Category: Labor

Notes: NPB free agency, NWSL’s new CBA, NBA’s second apron issues

Japan’s baseball players are looking to make a major change, the National Women’s Soccer League already has, and concerns about what the NBA’s new salary cap rules are doing to player movement.

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According to Evan Drellich at The Athletic, Nippon Professional Baseball players are preparing to fight for a major overhaul of the system used to keep them in place, and in Japan, for as long as it does. They plan to combat the reserve system “on antitrust grounds,” per Drellich, which would mean significant changes to not just movement within the NPB, but for leaving Japan for a league such as Major League Baseball, as well.

Players in Japan have two forms of free agency: domestic and international. Domestic free agency, the freedom to switch to another NPB team, is achieved after seven or eight years in the league, depending on whether the player was drafted out of college or high school.

But to leave as a free agent for a foreign league like MLB, the wait is nine years. Players can depart sooner, but only if their team posts them for bidding. Instead, NPB players want what’s in place in MLB: free agency after a blanket six years, regardless of entry or destination.

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MLB’s rumored innings minimum is the league showing its hand

Whether the idea is a good one or not is beside the point here: just recognize that this is all a warm-up for CBA talks.

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For the last month or so, there have been leaks and instances of Rob Manfred speaking at press conferences that give you an idea of what’s being discussed in MLB’s offices. Which is always notable to some degree, but at this point, this far into the current collective bargaining agreement, it’s worth maybe noting all of it a little bit more than it would have been a year or two back.

The current CBA kicked off in 2022, so it will end after the 2026 season, which means we’re less than two years away from the serious ramp up that leads to the actual end of things. Remember, the 2021 deal expired in the offseason without a new deal in place, and MLB imposed a lockout: that could always occur again, if the league thinks the strategy of purposefully waiting out the players worked for them, or, helped expose rifts within the ranks of the players that the league would like additional chances to exploit.

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Notes: Scheduling jewel events, trading draft picks

All-Star Game week means All-Star Game week press conferences to pick apart.

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MLB’s All-Star week means it’s time for the Home Run Derby and a glorified exhibition game, but more importantly for our purposes, it’s also a time of press conferences. MLB commissioner Rob Manfred fields all kinds of questions related to the health of the game, and he even manages to answer some of them without being visibly annoyed about it, too.

One question was related to the Rangers receiving the 2024 All-Star Game, despite the fact that they don’t have a Pride Night during the season. Which is a thing that’s weird in a vacuum, but when you add in the context that they’re the only MLB team that doesn’t hold a Pride Night event, well. It sticks out, you know?

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The NBA’s ‘second apron’ seems bad, to me

A new threshold of punishment for spending has arrived in the NBA, and it’s not great.

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It’s not that Major League Baseball’s rules regarding the luxury tax and penalties are great. Let’s just get that out of the way now. The luxury tax has effectively been a salary cap for the league, albeit a soft and unofficial one, and new restrictions like the “Cohen tax” meant to discourage the wealthiest teams from truly and continuously flexing their financial muscle already makes that much more apparent. When teams like the Yankees can lie about their available resources and you can also kind of squint and get why they’d want to lie, that’s a problem.

All of that sounds pretty good in comparison to what the NBA has going for it starting with this upcoming season, however. A “second apron” has been introduced that makes the NBA’s actual soft salary cap more like a hard one. In short, you can basically spend and spend to retain players already on your roster, within the existing rules of what max contracts look like in that capped system, but if you’re over this second apron — it’s a threshold, just like with MLB’s system — and need to acquire more players. Well. You basically can’t. Per The Ringer’s explanation:

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Notes: Record stadium subsidy, John Henry speaks, gambling threats

The Rays are close to getting an admitted horrible deal for St. Petersburg, John Henry reminded people why he doesn’t give interviews anymore, and players are being threatened by gambling addicts.

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Usually the story told to cities and the public about stadium subsidies is that the new sports venue will be great for the local economy, it’ll pay for itself over time, etc. etc. So it’s kind of perversely funny that it’s already known that St. Petersburg’s nearly approved deal for a new Rays stadium will provide no revenue return to the city. City council member Richie Floyd, who is against the deal, has already said as much publicly: it didn’t even take some digging into the proposed deal from journalists to uncover that key piece of information.

What makes it even worse is that this is a $1.6 billion stadium subsidy, per Neil deMause’s calculations last month: the current record is Las Vegas’ Allegiant Stadium, at $750 million, which means St. Pete is more than doubling that rate. Completely absurd, but just five of their eight city councilors are needed to approve the deal, anyway, and they’ve supposedly got the numbers for the July 11 final vote.

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Notes: Tax loophole, MLB realignment, Oakland sells Coliseum, NCAA settlement

More on the tax loophole, a couple of thoughts on realignment, Oakland’s stadium situation gets additional wrinkles, and the NCAA is primed for a major change.

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Lots to get through today, so let’s get to it.

I went in deeper on the billionaire sports owner tax loophole news for Baseball Prospectus earlier in the week, getting into the origins of the loophole, what it is, why it’s a problem, and why we should hope the IRS decided to remove or rewrite it. The shorter version of it is that it would keep, say, a team that costs $2 billion from pretending 80 percent of the team’s valuation is going to lose value instead of gaining it like what happens with sports franchises simply for existing, allowing them to avoid $650 million in taxes over the next 15 years that they really should have paid. The longer version, well, I wrote that for BP, and while you need a subscription for that, at the least, you could always read the ProPublica reporting from three years ago on the subject.

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Fanatics claims it owns your kids’ likeness rights, forever

Fanatics has their latest cost-cutting scheme, and it’s trying to get perpetual likeness rights from children and potential future minor leaguers years before they go pro.

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Thanks to some excellent reporting from Britt Ghiroli at The Athletic, we now know what the latest chapter in the “everything Fanatics touches is terrible in some way” saga is. Fanatics is partnering together with Perfect Game, the “world’s largest baseball scouting service” which serves as both a showcase for amateur players and a high-level competitive environment for amateur baseball, in order to create memorabilia for these kids. Sounds innocent enough, right? Of course there’s another layer to all of this.

Perfect Game already had kids giving up the rights to their likenesses, as agents have been warning parents for a couple of years now about the practice, but, as Scott Boras told Ghiroli, “They have now gotten into profit-taking on this.” Amateurs can’t have agents, but agents can advise them, and not signing is one thing they’re being advised about now.

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On the salaries of MLB’s ‘disposable pitchers’

A day in the majors isn’t worth what happens to the salary of this new class of churned-through pitcher.

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Last week, I shared a Baseball Prospectus story written by Jarrett Seidler and Rob Mains on the rise of the “disposable pitcher.” A trend has emerged, with teams calling up a pitcher — a not-really-a-prospect kind of pitcher — on the 40-man roster up from the minors for a very temporary stay in the majors, and then designating them for assignment after they’re done with them rather than optioning them back to the minors. This allows for them to, effectively, stream a 40-man roster spot for additional call-ups like this down the road, while also allowing them to avoid exposing any genuine prospects to the majors or the need to be optioned before they feel like those players are ready for the show.

As I wrote last Friday:

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Notes: Manfred speaks, the disposable pitcher, Diamond Holdings

Looks at the week that was.

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Forgive me for being a little behind here on the coverage dates, but my phone was undergoing a slow and then rapid death, which cuts into the whole keeping up with the news thing. So now, new and working phone in hand, we can hit some notes from around MLB, starting with the thing Rob Manfred recently opened his mouth about.

On May 6, Manfred spoke to (or spoke “at,” as Neil deMause put it) a gathering of editors at an Associated Press conference, with an emphasis on extolling the virtues of publicly financed stadium projects. It is incredibly Manfred for its… style. You know the one. That thing where he exaggerates and makes wild, indefensible claims without any proof to back them up, and would definitely get angry at a reporter or fans or sitting Congressperson for calling him out on it and asking for more details.

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Notes: Other teams unhappy with A’s, gambling, Scott Boras axed

Catching up on a week of news that wouldn’t stop.

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Last week, Buster Olney tweeted out something that made the whole internet groan. Not at Olney — not this time — but at pretty much all of MLB. You can probably figure out why just from reading what was said:

Within other organizations, there is a lot of disgust with how the A’s have handled the ballpark situation — especially when there’s no actual ballpark plan settled in Las Vegas. And there is an assumption the A’s will tank in the next few years, because their revenue stream will be down to a trickle. “This makes us all look bad,” said one person.

This was met with a chorus of “why did they approve the A’s move, then?!” which, understandable. A few things I’ve been thinking about, though, that should get a mention. For one, Olney doesn’t clarify whether this is from an owner, or an executive who happens to work for one, who had nothing to do with the move being allowed. It would be helpful if we knew: my guess is that it’s an executive who knows how bad of a look this is, and not one of the owners, who by and large are too removed from humanity to ever consider how something will make them “look” to people at large.

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