Big Dollar Contracts Are Not a Birthright



By Mike Silva ~ November 20th, 2009. Filed under: Business of Sports.

Let the free agent frenzy begin!

It’s going to be a long and cold winter for the Players Association. As unemployment numbers continue to rise across the nation I predict teams will look to trim payroll. After all dwindling consumer confidence has lead to less spending on non essential items. I think baseball tickets and paraphernalia falls in that category.

Last year was the first time in my memory where the free agent season extended all the way into spring training. This winter we may see the “mother of all non tenders” hit the market, more one year deals, and depressed contracts even for the big money players. Incoming President of the Players Association, Michael Weiner, has already started to talk about collusion. It wouldn’t be the first time in MLB history the owners were accused of the act. In the eighties there were three separate occasions where his union successful levied collusion charges against the owners. Although some players are requesting the new union head to look into the matter I believe we are about to see the union learn an extremely valuable lesson: big contract paydays are not a birthright.

I am the last person to defend the owners. This is a league that, in my opinion, is run so poorly they are lucky they have a product they can’t screw up. From on field rules to media relations baseball is always the last to the party when having a pulse on their business. The problem I have in this case is ownership has every right to be concerned about the next five years of revenue. Why should they behave as if MLB is not recession proof? If people in this country are being asked to work harder for less what makes Michael Weiner thinks his members are immune? Are they not employed under the same US economic system as your everyday white or blue collar worker? The reality is MLBPA wants a free market system, but doesn’t want the risk associated with free choice.

Let’s be honest how many players are in tune with what’s going on politically in this country? Wish I had the survey numbers on that because I would bet the ranch it’s very low. That’s why an economic tsunami is about to hit and many are going to be left unprepared. Remember, it’s not the guys like Matt Holliday who will be hurt the most, but rather the fringe reliever or bench player that will see his once guaranteed two million per year bench job dry up. The union is for the top five percent not the total body.

I predict we will see Weiner file a suit against MLB. Whether this leads to future unrest in collective bargaining remains to be seen. The last time these two sides went to the table was post 9-11 and they knew the public would not be sympathetic to millionaires fighting over billions of dollars. There may be even less sympathy this time. Instead of lobbying accusations Mr. Weiner might be better served in requiring his members to attend an economics class. Perhaps preparing for their financial future will be a better use of their time instead of fighting a losing battle of collusion claims.

Listen to my “Diamond Dollars” show where I discussed the recent economics of baseball with author Vince Genarro.

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1 Response to Big Dollar Contracts Are Not a Birthright

  1. John

    Well Mike it depends who you listen to whether MLB is facing the same economic crisis as the rest of the country.

    http://msn.foxsports.com/other/story/10392772/Boras-Manfred-war-of-words-an-unsettling-omen

    Boras is putting on the pressure and it certainly will be interesting to see how the FA signing period goes this year. Do teams spend more to ease suspicion of collusion? Or do they dig in their heels and face another collusion charge. A charge which was proven to be true every time in the past.

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