Market Reset

[TonySoprano]

Interesting article on mlbtraderumors.com

We have all heard the talk of new money infusing the game of baseball, and early free agent spending seems to reflect that. The numbers on the recent run of free agent signings sound high, but what do they tell us about overall spending levels? A quick look reveals that, indeed, spending seems destined to rise significantly this year.

[scOtt]

I think the spending already has caught DD a little off-guard. But it's COMPLETELY over PA's head... even if DD was to beg for more.

[Barnaby Graves]

I have no idea how the amatuer prices work, but this will screw the kids over if the slot recommendations aren't somehow tied to overall league spending. I don't know how that changes.

[scOtt]

I have no idea how the amatuer prices work, but this will screw the kids over if the slot recommendations aren't somehow tied to overall league spending. I don't know how that changes.

Interesting point! I'll bet there are no links between them (ML spending v. Draft slots) in the current CBA. Both sides probably never even thought of this. All.

[skanar]

I have no idea how the amatuer prices work, but this will screw the kids over if the slot recommendations aren't somehow tied to overall league spending. I don't know how that changes.

"Screw over" in a pretty loose sense - it's still hundred of thousands of dollars to play baseball.

But if your point was that the result of the owners/players union detente of the last 25 years was to create a much bigger disparity in pay between MLB and minor league players, you'd be 100% correct. After all, they're not members of the union.

Edit: this disparity was already huge before this year's jump in MLB spending. Now it's bigger.

[scOtt]

"Screw over" in a pretty loose sense - it's still hundred of thousands of dollars to play baseball.

But if your point was that the result of the owners/players union detente of the last 25 years was to create a much bigger disparity in pay between MLB and minor league players, you'd be 100% correct. After all, they're not members of the union.

Edit: this disparity was already huge before this year's jump in MLB spending. Now it's bigger.

Not for 99% of Minor Leaguers!

Most of them WISH they earned the bonuses of Gausman or Bundy!

[scOtt]

Not for 99% of Minor Leaguers!

Most of them WISH they earned the bonuses of Gausman or Bundy!

Or simply ML minimum.

[skanar]

Not for 99% of Minor Leaguers!

Most of them WISH they earned the bonuses of Gausman or Bundy!

True. But Barnaby's post was commenting on slot values, most of which are pretty good. The smallest slot amount, for a pick around #315, is $136,300. Every player drafted in rounds 1-6 this past year had a slot amt of at least $200k. If they're smart, they can spread that out over the 4-5 years they'll probably be in pro ball and have a reasonable income - taxes may be an issue, though.

AAA players actually make reasonable salaries by real-world standards, and their offseasons are free. Honestly, it see like it would be pretty panless: there are 9 more minor leagues with on the order of 100 teams playing full-season ball (so down through A, but not A-). 100 teams x 25 players = 2500 players. Paying them all a middle-class income (for a part-time, younger individual) of say $40,000/year, you're looking at a $100,000,000 outlay. The total payroll in all of baseball last year was over $3,000,000,000, so you could give all of the MiLB players that income (or scale it with age, time in league, level, whatever, as long as that's the average) by reducing every MLB player's salary by about 3%.

But the MLB players would reasonably object that the owners should pay some of that, not to mention a possible attitude of "I suffered as a minor leaguer, why shouldn't they?"

Obviously this is just back-of-the-envelope calculation, so I wouldn't take those numbers too literally - the order of magnitude is probably right. This may be worth real study at some point.

[scOtt]

True. But Barnaby's post was commenting on slot values, most of which are pretty good. The smallest slot amount, for a pick around #315, is $136,300. Every player drafted in rounds 1-6 this past year had a slot amt of at least $200k. If they're smart, they can spread that out over the 4-5 years they'll probably be in pro ball and have a reasonable income - taxes may be an issue, though.

AAA players actually make reasonable salaries by real-world standards, and their offseasons are free. Honestly, it see like it would be pretty panless: there are 9 more minor leagues with on the order of 100 teams playing full-season ball (so down through A, but not A-). 100 teams x 25 players = 2500 players. Paying them all a middle-class income (for a part-time, younger individual) of say $40,000/year, you're looking at a $100,000,000 outlay. The total payroll in all of baseball last year was over $3,000,000,000, so you could give all of the MiLB players that income (or scale it with age, time in league, level, whatever, as long as that's the average) by reducing every MLB player's salary by about 3%.

But the MLB players would reasonably object that the owners should pay some of that, not to mention a possible attitude of "I suffered as a minor leaguer, why shouldn't they?"

Obviously this is just back-of-the-envelope calculation, so I wouldn't take those numbers too literally - the order of magnitude is probably right. This may be worth real study at some point.

TY. I didn't realize some/many made that much.

[Migrant Redbird]

Minor-league baseball players still paid next to nothing, By Charlie Wilmoth @WilmothC on Jan 14 2013

... Basically, a lot of them -- the ones who don't get six- or seven-figure bonuses -- are currently working second jobs, because their salaries as baseball players are so paltry.

... Of course there are plenty of minor-leaguers who can live well, at least for a while, on their bonuses, but the new CBA (which was negotiated by major-league players who don't have to worry about minor-league salaries anymore) reduces the number of big bonuses for amateurs. You can be a top-ten-round pick and still get a bonus of just a few thousand bucks if you don't have leverage to negotiate a bigger one. And there will continue to be a vast underclass of former late-round picks and low-profile Latin signings who make practically nothing, enduring endless bus rides to small towns, eating horrible food, and scrambling to find work in the offseason.

Pay Structure of Minor League Baseball Players, Posted by jlee233391 on March 17, 2010 ?

The current salary system for the minor leagues is a follows:

? First contract season: $850/month maximum.

? Alien Salary Rates: Different for aliens on visas ? mandated by INS

? Triple-A ? First year: $2,150/month, after first year no less than $2,150/month

? Class AA ? First year: $1,500/month, after first year no less than $1,500/month

? Class A (full season) ? First year: $1,050/month, after first year no less than $1,050/month

? Class A (short-season) ? First year: $850/month, after first year no less than $850/month

? Dominican & Venezuelan Summer Leagues?no lower than $300/month

2012 CBA table

I continue to believe that all salaries should be paid from a common MLB compensation fund populated by a fixed percentage of each team's revenues. It would make sense to pay the minor league players from the same fund.

The minor leagues are what they are. No one is forcing minor league players to sign. They're provided lodging in basic training and on the road, plus meal money. Generic breakfast cereal is cheap and nutritious. Fan booster clubs assist them in finding affordable lodging and, in some cases, lodge them with local families. Getting to the majors is a long shot but, if they do, ML minimum is as much as many of their fans earn in a decade.