2/19/18

Mike Fiere - More Labor Strife?



While perusing Mack's Apples article this morning, I noticed that the "potential labor strife" that has been grumbled about of late has gained some traction and it seems that it will not go quietly into the good night (despite some recent movement in the free agent market led by the Mets of all teams). It's interesting because like most topics of discussion, there are many sides to the issue and your view usually depends upon your perspective.

From the outside, the casual fan's reaction to this "belly aching" is one of confusion because "those guys are getting paid millions of dollars to play a kid's game"!

For some perspective, the MINIMUM annual salary for a ballplayer in 2018 is roughly $545,000 dollars per year, which equates to approximately $262 dollars per hour (nice work if you can get it).  Even better, the AVERAGE annual salary for all of MLB for the 2018 season will be a shade over $4,400,000 dollars, or an absurd $2,116 dollars per hour!   This doesn't include additional sources of benefits and income like a healthy per diem on road trips (over $100 dollars per day), luxury accommodations, transportation (air, ground) and access to trainers that would cost the average citizen a ton of cash.

Delving a bit deeper, the AVERAGE annual household income for an American family is a shade under $60,000 dollars per year, or roughly $29 dollars per hour (for multiple earners). 

When you break the numbers down a bit, it  puts things into perspective, right?

Before anyone gets fired up, this is NOT a rant on how ballplayers make too much, etc.  I simply wanted everyone to see what the numbers actually look like before I start the second part of this article.   I TOTALLY understand that all of the players in question (even the fringe players) are infinitely better then any one of us "regular guys and gals" at this sport and that they deserve to be paid accordingly.  I am also NOT a shill for the Owners who likely have income streams many times larger then the listed statistics. 

What does bother me a little bit is that the source of this "potential labor strife" is the most recent edition of the MLB Labor Contract that was negotiated and agreed upon in December 2016.  For those of you who enjoy reading such documents, here is a link to the information (https://www.mlb.com/news/details-of-mlb-mlbpa-labor-agreement/c-210125462)

In short, the agreement was reached late in 2016 and it covers FIVE full seasons, terminating in December 2021.  The last time I checked, it is February 2018 and this season is only the second season of the five that are included in the listed deal.  You know, the deal that both sides AGREED to!  Perhaps there is a bit of "buyers" remorse on the players' part, but isn't it a bit early for "jockeying" to take place for the next deal that is still three and a half years from now?

Perhaps I am a bit "old school" but if you come to an agreement with someone, the expectation is that both sides "gave up a little to get a little".   Another term for this is "compromise" and every labor contract is a blend of what both sides want.  The current agreement falls under that philosophy and the fact that the Player's Union did not see the current situation unfolding is their fault, or more specifically the fault of their representatives that took part in the bargaining process.  The solution is to negotiate a better contract the next time around, not to act like a spoiled child and threaten to violate the terms of the current deal with a possible work stoppage almost immediately after it went into effect.

In my humble opinion, the main issue at play this off season comes down to a "cost/benefit" analysis and it can be used to analyze many different things.  For example, if you are selling a piece of real estate, or perhaps a random "bauble" at a garage sale, you try to price the item appropriately.  Ask too much and you will be waiting until you drop your price before the item sells.  If you price the item appropriately at the outset for the expectations of the market, your item is much more likely to sell quickly.

The current free agent market is over priced, plain and simple.  Teams are "waiting the situation out" until the prices come down a bit and the cost and benefit are in close proximity to each other.  Look no further then Jay Bruce's situation.   He was asking for too much money and/or too many years for his next contract when free agency began.  However, as time passed, his demands dropped to an acceptable level and the Mets made him an appropriate offer. 

Another issue is the penalties that accompany certain free agents who were offered and declined a qualifying offer from their previous team(s).  Who wants to sign Lance Lynn for an above market contract that will also cost you a second round pick in the next draft AND half a million dollars in International Bonus Pool money?   The answer is "no one" and that is why he is still seeking a new team, despite how talented he is.  It isn't so much "collusion" as it is poor "cost/benefit" ratios that are the product of the last labor deal.

Hopefully, clearer heads prevail and the next few seasons do not suffer from a work stoppage.  The time to air grievances and to ask for a better deal are AT the bargaining table and NOT fifteen months into a five year deal that has already been signed, etc.

My advise for the Player's Union is to find a better bargaining team next time.


5 comments:

Tom Brennan said...

It is a crap shoot, going free agent, and guys can ask the moon - pragmatists like Bruce ask, and then settle.

The players should not have agreed on a 2nd round pick AND $500K in Int'l $$ - that has to hurt them, and they are the best-in-class and do deserve to sign for more $$. As you said, the players should have negotiated better...a 2nd round pick and, say, $200K would still have hurt a signing team, but not overly deterred them from signing a Lance Lynn type.

Robb said...

first, yeah i dont see a strike happening until maybe 2021. Second, next year we are going to be talking about the crazy money teams are giving out. Third, the players got worked. They put a guy up to bat for them in labour negotations who is the equivalent of you or me going against Pedro martinez. Lucky for them, its todays Pedro not prime pedro.

3 things seemed to have happened. Teams got smarter about long term deals, even hosmers declines at the end instead of increasing (compare pujols structure you'll get it). The players out there arent bidding war players, they are all flawed. either old, off bad seasons, at positions of strength or just guys teams arent interested in at their perceived value. Lastly the rich teams saw an opportunity to reset their tax payment save themselves money in the long term. Ironically if haper, Machado, Nolan any of these break the bank guys were out there this year, no one would be talking about the reset, bc that player is worth it.

Heres the thing, if it wasnt for Hanley or Panda, JD martinez would have gotten his 25 per for 6 years from the red sox, but its hard to spend 75mm to fill one slot, when theyve already wasted 42 million committed to it.

Reese Kaplan said...

In an earlier piece I'd done on the labor decisions against MLB owners it was the baseball commissioner who chided the owners for doing it to themselves by bidding up the prices for players. I think the term for what we're seeing now is a market correction.

Eddie from Corona said...

Great Artilce and excellent comments by Robb

bill metsiac said...

Off-topic question for Mike. As I read anything, I pronounce the words in my head. What is the pronunciation of your name? My guess would be FRY-er.