watching to make sure he punched out for that time?
Take batting practice. Not everyone can hit at the same time.
Three players are standing around laughing watching a teammate take BP, are they getting paid for that time?
How many hours are they "working" on a road trip? Are they getting paid the whole time? Even when they are sleeping?

That's a tough profession to work hourly, IMO. It should be salaried, and yes they should probably be paid more.

 

the lack of ability to track hours is a BS excuse. There are about a million easy ways to pay them more, none of which require creating some kind of fake administrative burden.

[Vanimal46]

It's funny to see the excuses that Manfred is coming up with to avoid this issue. It first started off with completely over exaggerating the number of minor league players and the HUGE costs to bump up their salaries.... Now this excuse of well, it's not about the money (it is), it's just such a burden for our team to track hours, blah blah blah. 

It's a pretty desperate move by the commissioner of a multi-billion dollar brand to try and go down in the weeds explaining how difficult administrative tasks are. 

[Vanimal46]

But hey, on a positive note, even right now they're still paying the players more than the NFL minor leagues! 

[Mike Sixel]

 

But hey, on a positive note, even right now they're still paying the players more than the NFL minor leagues! 

 

heh, good point.

[nicksaviking]

 

True, but it's because of competition and market forces, not out of the kindness of their heart that any business owner pays what they pay.
 

 

Good point, they don't have competition to drive fair wages. Seems like a good reason to once again explore rescinding MLB's anti-trust exemption.

[Mr. Brooks]

the lack of ability to track hours is a BS excuse. There are about a million easy ways to pay them more, none of which require creating some kind of fake administrative burden.

Right, there are. But Munford said he was opposed to paying them hourly, which I agree with.

I didn't see where he said he was opposed to paying them more.

[Mike Sixel]

 

Right, there are. But Munford said he was opposed to paying them hourly, which I agree with.
I didn't see where he said he was opposed to paying them more.

 

Other than opposing it every step of the way, and other than this is exactly how businesses talk when they don't want to pay more, sure. This is 100% how businesses make it sound like they just can't figure out how to pay more....which is a lie, of course.

[Guest]

The argument that really annoys me, for all those that rare against living wages, in MiLB and beyond, is when they say that if they pay a decent wage the business can't survive. If your business model requires that you pay wages that don't allow people to live from their full time job, then there is something wrong with your business model, not with the people asking for a living wage

True, but I wonder if baseball would become more like football and let taxpayers subsidize college development programs if they were required to pay minimum wage. If you've got a problem with baseball's financial structure, which is a reasonable gripe, then you should be really upset about football.

[laloesch]

It's really not that different outside the sport in corporate America.  In my line of business if your a salaried "exempt" employee working in the office, once you hit 40 hours you work for free.  It's a contradiction in my opinion regardless of what you make.  If you are working you should be paid for it plain and simple. Not some clause stating that because your "an exempt employee" you can't collect and are therefore expected to work 10 hours of over time each week for free.  It's BS!  Should be illegal.  

 

Minor league teams could easily track this and keep an eye on guys.  If your not in the clubhouse, on-the field or at the team's workout facility you don't get paid, simple as that.  There are plenty of trainers, coaches, and administrative folks around to make sure the system doesn't get abused.  No different than any other employer.  I don't like Manfred's excuse.  

 

I ALSO don't like that players like Pelfrey or Nolasco can sign these huge guaranteed deals and stink it up year after year after year without repercussion.  I would compare the situation to a co-worker of yours getting hired, signing an employment contract and then start slacking off, showing up late for work, not doing their job adequately, complaining and still getting paid big bucks while you and the rest of your crew have to pick up the slack and deal with the drama they create and watch them get paid.  Repulsive.  

 

I hate guaranteed contracts.  It cheapens the sport and makes it harder for younger better players to advance and earn what's there's and replace low skill guys who should have been fired years ago.  Kinda like being forced to watch Ricky stink it up year after year while he complains how he hates Minnesota, etc.,  and YOU the fans still have to pay for him at the gate.   

[Major League Ready]

 

Other than opposing it every step of the way, and other than this is exactly how businesses talk when they don't want to pay more, sure. This is 100% how businesses make it sound like they just can't figure out how to pay more....which is a lie, of course.

 

Other than opposing it every step of the way, and other than this is exactly how businesses talk when they don't want to pay more, sure. This is 100% how businesses make it sound like they just can't figure out how to pay more....which is a lie, of course.

Mike,

This is an incredibly one-sided point of view.  MLB payed players 3.6 billion and an average of nearly $4M/player.  To put that in context, the average player makes 100 times the average American for playing a game.  They would work for a tenth the income in a heartbeat if that’s all the revenue model supported.  To put this solely on ownership is incredibly naïve and biased.

 

Players making over $5M/year collectively make nearly $30B.  If 1% of the salaries paid to those players making $5M or more annually was redistributed to MiLB players, every minor league player could be given a $925/month raise.  (assuming 180 MiLB players per organization)  The MLBPA  could make this happen in a heartbeat if the players making the most money would be willing to fund it.  1% freaking percent for guys making more than $5M/year.  Please don’t talk to me about greedy companies when players are making this kind of money and won’t take care of their own.

[jimmer]

 

Other than opposing it every step of the way, and other than this is exactly how businesses talk when they don't want to pay more, sure. This is 100% how businesses make it sound like they just can't figure out how to pay more....which is a lie, of course.

There is SOOOOOOO much money in the game and teams are making SOOOOOOOO much money, that it shouldn't be hard to figure a way to pay the minor league guys better wages.  Doesn't matter what they make in the majors, that's a whole separate issue.

[TheLeviathan]

Like it or not, the side that has control over this is the players, not the league.  Could the league do something unprecedented in collective bargaining and insist on something for the other side at their own expense?

 

Sure.  But that's just not how it works in any industry where worker compensation is bargained.  We should be asking why the MLBPA uses these guys as leverage every bit as much as we rip the owners.

 

If we want to rip the owners, let's talk about them building their own stadiums.

[diehardtwinsfan]

I think you have to rip the both.  The MLBPA is just as guilty in this scenario.  I'm hoping that this CBA takes some steps to address this, and with all the money coming into MLB right now, it shouldn't be that hard to set aside some funds to fix this in some way.

 

Goodness, if the teams just built dorms at each of their minor league parks at their lower minor facilities and provided 3 meals a day for everyone, this would be solved.  They wouldn't even have to raise their wages.  That's a 7 figure some of money when it's done, likely less than the cost of a utility player.  Plus there's the added benefit of having some control over the player's nutrition.  That's a good thing.

[Mike Sixel]

Where did I say the MLBPA was not also at fault?

 

But, ultimately, the owners pay all the players.....if they wanted, they could pay more. It is up to them, ultimately. 

 

If I have to type every side of every discussion, and talk about everyone that might be at fault, Brock needs to add more storage....

[TheLeviathan]

 

Where did I say the MLBPA was not also at fault?

 

But, ultimately, the owners pay all the players.....if they wanted, they could pay more. It is up to them, ultimately. 

 

If I have to type every side of every discussion, and talk about everyone that might be at fault, Brock needs to add more storage....

 

It's not that simple when you are talking about collective bargaining.  Every penny, and how it's allocated, is agreed upon by both sides.  If the owners showed up in the minor leagues and showered players with money I GUARANTEE you the player's union would have a fit.  They'd see it as trying to undermine them or influence negotiations or something.

 

It's simply not as easy as you keep stating.  For me, this is about 70% the union's fault.  They are the ones who are representing and stiffing the minor leaguers.  The 30% that the owners have is for allowing them to do it.

 

My extensive beef with MLB ownership has more to do with the way they are stiffing us, the paying customer.

[biggentleben]

BA's Ben Badler basically put Rob Manfred to shame. Beautiful piece.

[mlhouse]

The problem with this argument is economic.  

 

If you do not pay enough in wages you will have a shortage of workers or a lack of quality.  Minor league baseball does not have that problem.  If anything, they have too many applicants for the available jobs.  

 

Maybe someday in the future the teams will notice that they are not getting enough of their draft picks or even undrafted players to sign contracts to field all of their minor league teams.  If that situation arose, then the teams would have to consider raising the minor league compensation to address such a shortage.

 

 

 

 

[biggentleben]

 

The problem with this argument is economic.  

 

If you do not pay enough in wages you will have a shortage of workers or a lack of quality.  Minor league baseball does not have that problem.  If anything, they have too many applicants for the available jobs.  

 

Maybe someday in the future the teams will notice that they are not getting enough of their draft picks or even undrafted players to sign contracts to field all of their minor league teams.  If that situation arose, then the teams would have to consider raising the minor league compensation to address such a shortage.

 

Part of that is a level of prestige assumed with MLB baseball. A number of players have already taken the route of going through Japanese baseball or Australian baseball for better pay. As other foreign leagues offer better than the minor leagues for lesser draft picks, some guys will head there. There still are plenty that will keep taking less because they believe the route to MLB is through the minor leagues, but ask Alfonso Soriano how going the unconventional route worked. More guys could go there and force MLB's hand.

[Major League Ready]

 

It's not that simple when you are talking about collective bargaining.  Every penny, and how it's allocated, is agreed upon by both sides.  If the owners showed up in the minor leagues and showered players with money I GUARANTEE you the player's union would have a fit.  They'd see it as trying to undermine them or influence negotiations or something.

 

It's simply not as easy as you keep stating.  For me, this is about 70% the union's fault.  They are the ones who are representing and stiffing the minor leaguers.  The 30% that the owners have is for allowing them to do it.

 

My extensive beef with MLB ownership has more to do with the way they are stiffing us, the paying customer.

I had written almost the same thing.  When I went to post it I saw you beat me to it.  The top 30 players made $725M.  The 30 teams collectively made $625M according to Forbes.  With 3.6B paid to players and an average salary of almost $4M/year, the problem is not what the owners are paying out but how it is distributed.  The players are getting paid insane money and they have simply not looked out for the MiLB players.  Talk about greed!

 

http://www.forbes.com/mlb-valuations/list/#tab:overall

 

As part of the next CBA, the teams should all agree to construct housing and provide 3 meals a day.  The MLBPA should agree that 1% of any contract in excess of $5M go to a fund to be distributed among minor league players.  That would give the players roughly $1,000/month raise during the season.  They should be given the option to remain in the housing during the off-season. 

 

The raise is salary and the housing/meals would be significant.  The teams would make a significant contribution in housing and meals.  Only the players making 10X or more what they would be willing to accept would contribute to the salary increase.   Seems pretty fair those so fortunate to make an insane amount of money playing game be willing to contribute 1%.  Kershaw will have to survive on $32,670,000 instead of $33,000,000 per year.

[mlhouse]

 

Part of that is a level of prestige assumed with MLB baseball. A number of players have already taken the route of going through Japanese baseball or Australian baseball for better pay. As other foreign leagues offer better than the minor leagues for lesser draft picks, some guys will head there. There still are plenty that will keep taking less because they believe the route to MLB is through the minor leagues, but ask Alfonso Soriano how going the unconventional route worked. More guys could go there and force MLB's hand.

 

And if they did "force" the employers hand then they might need to adjust.  

 

To acquire talent that they need the teams dole out millions of dollars in signing bonuses.  Once those bonuses are exhausted, the remaining draft picks need to make the decision, their own objective decision, whether they want to continue to play baseball.  The decision is based on many factors and each individual weighs them in their own way.  Some might believe they truly have a chance of making the big leagues.  Others might just want to bum around for a while continuing to play the game.  Others might not have other economic alternatives.

 

The other side of the economic equation is that minor league baseball is not a hugely profitable activity. IF you look at the Ft Myers MIracle, their total season attendance is only 125,000.  My guess is that the entire profit margin of teh operations comes from the money they get from their major league affiliation.

 

THe truth is, the minor league baseball could probably pay a salary of $0 and they would still fill their rosters.