Sources: Players balk at MLB's proposal to cut salaries
The league's proposal, which includes bonuses if postseason games are played, offers lower-salaried players a higher percentage of their expected wages and would give some of the game's biggest stars a fractional cut of their salaries. 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%
Under this formula,
Los Angeles Angels star
Mike Trout, who at $37,666,666 has the highest full-season salary in baseball this year and would make $19,065,843 on a prorated basis over 82 games, would have a base salary of $5,748,577 -- though players would be paid for only games played. Trout could make upward of $2.5 million more under the proposal if the league completes the World Series.
The proposal includes $200 million in playoff bonuses -- $25 million for the completion of the division series, $50 million for the league championship series and $125 million for the World Series. A significant amount of the postseason bonuses would go to higher-paid players, with minimum-salaried players receiving $5,512.
Although the proposal would keep a larger proportion of players close to their whole salaries -- about 65% make $1 million or less and would receive more than 80% of their prorated salaries -- players young and old objected to the plan, which they believe runs in contrast to a March agreement with the league that they believe legislated that players be paid full prorated salaries upon the return of baseball. Most MLB players earn $1M or less and would get 43.8%+ of salary. Over 250 players earn $5M+ and would be cut by 67 to 77 percent.
The league believes language in the deal calls for good-faith negotiations with the union about the economic feasibility of playing with no fans, which MLB expects to do upon a return. The league initially considered proposing a 50-50 revenue split with the players, citing massive losses due to the
coronavirus pandemic. MLBPA executive director Tony Clark immediately rejected the idea, equating it to a salary cap.
In the March deal, the league agreed to pay $170 million to players regardless of whether there is a season. That final payment to players was due Sunday. Although there are no formal negotiations set, the players and league are expected to reconvene at some point this week as a soft deadline approaches.
For the league to get a full three weeks of spring training before an early July start date, an agreement would need to be struck in early June.
The proposal got a lightning-quick refusal from the union, as players are reportedly “livid” about that initial pitch:
“I have never seen a collective response like I’m seeing today from the players,” an MLB agent told
Ken Rosenthal of The Athletic. “They are livid.”
While this proposal would help low-earning players keep the majority of their money, it would greatly hurt the highest-paid players, who would see their earnings greatly reduced:
The idea of the highest-paid players potentially giving up something so that those who make less can reap the benefits isn’t inherently wrongheaded. But this — this felt absolutely egregious to players. And it’s why their counter, whenever it comes, won’t look anything like this.
— Jeff Passan (@JeffPassan)
May 27, 2020
Gerrit Cole, who signed a nine-year, $324 million deal with the
New York Yankeesin the offseason to become their ace pitcher, would be perhaps in a more difficult position given that missing a couple of starts would greatly reduce his salary:
“Here’s where I think MLB is screwing this up,” an agent told Rosenthal. “They are approaching this like a CBA negotiation. CBA negotiations usually happen in the offseason where players are disconnected, not paying attention and the deals are agreed upon before the season, so they don’t feel any financial impact unless they are a free agent the next year and get screwed.
“Since their whole paycheck is on the line and there’s nothing else going on in their lives, they’re completely invested, they’re getting educated and they’re following every step. It’s eye-opening for a lot of them. They’re seeing a greedy side of the owners and (commissioner Rob) Manfred that they have ignored in the past. This is gonna spill into the CBA negotiations for next year and the players are gonna take a stronger position.”
Sources: Players balk at MLB's pay cut proposal