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    Service Time: Fixing What Is Clearly Broken


    Jeremy Nygaard

    “Service Time Manipulation” has become a common term in regards to baseball over the last few years. It has again reared its ugly head after comments made by former Seattle Mariners President Kevin Mather became public.

    Image courtesy of © Allan Henry-USA TODAY Sports

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    Mather, inexplicably, shared unspoken but well-known secrets about how teams… well, his team, specifically, will keep MLB-ready players in the minors to prolong team control for an additional season.

    This isn’t new and certainly isn’t a secret. The Cubs did it to Kris Bryant. The Blue Jays did it to Vlad, Jr. The Twins, who never played service time games under Terry Ryan, did it to Byron Buxton in 2018 by not bringing him back for September, while healthy, to leave him 12 days short of achieving a “service year.” Because of that, Buxton will enter his last year of arbitration after this season, instead of becoming a free agent.

    Some might argue that manipulating service time after winning a Gold Glove and receiving MVP votes is an even worse look than doing it before a player’s major league career begins, but I digress. That is not the point of this article.

    This is an idea of how to fix the problem. It’s just an idea. It’s not designed to solve all the problems; however, it is designed to eliminate “service time manipulation.” (Ultimately, teams and agents will continue to look for loopholes to best serve the side they are on.)

    Currently, players need to be on a major league roster for 172 days to get credit for a full year. There are exceptions, for example, if you’re on the 40-man roster and start the season on an optional assignment and get recalled within the first 20 days of the season, you get credit for those service days.

    Kris Bryant was not on the 40-man, so the Cubs simply held him down until 171 days were left in the season, selected his contract and knew that, no matter what, they’d have his service for almost seven full seasons instead of six.

    One solution would be to handle free agency the same way as Super-2 status and award the top group (for arbitration it’s 17%) of players with 5+ years of service time free agency at the conclusion of the season. I wouldn’t love it and teams would likely never agree to it. Could you imagine going into a trade deadline and not knowing if your best pitcher is going to be a free agent after this season or next season?

    Another solution would be to make all players free agent-eligible after three years of arbitration, which would essentially let Super-2 players hit free agency one year sooner. It would be simple enough, but teams would still control this and could potentially hold players down longer to miss the Super-2 threshold, thus extending team control for a year. (The advantage would be that the “threshold” isn’t known until the end of the season and that free agency is still three (or four) seasons away.)

    The problem with both ideas and the current method is they are both based on service time and clubs hold all the control over that. Therein lies the rub.

    So let’s peel this back even further, to when teams first acquire player’s rights.

    Without getting into all the minutiae of how everything works from initial player acquisition to free agency, the basic timeline goes like this:

    • Players are drafted (typically as high school seniors or third-year college players) or signed internationally (at 16 years old).
    • Teams sign players to a minor-league contract that can be renewed up to six times.
    • After four or five years (depending on how old the player was when acquired), teams must protect the player on the 40-man roster or risk losing him.
    • Once a player is on the 40-man roster, he can be held in the minor leagues for three (or four) years on “optional assignments.”
    • When a player reaches three years of MLB service (or if you’re a Super-2), you enter your three (or four) arbitration years.
    • Once a player reaches six years of service, he finally becomes a free agent.

    So, in theory, you can hold a player in the minors for seven years, add him to the 40-man for three seasons and then finally see him make his debut 11 years after joining the organization, potentially making him free agent-eligible up to 17 years after being brought into the organization. (This never happens, by the way. But could.)

    More likely, though, players are added to the 40-man when they’d be Rule 5 eligible (after four or five years), bounce up and down for a year or two and then are major leagues, hitting free agency 10-13 years after being drafted or initially signed.

    For reference, Byron Buxton and Jose Berrios were drafted in 2012 and will be free agent-eligible after the 2022 season. Miguel Sano, Jorge Polanco and Max Kepler were signed in 2009. While all three have signed extensions, Sano would reach free agent-eligible service time after the 2021 season, while Polanco and Kepler are likely to do it after the 2022 season. Juan Soto and Fernando Tatis, two of the fastest moving prospects, would hit free agency 10 years after becoming professionals.

    So let’s eliminate “service time” all together from free agent eligibility as it seems to all balance itself out over time anyway.

    Here’s the idea:

    If you’re signed at 19 or older, teams get 11 seasons of control.

    If you’re signed at 17 or 18, teams get 12 seasons of control.

    If you’re signed at 16, teams get 13 seasons of control.

    If you miss a significant amount of any season (“significant” can be negotiated or defined by someone independent… but I’m thinking Tommy John surgery), add one year of control.

    After your third season accumulating service time in the Major League, you’re eligible for arbitration. (If you are on the roster for one day or every day, it counts towards the three seasons.) Every season from the fourth season until free agency, you are eligible for arbitration.

    If you win League MVP or Cy Young at any point before your last two years of control, the last season of control becomes a player option at a price to be determined and accepted or declined prior to the last season of control.

    The motivation for everyone now becomes getting your best players to the show quicker. For teams, it is more seasons of your player; For players, it is more chances to make money.

    What do you think? Is it time to abolish the current rules and start over? Or do we simply adopt the rules laid out above?

    Disclaimers:

    Are the 11, 12 and 13 years of control the right lengths? I don’t know, but it’s a start. And it’s close.

    Whenever I say “arbitration,” I’m talking about a process that helps determine salaries. I think the current process is garbage, but how to fix arbitration is a story for another day.

    Does the ability to reduce control have to be tied to winning MVP or Cy Young? Absolutely not. Not specifically those awards nor only those awards. Could an independent metric like WAR be a factor? Yes! All told, this would be a great thing to negotiate in the CBA. I just don’t want it to have anything to do with the amount of days a player has spent in the major leagues.

    I used Soto and Tatis as examples and, as such, they would basically spend three extra years in the majors before free agency, which theoretically seems like a not great deal for them. Players could and would still sign big deals like Tatis did. On the flip side of that, Soto *could* go through the arbitration process six times. Could you imagine how much money he would stand to make in those final three years? He could be the highest paid player in baseball.

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    Baseball had total control of all players until Curt Flood led to change. Clearly, it seems from the obvious manipulation of the current system by baseball management, a new form of change is now near. What that looks like will be up to the next CBA.

     

    The game is negatively impacted when a team uses a lesser player in championship competition due to an ability to extend years of control for a player's years of service. Individual careers are also affected. Baseball owners and management would be stupid to not seek a continuation of the current system and would be even more pleased with a return to the good old days. The union has to see that there must be some changes. A compromise of sorts will need to be worked out between the players and owners that each can live with going forward after this season. We, the fans, will live with that system in the same manner as other changes that have occurred down through the decades.

     

    A question that keeps coming back to me is how can people see a person's choice of employment, regarding location and working conditions, as reasonably tied down for a period of a decade. Why? There must be some parallels in different careers or jobs, but I cannot think of a job where one is tied to an owner who picks them and then controls their destiny for a decade or much more. Keep in mind that baseball is a closed system. 

     

    I appreciate that owners deserve to make money like anyone else and repeatedly tell young people that they better hope that their employment offers some financial gain for their employer or they will soon be out of a job; no mon, no fun. However, I would expect to see a reduction in those service years in the next CBA. 

     

    We can be certain baseball will survive no matter how radical a change. It is almost impossible to understand where the union will make a stand. If I had to draw an arbitrary line as the post discusses, a quick pick would be an age - free agency at 24/25. Then again, perhaps the union prefers arbitration years. Sure to be interesting.

    I don't see the teams manipulating the system as some sort of moral disgrace. It's business. Both sides use loopholes at the drop of the hat if they deem it best for themselves. Both sides work out a system and agree to the conditions of the contract. 

    Player contracts are a microcosm of the player-owner contract. If an individual player feels jilted by a loophole in the league contract, his beef should be with the player's association and the team he plays for. The player's association can negotiate the question when the next contract comes up. If the player believes his team did him wrong, he can take his services elsewhere when he becomes a free agent. 

    As to terms of location and being to to an owner and a location for a decade, it's also part of being in a league system. It isn't a normal job. Buxton is as least as much an MLB player as he is a Twin. MLB rules are based on collective bargaining and play a large part in determining how much a player makes during his career. Part of being a successful league is having a degree of parity. In the long run, the continued success of the league makes both sides richer. 

    To me, these questions are the business of the players and the owners. Both sides are equal. There are no real victims of immoral manipulation. It only becomes personal when and if it comes to a strikes or a lockout. 

    I think a good solution may be that all players are FA at age 27 season, if they turn 27 prior to season starting then it would be that year, kind of like how they do little league age thing.  This would not matter how they were signed.  Then there is no cheap 3 years thing, every year is arbitration year, but there is no requirement that money goes up.  So if a player has a good year at say 23, they get a nice raise for the next season, but if they play bad then the next year it drops back down.  Of course contracts can buy these years out.  You could use something like WAR, not saying specifically that, but something like that to put them in pay brackets for arbitration.  Then boom 27 regardless of how many years at MLB level they are FA.  Part of plan would also take away option years, because there would be no need to require a guy being on MLB roster to get service time because they would be FA at 27 no matter what.

     

    This would eliminate no manipulation of service time for even keeping prices low.  Only way you keep them low is if you do not play them.  I know a lot of teams would not like this route because they could lose those 3 super cheap years and few cheaper years of MLB play, but with the elimination of option years there is no forcing a guy on the MLB roster if you feel he is not ready.

     

    No plan will be perfect and there will be flaws.  I am sure this one does.  I was mainly thinking on the fly without playing it out in my head how it can be exploited.  The biggest issue I can see is college players will have much less time in organization, which may push teams to drafting them less unless they are MLB ready or nearly ready.  Maybe there could be if they were college drafted you push to 28 or 29.  This would lead to less guys picking college over signing as a HS drafted guy, but not worried about that in this plan. 

    My only real concern with the new CBA is how it impacts parity and the relative ability of our team to compete. I don’t know why any fan is worried about how much the players get. Player compensation has increased and a mind boggling rate for 50+ years. The average TD household would be earning $3.17M annually if our wages had increased at the same rate. The average player makes almost 100 times the average adult in the US. Top players make more than 500 times the average. How much is enough? Why are we worried about player salaries while paying a hefty toll to attend games in a decent seat and $10 for a beer. Let’s worry about the sanctity of the game and further advantaging large markets is not consistent with protecting the game.

     

    I really doubt significantly increasing revenue sharing is going to fly. How do you ask the large market owners to agree to drastically reduce the value of their franchise and their income? The new owners would really be taking it in the shorts. The players would certainly not agree to anything that would have significant negative financial impact. Having said this … Increased revenue sharing and anything else that improves parity is what I most hope to see from the new CBA

     

    I also don’t see the financial upside for players most seem to think will result from less years of control. Teams are not going to spend more because players are free agents earlier. Their budgets are based on revenue. A spending floor would increase spending somewhat because those clubs have available funds. The downside would be that they would be forced to sign veterans instead of developing their prospects. I assume that’s not what we would want as fans if our team was rebuilding.

    You never mention that profit is climbing faster than pay..... as a fan, I'd rather the money go to players than owners. That's why this fan cares. I also want them, since they are humans and not cogs, to have more say in where they work and who their employer is. I know you don't agree, I'm merely answering your loaded,biased, question.

     

    You never mention that profit is climbing faster than pay..... as a fan, I'd rather the money go to players than owners. That's why this fan cares. I also want them, since they are humans and not cogs, to have more say in where they work and who their employer is. I know you don't agree, I'm merely answering your loaded,biased, question.

     

    I did not mention it because I don't know if this is true and neither do you. Once again you take a hard stance on a conclusion that is a product of a poorly conceived conclusion. Revenue grew more than wages the last couple of years. You don’t know what happened to profit. Do you suppose the Cardinals expenses went up going from 250 to 400 employees. Did they perhaps spend less on players because other costs absorbed the available budget dollars? I mention the Cardinals because of an article where this was mentioned. All of the teams are investing in non-player employees and programs. The problem here is that you don't understand  an increase in profit does not insure an increase in profit.

     

    Regardless, I am not the least bit concerned how the new CBA impacts player compensation or team profits. The context of my comments was a product of poster’s feeling bad for the players. MLB players are the most fortunate group of individuals on the planets. The suggestion that it’s too onerous they be tied to one team for a long period of time is ridiculous. They are perfectly willing to be tied (many even prefer) to be tied to one team as long as their income is maximized.

     

    I also don’t measure the adequacy of compensation based on if it goes up every year. I don’t measure fairness based on if a company is profitable or not. My wife’s company is wildly profitable. She still gets paid based on what the market is willing to pay for her skillset. I ask questions like what would an alternative employer, in this case another league be willing to pay? The next highest paying league pays about 12% of MLB wages. This would lead me to conclude MLB players are paid very well. I ask would these players be happy with ¼ of the pay if that’s what revenue dictated. I have a hard time feeling like someone is not adequately compensated if they would be willing to do for ¼ of the wages.

     

    I don’t care what happened the last couple of years. I look at how a given group has done financially over a decade or two or even longer if good data is available. In other words, how has MLB player compensation grown compared to other professions? How high is their compensation compared to other professions? When I do this, I find that MLB compensation grown at the same rate as every other American over the past 50 years, MLB players would earn $198,000 on average. Did we consider them disadvantaged or taken advantage of in 1970? Since then, there income has grown 22X more than the rest of America. I find the concept that they are not paid enough to be absolutely absurd.

     

    I also don’t care about owner profits. That will be governed by market forces that they all signed up for. What I care about is all of the teams having a reasonable chance at success. I care about a good product on the field for as many teams as possible. Therefore, I am not worried about length of control. If players don’t find the $4.4M average salary adequate to relinquish the right to choose where they play their first 6 seasons, they have the right to pursue a different profession just like all of the rest of us.

    I don't think that there is a totally fair solution for every player and every team so there is always going to be controversy.  I would like to see a floor and ceiling cap.  And how about making all players free agents by age.  I would propose a restricted free agency for all players at age 27 and 28, unless previously signing an extension,and unrestricted free agency at age 29.  If players want to use the restricted free agency (two year period) contracts would be restricted to one year contracts. Yes, teams could promise the player (against the rules of course) better things to come in the future, but there would be nothing to hold the team to that promise if the player got injured or went in the tank. If a player used the unrestricted free agency at age 27, he would be forced to use it again at age 28, however after signing his age 28 contract, he could sign an extension after that years all-star game.  Is this way off the wall?  

     




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