Thoughts on MLB’s economic reform committee

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Whispers turned to anonymous leaks, which became Dick Monfort and Rob Manfred publicly complaining/shaming, and then an “economic reform committee” was unveiled by MLB. All of this was predictable, and because of that, it’s not too difficulty to suss out what it all means.

MLB is using the recent issues of Diamond Sports Group — which runs the Bally regional sports networks that Sinclair purchased from FOX after Disney grabbed everything besides those RSNs and the fascist cable news network portion of the company in their quest to own every IP in existence — as an excuse for the existence of this economic reform committee, and I’m sure that’s true to a degree: the owners will all be in some uncharted waters soon, and rather than end up in a situation like Bud Selig arguing with George Steinbrenner about revenue-sharing for years, or any number of 1980s commissioners trying to explain how cable was good for the owners’ bank accounts, actually, Manfred and Co. are trying to get ahead of the discussions about this brave new world.

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Arbitration shouldn’t go anywhere

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The greatest evidence that exists in favor of arbitration is that Major League Baseball wants to do away with it. It’s not a perfect system, no, given the arbitrators themselves are inconsistent, and MLB spends an awful lot of time coaching up its teams on specific talking points so that they can defend their positions, but in aggregate, there is a reason that the Players Association is in favor of keeping an arbitration system in place, while the league would love very much to be done with it.

Even in an offseason like this one, where the players were trounced in arbitration itself, the system still allows for teams to negotiate with players — for players to ask for more than they could without the threat of an arbitration hearing in place — and end up with a higher salary than they would have with no such event looming in the distance. As I wrote back in 2019 for Deadspin:

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The A’s have been busy, but only relatively speaking

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The A’s keep on making moves this offseason, with the latest of them a trade of reliever-turning-starter A.J. Puk to the Marlins for sophomore outfielder JJ Bleday. It’s something of a challenge trade, since Puk converted to the bullpen in the minors and hasn’t made a start in the bigs, while Bleday’s rookie season didn’t approach his Triple-A production, but the thing I mostly want to note is that the A’s have been busy, but they haven’t exactly been putting in full effort. Again.

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A reminder the ‘Steve Cohen tax’ hasn’t really hit yet

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Shohei Ohtani won’t be a free agent until next winter, but he’s also literally Shohei Ohtani, so discussions about what his free agency will look like are already happening. A notable one occurred last week, when a “high-ranking exec” predicted to the New York Post’s Jon Heyman “a reckoning” when the current collective bargaining agreement expires to attempt to keep the spending of Mets’ owner Steve Cohen in check:

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Dick Monfort is good for a laugh, at least

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The owners of Major League Baseball’s 30 teams are quite the bunch, in the sense that the vast majority of them are capable of doing or saying something that will either raise my blood pressure or get me to start giggling at how much of a dingus they are. Rockies’ owner Dick Monfort could very well be king dingus in this group: a man who has won nothing ever, and yet is so publicly sure that the way he’s doing things is the right way. And to the point where he’s now openly criticizing the spending of fellow NL West club the Padres, as well as any of the Rockies’ fans who believe that the way San Diego is operating is the right way to go about building a successful team.

From Saturday’s Denver Post:

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John Henry lies about ticket prices, is booed

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It’s not exactly new information that there is no correlation between MLB ticket prices and player salaries. Baseball Prospectus ran an article on the subject in April of 2003, nearly 20 years ago now. Early 2003 is so long ago in analysis terms that it was two years before I made my own debut at Baseball Prospectus, and three years since I became a regular there. It’s so long ago that the author of that piece, Nate Silver, was years away from being a divisive figure. It’s been known for some time that ticket prices and salaries don’t align like that, is the point. Here’s Silver on the subject:

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MLB sets revenue record once again, despite exec fears from 2020

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Major League Baseball is back from the pandemic, and by that I mean MLB’s revenues are once again setting records. After a brief pandemic-related break in what had been 17 consecutive seasons of record revenues — first the pandemic-shortened 2020 campaign and then 2021’s lower than usual attendance due to the coronavirus pandemic still, you know, existing — the league pulled in at least $10.8 billion in 2022, according to Forbes’ Maury Brown. That’s ahead of the previous record, set in 2019, of $10.7 billion in revenue.

Brown mentions that, “the business of baseball rebounded out of the pandemic faster than a ball off the Green Monster at Fenway Park,” and I want to focus on that for a moment. The reason being that MLB executives anonymously whined about how long it was going to take them to be able to recover from having to pay players what they eventually ended up paying them during the shortened 2020 campaign. Let’s rewind for a moment, to May of 2020:

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Steve Cohen probably doesn’t care about a possible grievance

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Don’t confuse the headline for the idea that Carlos Correa, his agent Scott Boras, and the MLB Players Association shouldn’t bother filing a grievance against Mets’ owner Steve Cohen for publicly commenting on an unfinished free agent contract that ended up never being consummated. If they feel that the public, on-the-record comments — which are not supposed to exist until a deal is done, which is why you see general managers and owners playing coy all the time while we wait for press conference time to roll around — harmed Correa’s market in any way, they not only have a right to file a grievance, but a case they could win.

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The Red Sox learned their lesson too late with Rafael Devers’ extension

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My dad has worked in the trades since he was in high school, so he knows quite a bit about not just the day-to-day of such operations but also the bigger picture, zoomed out standards and trends, as well. When we needed to side our house a couple of years ago — the siding was basically unpainted at this point, it had been so long since it got a fresh coat, it had dried and weakened, and also a combination of woodpeckers and squirrels were making holes in it with the latter trying to make residence in my attic — I kind of balked at the price we got, which had been inflated by the worldwide pandemic, supply chain issues, etc. Until a conversation with my dad who knows things taught me this important fact about the resources needed for completing construction projects: today is the cheapest they’ll ever be, because tomorrow, the price is going to go up.

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No one is ‘circumventing’ the luxury tax threshold

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Thanks to a rumor about the Padres considering a 14-year, $400 million contract to then-free agent Aaron Judge, there have been some rumblings about how Major League Baseball would have reacted to such a deal. Jon Heyman reported at the New York Post that, “sources say they would not have been allowed, as MLB would have seen the additional years as only an attempt to lower their official payroll to lessen the tax.” That’s just one side of any conversation on this, though: MLB might have tried to get rid of it, and are within their rights to given that circumventing the threshold goes against the collective bargaining agreement, but what are the chances that the Players Association would have allowed them to do so, and what are the chances MLB would have successfully erased the deal when challenged on it?

My guess is “not good,” and Ken Rosenthal’s own reporting echoes that:

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