Cleveland Sports Forum

Sources: MLB proposes salary minimum funded by new tax on teams spending $180 million


By Evan Drellich and Ken Rosenthal Aug 18, 2021 338

In a face-to-face collective bargaining meeting in Denver on Monday, Major League Baseball made its first proposal covering core economics to the Players Association. The plan included a new tax on team spending, one that would both effectively lower the first luxury-tax threshold in the sport to $180 million, and charge teams who exceed that first mark a higher percentage than they pay today. One trade-off, people briefed on the league’s proposal said, would be a salary minimum of $100 million in the sport.

Money collected from teams paying tax would fund certain club payrolls to the minimum, but details about the mechanism are unclear, including what penalties teams might incur if they do not reach $100 million, or what year the minimum would take effect.

The current tax system includes three spending tiers, the first of which is $210 million. Today, a team that goes over that amount pays a tax of at least 20 percent. In the new system proposed by MLB, the three tiers would still exist, and the new tax would be introduced below them — making for what would function as a four-tier system. Taxation would begin at 25 percent for the teams above $180 million, and the rates would climb from there.

MLB and the MLBPA declined comment. Per Cot’s Contracts, seven teams began 2021 with payrolls projected to be under $100 million, as calculated for luxury tax purposes.

The proposal included many other components which are are not currently known, leaving an incomplete picture. But player reaction to the luxury-tax element was not expected to be positive. Even in the absence of additional details of the proposal, the luxury tax is no small matter, and the Players Association almost certainly wants to see luxury-tax thresholds raised, not lowered, to incentivize spending. Players are already leery that the teams treat the first tier of the luxury-tax system as a salary cap, or a soft salary cap. The Players Association long has resisted a cap, and MLB remains the only major sports league in North America without one.

The commissioner’s office might be marketing the deal as a way to force the bottom teams to spend, and help prevent tanking. But a team that wants to keep its payroll down could still give an above-market deal to a player just to satisfy the minimum, without meaningfully improving the team.

In some areas that MLB proposed changes, the league also offered an alternative to the union to leave the status quo in place, including with the luxury tax. But the players have publicly made clear they’re unhappy with the present deal. In the current collective bargaining agreement, which began in 2017 and runs through this season, the luxury tax — or competitive balance tax, as it is formally called — was not significantly raised from the prior deal. Some industry sources believe that it is crucial for players to negotiate higher thresholds this go-around.

Here’s what the first tier has looked like for the last 10 years, spanning the last two deals:

2012: $178 million
2013: $178 million
2014: $189 million
2015: $189 million
2016 $189 million
2017: $195 million
2018: $197 million
2019: $206 million
2020: $208 million
2021: $210 million

The league’s first economics proposal comes well after the union made its first, back in May, shortly after bargaining began in April. One person briefed on the union’s proposal said it included a mechanism to get more players to arbitration after fewer than three years of service time, a plan the owners likely would oppose. But there are many other components to that offer, as well, that are unknown.

The sides have been in regular discussion since bargaining began, making proposals on different facets of the game without going deeply into core economics. The league’s economics proposal was presented as a package deal. The MLBPA might like some components and not others, but the elements are not being offered independently of one another.

Monday was the first time MLB and the MLBPA have met face to face during this round of negotiations. Historically, collective bargaining meetings have been held in person, and in different major league cities. COVID-19 precautions relegated the bargaining this summer to video calls, until now.

The current CBA is set to expire on Dec. 1. If no deal is reached, the owners could institute a lockout, interrupting the offseason. But a lockout wouldn’t necessarily interfere with spring training or the regular season in 2022, if a deal can be reached quickly enough.

I guess it goes without saying that Cleveland would have to spend much more next season than they do now under that type of system.

Obviously that is the beginning negotiating point but:

1. Just the fact that MLB is willing to put a minimum out there is huge
2. The players' union has long wanted a minimum so they would be all over that


Lowering the maximum to $180 million will never ever fly but that can stay the same as this year and still the system would be a drastic improvement for teams like Cleveland.

Rosenthal: These Orioles show how badly MLB needs anti-tanking measures


By Ken Rosenthal Aug 23, 2021

In 1988, when the Orioles started the season 0-21, they actually were trying.

Tanking to the extreme did not exist then. A bad team was just a bad team. And the Orioles, despite the efforts of Roland Hemond, who had taken over as general manager in November, were a bad team.

Hemond made five trades between the day he was hired and the season opener, capped by a five-player stunner on March 21, near the end of spring training: outfielder Mike Young and a player to be named to the Phillies for third baseman Rick Schu and outfielders Jeff Stone and Keith Hughes.

The deal, intended to address multiple holes, instead accelerated the 1988 club’s demise. Schu, once the heir apparent to Mike Schmidt in Philadelphia, had difficulty throwing due to an injured elbow. And Stone became the symbol of the 0-21 team’s futility, starting the season 1-for-32 and losing a ball in the lights in left field to allow the go-ahead run to score in the ninth inning of loss No. 9, 4-3 to the Royals.

On April 27 in Minnesota, Stone dislocated his finger in an unsuccessful stolen-base attempt during loss No. 20. Asked if Stone would need to go on the injured (then disabled) list, the Orioles’ manager, the late Frank Robinson, blurted out one of the all-time memorable quotes.

“I don’t know,” Robinson said. “But I hope so.”

Robinson had taken over for Cal Ripken Sr. at 0-6, still the earliest managerial change in major-league history. Ornery for much of his Hall of Fame playing career and during two previous managerial stints, Robinson remained in surprisingly good humor throughout The Streak, mostly because it wasn’t his team.

At 0-18, Robinson went out to dinner in Minneapolis with the team’s three beat writers — Richard Justice, who covered the team for the Washington Post; Tim Kurkjian, who covered the team for the Baltimore Morning Sun; and me, the second-year beat writer for the Baltimore Evening Sun, and still quite green at 25.

During that dinner, Robinson revealed to us he had received a call of support from President Ronald Reagan.

“Frank,” Reagan said, “I know what you’re going through.”

“Mr. President, you have no idea what I’m going through,” Robinson replied.

Robinson, of course, was right. His team had two future Hall of Famers, first baseman Eddie Murray and shortstop Cal Ripken Jr.; a former MVP and Rookie of the Year, outfielder Fred Lynn; a four-time All-Star catcher, Terry Kennedy; and a number of other reasonably accomplished major leaguers, including former All-Star pitcher Mike Boddicker. Yet for more than three weeks, it couldn’t win a game, setting the record for the longest losing streak in American League history, and falling just two losses shy of the all-time record of 23 straight defeats, held by the 1961 Phillies.

The roster of the 2021 Orioles is not as good. By design, it is not as good. The current collective bargaining agreement, which expires on Dec. 1, incentivizes clubs to lose by rewarding them with higher draft positions and larger bonus pools for amateur players.

The Cubs in 2016 and Astros in ’17 won World Series after employing such a strategy. The Orioles are one of several clubs that since have attempted to follow a similar path. And on Sunday, their current losing streak extended to 18 games, the sixth longest in modern major-league history.

All but six of those losses were to opponents from the AL East, the only division in which four of the five teams are above .500. The Orioles, whose 38-85 record is the worst in the majors, are the exception.

“It sucks, man,” one Oriole said. “We’re totally overmatched with the schedule we play.”

Orioles fans pay major-league prices for their tickets and cable and satellite subscriptions. So do fans of the Tigers, who are headed for their fifth straight losing season; the Pirates, who have had one winning season since 2015; the Mariners, who have not reached the postseason since 2001; and the Marlins, whose only non-losing season since 2009 came during last year’s 60-game campaign.

The sport is cyclical. Teams, especially those with lower revenues, occasionally must rebuild. From 2012 to ’16, the Orioles won more regular-season games than any team in the American League. They were bound to regress. But even Major League Baseball is now implicitly acknowledging that some teams go too far in what Tony Clark, the head of the Players Association, once called “the race to the bottom.”

The league’s first proposal to the union covering core economics introduced a new concept for MLB, a payroll minimum for each team. The minimum, $100 million per club, would be funded by a new tax that would both effectively lower the first luxury-tax threshold in the sport to $180 million and charge teams who exceed that first mark a higher percentage than they pay today.

The proposal included many other components that are are not currently known, leaving an incomplete picture, and the players’ union is certain to oppose a minimum that is tied to a lowering of the luxury-tax threshold, or which gives the owners the opening to ask for a salary cap. But a soft minimum could be inserted into the system, similar to the threshold at the upper end. A minimum of that nature could be an important step toward restoring the sport’s competitive integrity, particularly if combined with other anti-tanking measures.

The low-revenue A’s (six postseason appearances the past nine years) and Rays (six in the past 13, including two trips to the World Series) have proven that teams need not subject their fans to lengthy rebuilds. But each team operates under different circumstances. And the Orioles, without question, are dealing with unique challenges.

In a recent column, I detailed the disadvantages Mike Elias faced upon taking over as Orioles general manager in November 2018. A major-league roster that had been stripped practically bare in a series of as-yet unsuccessful trades by his predecessor, Dan Duquette. A need to bolster the team’s analytics and build an international department almost from scratch. And minimal support from ownership, which has provided a bottom-four Opening Day payroll in each of Elias’ first three seasons.

Elias, as I wrote, could be doing a better job of finding inexpensive talent on the margins, but it’s not as if he was ever going to build a contender in rapid order. The Orioles, pointing to their burgeoning young talent in the minors, say they are on track. Baseball America recently ranked their farm system No. 2 in the majors, the highest level the Orioles have achieved in the 38 years of the publication’s organization talent rankings. But even such breakthroughs come with no guarantees.

As The Athletic’s Dan Connolly pointed out last week, a lack of organizational pitching depth might prevent the Orioles from enjoying a resurgence anytime soon. Meanwhile, the major-league club is on pace to lose 112 games — this, after losing 115 in 2018 and 108 in ’19, baseball’s last two full seasons.

Some Orioles fans, trying to stay optimistic, say they are content to wait for the team’s turnaround. Some fans of other rebuilding clubs in baseball and throughout professional sports cling to a similar “trust the process” mindset. Some of those teams will succeed. Others will not. But owners perpetuate their rebuilding myths, getting away with lower payrolls and the losing that comes with them, knowing many fans will raise nary a whimper, wanting to see only the best in their favorite teams.

Whenever a fellow baseball writer starts complaining about covering a long losing streak, I think back to 1988 and say, “talk to me when it gets to 18.” It’s difficult for even a horribly constructed team to lose that many games in a row. The current Orioles have done it with a run differential of negative-102. The ’88 team actually was more competitive during its 0-21 start, with a run differential of negative-85 despite playing three more games.

Not that the 1988 Orioles were anything close to good. Opening Day was a 12-0 loss to the Brewers in which the Baltimore pitchers allowed 16 hits, threw two wild pitches and hit two batsmen. One Brewers run came on a steal of home, another on a runner scoring from second on an infield hit. The Orioles added two errors for good measure.

“We’ll bounce back,” Hemond, the new GM, said after the game. “Every team has games like this.”

Those Orioles had 21.

More than 33 years later, I still remember moments from the streak vividly. A 1-0 loss to the Indians in 11 innings for loss No. 11. A nine-run first inning by the Royals in loss No. 16. Reporters from all over North America, as well as Japan, traveling to follow the Orioles, back in the days before the internet, when newspapers reigned supreme.

The media frenzy peaked when the Orioles arrived in Minnesota at 0-18. Bill Ripken, now my colleague at MLB Network, was on the cover of Sports Illustrated that week, sitting on the bench, holding a bat against his forehead, his eyes closed.

“0-18, the agony of the Orioles,” the cover said.

The first night at the Metrodome, losing pitcher Mike Morgan spoke only to the three beat writers, refusing to acknowledge the national reporters. Usually it’s the reverse — familiarity between local reporters and the home team can breed contempt — but the beat writers had “been there,” so for once we were the good guys.

The second night, left-handed reliever Bill Scherrer, in only his second day with the club, gave up a home run to Kent Hrbek that might still be orbiting the earth if the Metrodome had not had a roof. Scherrer, now a scout for the White Sox, was more accommodating to the media throng than Morgan had been, saying, “I threw him a cookie,” over and over again.

The Orioles lost again to the Twins the next day, then headed to Chicago, where Ripken and Murray hit home runs to finally bring the streak to an end with a 9-0 victory at the old Comiskey Park (Mark Williamson earned the win, Dave Schmidt the save). Even that night, the Orioles could not fully celebrate: Bill Ripken had to be taken to the hospital after getting hit in the head by a pitch. And of course, the team was 1-21, with five months to play. It would finish 54-107.

The streak, at least, produced some local color, perhaps, in part, because it came at the start of the season. Fans in Baltimore drove with their lights on during the day to show support for the Orioles. About halfway to 0-21, a local disc jockey, Bob Rivers, said he would remain on the air until the team won a game. He took naps only during some recorded concert programs and a six-hour jazz program. It took nearly 11 days for the Orioles to set him free.

The Orioles returned home from their four-city, 12-game trip with a 1-23 record. A crowd of 50,402 filled Memorial Stadium on “Fantastic Fans Night,” and the occasion proved historic in more ways than one. That night, Gov. William Donald Schaefer announced the team had agreed to a 15-year lease for a new ballpark at Camden Yards. The ballpark, which would open four years later, would become a landmark, a model throughout the sport.

With the Orioles’ current losing streak, there is no such charm in Charm City, just one numbing defeat after another. In recent weeks, rival executives have taken to describing the team as an embarrassment, an example of tanking gone haywire. The point is difficult to argue, but maybe this streak, too, will conclude with its own transformational moment for the sport. Maybe it will show, once and for all, that the game’s incentives need to change, and that losing can be an acceptable strategy no more.

(Photo: Douglas P. DeFelice / Getty Images)

Lindor returned for the Mets 0-4 225 696 OPS

Carrasco's last start over the weekend, 3 runs in 5 innings, brought his ERA down to 8.82

still no Eddie Rosario for the Braves; but then again all they gave up was Sandoval; but they are paying at least most of Eddie's salary

Luplow on the Rays IL too after a 2-20 debut with Tampa

Maton is 5.53 ERA for Houston but that;s inflated by one stinker generally doing OK in middle relief

Cesar Hernandez for the White Sox 207/300/276

DJ Johnson pitched 2 2/3 scoreless innings for the Rays and then out with a season ending injury

And finally C Yainer Diaz who went to Houston with 4 homers in his first 15 AB in High A after only hitting 222 in his weeks in Low A

Kluber (shoulder) tossed three-plus innings for Triple-A Scranton/Wilkes-Barre on Tuesday, allowing three runs on two hits and two walks while striking out four.

It wasn't a dominant performance by any means, but Kluber showed improvement after allowing five runs across 1.1 innings in his first rehab appearance last week. He also upped his pitch count from 45 to 56 on Tuesday while reportedly looking good with his curveball, per Brendan Kuty of The Newark Star-Ledger. The veteran right-hander is likely to make at least one more minor-league rehab start and could return to the Yankees by the end of the month if that goes well.

Nationals sent RHP Jefry Rodriguez outright to Triple-A Rochester.

Rodriguez is now officially off the 40-man roster but will remain part of the Nationals organization. The 28-year-old holds a career 5.34 ERA in 123 major league innings.

Had seemed promising when we got hm from the Nationals. Has he pitched in the majors since we let him go? Injuries set him back

Braves activated OF Eddie Rosario from the 10-day injured list.

Rosario has recovered from his abdominal strain and is ready for his Braves debut after the team acquired him from the Indians at the trade deadline. It's possible he will be fourth in the outfield pecking order behind Joc Pederson, Adam Duvall and Jorge Soler.

Jordan Luplow (ankle) went 4-for-5 with a home run in his first rehab game with the Rays' Florida Complex League affiliate.

Luplow is working his way back from an ankle injury that's nagged at him this season. He should be back soon.

Glad to see them playing again.

Carlos Carrasco has a very solid 7 inning 2 run game for the Mets last night.

Cesar Hernandez hit his 21st homer for the WhiteSox.

The best by far of the bunch, Lindor is back with the Mets and got first hit last night, he's 1-11 this week.

Man could we be any happier for Cookie?

The poor guy gets thrown into the Lindor trade and gets hurt - not really doing anything at all until August. Finally this is his first good outing!!

Love that guy. He's not getting any younger so I just hope he can get back to where he was.

Blue Jays activated LHP Brad Hand from the bereavement list; designated him for assignment.

Yikes. Hand was acquired from the Nationals exactly one month ago for Riley Adams but is now off the 40-man roster in Toronto after yielding 10 runs -- seven earned -- on 13 hits and three walks over just 8 2/3 innings of work.

Yikes!

civ - Brad Hand had just come back to the Jays after dealing with "personal issues" so I have to wonder what's going on there.