Latest MLB plan includes sliding pay scale
Major League Baseball dropped a revenue-sharing plan, and instead introduced a sliding scale of compensation to the Major League Baseball Players Association on Tuesday, the first time the two sides have formally discussed economic issues in an attempt to open the pandemic-shortened season by the July 4th weekend.
The plan, three people with knowledge of the proposal told USA TODAY, proposes to pay players a prorated percentage of their salaries, with the players who make the most taking the biggest salary cuts.
The three people spoke only on the condition of anonymity because negotiations are ongoing.
Younger players who make the least amount of money would receive most of their guaranteed prorated salaries. The proposal also includes a sliding scale of compensation that guarantees players a percentage of their salaries at different intervals of the season, through the postseason.
Owners are concerned the postseason, when they stand to make generate the most revenue on TV rights fees, could be wiped out if the country is hit by a second wave of the coronavirus in October or November.
The players agreed on March 26 to be paid on a prorated basis, but owners are seeking a new deal with revenues expected to fall significantly short as result of the 82-game season and postseason likely to be played without fans in the stands. Players would receive pay cuts of more than 50%, and perhaps as much as 75% for the game's top-paid players.
The union views the pay cuts as being massive, and the initial reaction was not positive.
“Interesting strategy of making the best most marketable player potentially look like the bad guys," Milwaukee Brewers starting pitcher Brett Anderson tweeted.
MLB did adhere to the union’s request of dropping its proposed 50-50 revenue sharing plan.
The union was concerned that the revenue-sharing would lead to the introduction of a salary cap in future negotiations, while wary of further pay reductions, including the possibility of a percentage of their salaries placed in escrow.
The owners insist it’s necessary for the players take a further salary reduction because they will lose money during the regular season without fans in attendance. Yet, the owners also would be guaranteed $777 million in postseason TV revenue, which would be inflated to about $1 billion with the postseason format expanded to 14 teams instead of 10. The owners have discussed sharing a portion of the money with the players.
There’s no hard deadline for the negotiations to be completed, but the sides would likely need to reach an agreement by around June 6 for the season to start on July 4. Players and coaching staffs need time to report for the resumption of spring training, which would last three weeks at a team’s home ballpark or their spring-training site in Florida or Arizona.
Bob Nightengale