As the owner-initiated lockout approaches its 100th day, representatives from Major League Baseball and the MLB Players Association held talks Tuesday morning in New York. The parties met later that day, according to the Associated Press. Evan Drellich of The Athletic. It is not clear if any more talks are scheduled for Tuesday evening.
Commissioner Rob Manfred could announce the cancellation of more regular season games if no deal is reached on Tuesday, although there is no clear “deadline” for an agreement. Last week, Manfred canceled the first two series of the regular season.
Tuesday is MLB’s third “deadline” in a 162-game season. The league says if a deal is reached on Tuesday (or Wednesday, if enough progress is made on Tuesday), players can start spring training by Friday, and a 162-game season can be played with players on full pay and service time. Games that have already been canceled will be made up for with doubleheaders, weekends, etc.
MLB previously set a February 28 deadline for a 162-game season, then pushed it back to March 1 after a long negotiation process that saw both sides take small steps toward a deal. Clearly, these timelines have no real teeth, given that there are still 162 games on the table as of Tuesday. MLB is setting deadlines in hopes of getting the MLBPA to accept the deal.
The union said it would seek full pay and hours no matter how many games were played in 2022 and threatened to delay the postseason extension without it. How many games are played, how many players are paid, and even the schedule itself is up for sale. Manfred and MLB cannot unilaterally cut fees for canceled games.
MLB and MLBPA met quietly on Monday (each side expressed interest in reducing the “media circus” that followed the talks), and gaps remain in the underlying economic proposals.
On Tuesday, the owner’s side seems to have moved a little.
Here are the latest known proposals:
Minimal salary | $570,500 | $700,000 with an increase of $10,000 each year | $725,000 with $20,000 increase in 2023 and 2024, CPI increase in 2025 and 2026 |
Competitive balance tax threshold | $210 million | $228 million in 2022 and up to $238 million in 2026. | $238 million in 2022 and up to $263 million in 2026. |
Pre-arbitrage bonus fund | N/A | $50 million no increase | $80 million with an increase of $5 million per year |
The competitive balance sheet tax appears to be the biggest stumbling block. Last week, MLB proposed to increase the amount from $220 million to $230 million, and on Monday increased it to $228 million, taking it up to $238 million. The $10 million increase over five years is worrisome for the union as it lags MLB’s average annual revenue growth (five percent per year since 2012).
MLB had not previously offered more than $30 million as a pre-arbitrage premium pool, so moving to $50 million (reported by Russell Dorsey of Bally Sports) is remarkable. This is also due to the players agreeing to playoffs with 14 teams. Previously, they allowed the playoffs to be expanded to 12 teams, but not to 14.
Four owners — Bob Castellini (Reds), Chris Ilich (Tigers), Ken Kendrick (Diamondbacks) and Arte Moreno (Angels) — voted against a $220 million competitive balance tax proposal last week. . To ratify the deal, 23 votes out of 30 owners are required. Andy Martino from SNY says there is confidence that the league has those votes on the $228 million offer.
The main goal of the union is to put more money in the pockets of the players at the beginning of their career. Approximately two-thirds of the pool of players last season were between 0 and 3 years old, which means they have yet to reach arbitration or hit the MLB low. A few weeks ago, the MLBPA rejected proposals for earlier arbitration and earlier free mediation.
Coincidentally, on Tuesday, Apple announced a new streaming partnership with MLB. Two games under the “Friday Night Baseball” double title will stream exclusively (meaning fans won’t be able to watch those games on cable or other streaming service) on Apple TV every week starting this year. Of course, the MLBPA took note of the Apple deal and increased revenue.
“Money isn’t infinite,” Yankees president Randy Levine said Monday. “Any notion that money is infinite, especially after COVID, is simply not true.”
There are also non-economic issues. MLB is looking to unilaterally make rule changes with 45 days’ notice. MLB currently has to wait a full year after submitting a rule change proposal. The league, among other things, wants to set pitching hours and ban shifts. The parties are also discussing the draft lottery.
While the 162-game season is still in discussion as of Tuesday, the calendar is working against MLB and the MLBPA, and a shortening of the season will soon become inevitable. The teams played 153–155 games after the 1972 strike, 103–111 games during the 1981 strike, and 144 games after the 1995 strike.
At 97 days, the owners’ lockout is the second longest work break in baseball history, surpassed only by the 1994-95 players’ strike (232 days). Here is the blocking timeline.