MLB can cut pay, lay off managers, coaches starting May 1
Minors prepared to accept cut to 120 affiliates
NEW YORK, April 22, (AP): Baseball Commissioner Rob Manfred has made a move that allows teams to lay off or cut the pay of major and minor league managers, coaches, trainers and full-time scouts starting May 1.
Manfred has suspended uniform employee contracts that cover about 9,000 people, including general managers on some teams. Manfred cited the inability to play games due to the national emergency caused by the new coronavirus pandemic.
“Our clubs rely heavily on revenue from tickets/concessions, broadcasting/media, licensing and sponsorships to pay salaries,” Manfred wrote in an email Monday, a copy of which was obtained by The Associated Press. “In the absence of games, these revenue streams will be lost or substantially reduced, and clubs will not have sufficient funds to meet their financial obligations.”
“The impact of the suspension of the UEC on your personal employment situation will be determined by your club,” Manfred said.
Manfred’s intention to suspend the contracts was first reported by The Athletic.
Arizona, Atlanta, Baltimore, Boston, the Chicago White Sox, Cincinnati, the Los Angeles Angels, Milwaukee, Minnesota, the New York Mets and Yankees, Philadelphia, San Diego, San Francisco, Seattle and Toronto are among the teams that have committed to paying full-time employees through May, and Miami, Pittsburgh and Texas will pay fulltime baseball operations staff through the month.
The Chicago Cubs will pay those on UECs and front-office staff through their May 29 paychecks, and Detroit said it has no plans for layoffs or furloughs
Major League Rule 3(i) requires that UECs must be signed by all managers, coaches, trainers and salaried scouts, and some teams include additional baseball operations staff.
“Pursuant to the terms of the UEC, the club’s exclusive right to your services will remain in effect during the period of the suspension such that you will not be permitted to perform services for any other club,” Manfred wrote. “I fully recognize the hardship that this health crisis creates for all members of the baseball community. Central baseball and the clubs are doing everything possible to try to minimize this impact for as many employees as possible.”
Manfred said the Baseball Assistance Team charitable organization “is available to consider grant applications on an expedited basis for those facing significant and immediate financial hardship.”
Meanwhile, the minor leagues are prepared to agree to Major League Baseball’s proposal to cut guaranteed affiliations from 160 to 120 next year, a person familiar with the negotiations told The Associated Press, a plan that would impact
hundreds of prospects and cut player development expenses.
The person spoke Tuesday on condition of anonymity because no announcements were authorized. The development was first reported by Baseball America.
An electronic negotiating session is scheduled for Wednesday.
In informal talks, parties have discussed the possibility of a radical overhaul in which MLB would take over all of many of the duties of the National Association of Professional Baseball Leagues, the minor league governing body, another person familiar with the negotiations said.
Instead of franchise affiliations, there would be licensing agreements similar to those of hotel chains, that person said. MLB would then sell sponsorship, licensing and media rights,
a switch that may lead to decreased overhead and increased revenue.
“There have been no agreements on contraction or any other issues,” the National Association said in a statement Tuesday, adding it “looks forward to continuing the goodfaith negotiations with MLB tomorrow.”
In talks to replace the Professional Baseball Agreement that expires after the 2020 season, MLB last year proposed cutting 42 affiliates, including Double-A teams in Binghamton, New York, and Erie, Pennsylvania, along with Chattanooga and Jackson, Tennessee.
The plan would eliminate affiliations for the 28 teams from four Class A Short Season and Rookie Advanced leagues that do not play at spring training complexes.