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Fangraphs: MLBPA Problem

weams

By weams
in Orioles Talk

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weams Hangout Grand Counsel

weams

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http://www.fangraphs.com/blogs/the-mlbpa-has-a-problem/

Perhaps first and foremost, MLB teams have simply gotten smarter and more efficient in recent years. Gone are the days when a substantial number of teams were willing to throw boatloads of cash at free agent players on the wrong side of 30. Today, teams are increasingly signing their cornerstone players to team-friendly extensions before they hit the free agent market, while at the same time relying to a greater extent on cheaper, cost-controlled players to replace the holes they do need to fill. As a result, although the cost of wins continues to climb, that price is rising more slowly than one might expect given the hundreds of millions of dollars in additional television revenue that have been flowing into the game in recent years.
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weams Hangout Grand Counsel

weams

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Unlike ticket sales ? which generally rise as a team improves on the field ? television revenue is fixed via long-term broadcasting agreements. So while franchises can increase their in-stadium profits to some degree by spending more on payroll ? thereby improving the quality of their team ? the same is generally not true for television revenue. As a result, teams have little incentive to spend any added broadcasting profits on payroll (because, in economic terms, the added television revenue has not adjusted the team?s marginal revenue product).

So even though MLB?s television revenues have increased substantially in recent years, relatively little of this extra money is flowing to the players. Instead, teams are largely pocketing these additional revenues as extra profits, raising the league?s overall revenue without a corresponding increase in player payroll. As a result, the new television money is actually lowering the players? share of overall league revenue on a percentage basis.

TV deals have killed the model.
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Can_of_corn Hangout Grand Counsel

Can_of_corn

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Fixed minimum.

Yes, theoretically.

Not going to happen. No way owners accept a floor without demanding a ceiling. The only way I can see it working out that way is if the instill a (low) floor and dramatically increase the penalties for going over the current soft cap.

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DrungoHazewood Hangout Grand Counsel

DrungoHazewood

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Yes, theoretically.

Not going to happen. No way owners accept a floor without demanding a ceiling. The only way I can see it working out that way is if the instill a (low) floor and dramatically increase the penalties for going over the current soft cap.

That could happen. I just see some contention among players seeing other sports with a lot higher percentage of revenue going to the players and baseball's shrinking annually. Of course the players still make a decent wage... And that percentage may shoot up to unsustainable levels if/when the cable bubble pops.

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weams Hangout Grand Counsel

weams

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I think MLB players need to become free agents quicker. The fact that teams control these guys until after their primes is a big problem.

Why is THAT a problem? Of course, it could be a all players in the Union are free agents every year. But they wouldn't like that either.

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weams Hangout Grand Counsel

weams

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I think MLB players need to become free agents quicker. The fact that teams control these guys until after their primes is a big problem.

I remember the girlfriend of one of our minor leaguers ranting on and on about how she and her man could not wait until he became a six year FA so that he could pick and choose his club and get paid and treated fairly. It didn't work out that way.

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