26 Years of Labor Peace is Over

By: Mike Carter

Major League Baseball now finds itself embroiled in another stalemate that has resulted in a lockout as of December 1^st. There has not been labor strife in MLB since 1995. 

It’s really easy to understand the crux of the problem but harder to take a side. And I guess we do not have to take a side.

Starting in late November and through the lockout, major league owners and their teams have spent almost $1.8 billion in salaries. That includes, according to CNBC, $1.4 billion in ONE day. Key contracts went to Corey Seager (ten years, $325 million to the Texas Rangers), Marcus Semien (seven years, $175 million). Notice that the Texas Rangers, formerly moribund in recent years, spent $500 million to overhaul their middle infield last week. That’s half a billion dollars. The free-wheeling New York Mets purchased the services of four standouts, highlighted by Max Scherzer for three years and $130 million. These are mind-boggling numbers, and I do not begrudge the players for getting every dollar possible.

The two sides, labor versus ownership, want different things. You may recall that a few months ago, there was quite a bit of discussion about the rules of the game itself: pace of play, robot umpires, universal designated hitter, the baseball itself, extra innings rules, salary floors, and salary caps. Now, it seems that the shift has gone to what it usually seems to come down to here, which is money.

What I don’t want to hear as a fan at the end of this is people crying poor. Owners refuse to open their books and show everyone the truth, leaving us to speculate.  Last week I scratched my head when the Chicago Cubs’ owner, Tom Ricketts, spent $71 million on three years of Marcus Stroman (more power to him, get your money) after telling all of Chicago the team had suffered “Biblical” losses in 2020. Know who suffered Biblical losses?  Those who lost loved ones to Covid-19, or those that last jobs and livelihoods due to the pandemic, not a billionaire owner. I don’t mind if you are upset about taking a loss but give us a break. I know families and students that lost everything last year. Tom Ricketts and company were not in that group. Give. Me. A. Break.

It’s been time for owners to open their books and show everyone what is happening. They are sending a mixed message; spending fortunes and then telling fans they can’t do this. Owners take home 57% of the revenue. This number used to be closer to 50/50. The players want a bigger slice. And I don’t blame them.

Here’s another thing: top players will always earn. A fair question is, which players are hurt by the system? I have two answers to that, and smarter people than me could list more. But here they are:

• Young guys, who are stuck with a team through three years of minimum contracts and three years of binding arbitration. The new agreement needs to end service time manipulation which is a form of cost control where teams hold budding stars in the minor leagues to allow teams to keep that sixth year of ownership. There has been some talk of pay for performance contracts for players in this tier. I am intrigued by that, but can the two sides pull this off? I am not positive they can.
• Middle career free agents. Ross Stripling spoke about this fact last year.  A late bloomer and arriver to MLB at the age of 26, he doesn’t become a free agent until 2023, when he will be 33.  He’s a third-year arbitration eligible player this year.  And chances are good that when he does become a free agent, Stripling will not be able to get a multiyear offer, multimillion dollar deal.  He’s not going to be able to make the kind of money he could make if he were allowed to be a free agent sooner. The current system does not allow him to be able to make wealth. There is no other system like this in any sport or business. It’s archaic and outrageous. And it needs to change.  Let’s see pay for performance contracts for these players.

There has been much debate about a salary floor and/or a salary cap.  Any new agreement needs to address the incredible spending discrepancies. For example, Max Scherzer will earn $43 million this year to pitch every fifth day for the Mets.  As currently constructed, he will make more than the roster for the Pittsburgh Pirates ($34 million currently), Baltimore Orioles ($29.5 million) or the Cleveland Guardians ($29 million).  Obviously, that can and will change.  On the other end, we have the New York Mets ($235.6 million), the Los Angeles Dodgers ($213.9 million) and the New York Yankees ($211.2 million) at the high end of the spectrum. This cannot stand. While the luxury tax is essentially a salary cap, the teams listed here do not seem to care much for the soft cap. Institute a hard salary cap and a salary floor. Some comments I have read suggested a $100 million floor.

As a fan, my reaction is that the lack of labor peace is killing the game for kids. My dad, who is in his seventies and a fan of the game since his childhood, said this the other day: “I don’t recognize the game anymore.” It pains me to know that my son Jack, aged 11, may not be able to watch games this coming year if there isn’t a real solution in the coming months. Just as he is growing his love for the game, too. It gives me a pit in my stomach. 

This makes no mention of the rule changes to the actual game that both sides have paid lip service to in recent years. The universal DH would appear to be coming to the NL. Pitchers hit a “robust” .110 in 2021.  It’s time to stop pitchers from hitting. Enough is enough.

Seven inning doubleheaders appear to be done, as well as the runner starting on second base in extra innings. The rule mandating that relief pitchers face a three-batter minimum should also fall by the wayside. 

Big questions remain: what ball will we see in 2022?  We had the sticky tack situation and “solution” in 2021.  Will the league give the players a new ball that can be gripped with real seams while not being a Superball flying out of the ballpark?

An expanded postseason is coming as well, but what will that look like? The owners and management want an expanded postseason to 14 teams in an attempt to generate more revenue through ticket sales, concessions and selling more TV rights. Players are said to be lukewarm on the idea. Either way, the game needs to become more competitive to keep teams from tanking. This year we saw eleven teams win 90 or more games, while seven lost more than 90. There is a lack of balance here that needs addressing.

So, what’s the point of these 1200 words so far? It’s just heartbreaking and I am venting. I know we hear the whole “billionaires and millionaires splitting up millions” argument all the time. What bothers me the most is that neither side seems willing to compromise for the good of the game. What about the fans?  What about the kids? What is best for baseball moving forward, not just pocketbooks?  It’s always for their own good, not for the love of the game. That both frightens and frustrates me. Does anyone in MLB care about the legacy they leave behind them?

Baseball is the most perfect game in the world. Many have tried to ruin it and have been unsuccessful. But I am truly concerned that baseball will not recover from another lockout and/or strike coming. Can the game survive more strife? Long story short, it’s going to be a long winter and I doubt we see much movement towards a solution anytime soon. And with the bevy of issues surrounding these negotiations, which will likely continue to be acrimonious, I doubt we will see every issue get resolved this time either.