The MLB’s Collective Bargaining Approach: Short-Term Gain Versus Long-Term Pain?

The MLB’s Collective Bargaining Approach: Short-Term Gain Versus Long-Term Pain?

By Matthew Spolsky
Ford, Walker, Haggerty & Behar LLP

Major League Baseball (MLB) concluded its 2021 season on a high note with the Atlanta Braves taking down the widely hated Houston Astros. What happened next was something a lot of fans hoped would have been avoided.

In December 2021, the most recent collective bargaining agreement negotiated in 2016 between the MLB and the MLB Players Association (MLBPA) expired. This left the upcoming 2022 MLB season hanging in limbo. MLB Commissioner Rob Manfred issued a statement that resonated with many fans, as they too were “disappointed about the situation in which our game finds itself today,” but for different reasons.

Negotiations are at a Halt

The proposed terms of the new collective bargaining agreement fans have heard of since December have shown the MLB and MLBPA’s desire to reshape our national pastime. Manfred’s statement indicated that there was interest on one side or the other to make significant changes to the 2016 collective bargaining agreement. These proposed changes include establishing a minimum payroll for all clubs, allowing the implementation of an age-based free agency system, increasing compensation for young players, adopting the universal Designated Hitter, establishing a new draft lottery system, and increasing the Competitive Balance Tax threshold.

Since the Commissioner’s letter, fans have had limited amounts of information about the status of the pending negotiations. On Jan. 13, 2022, the MLBPA was said to not be receptive to the new proposals from the MLB and, as a result, the MLB did not expect spring training to begin on time. On Jan. 24, 2022, the MLBPA dropped two proposals which asked for an age-based free agency and the proposed revenue sharing ideas. The next day the MLBPA proposed a new minimum salary of $775,000, which would increase the minimum salary from $570,500.

Recently though, negotiations have reached a stall. On Feb. 3, 2022, fans were told the MLB was requesting the assistance of a federal mediator to help end the lockout so Spring Training could begin, and Opening Day could stay on calendar for March 31, 2022. The MLBPA has since rejected the idea of using a mediator to resolve the issues. There was some headway in negotiations with Commissioner Manfred announcing on February 10, 2022, the new universal Designated Hitter rule for both leagues. But on February 12, 2022, MLBPA left a meeting with the MLB feeling “unimpressed” with the tax changes, service time proposals, and a limit to option players back to the minor leagues. Both players and fans are now left to wonder when and if the 2022 MLB season will start, or if there will be a season at all. 

Player Development

Delaying or cancelling the MLB season due to the collective bargaining negotiations will have a variety of effects on the sport. One of these effects which will hurt teams with a lot of young talent, including the San Diego Padres, is player development. The last major lockout caused by stalled collective bargaining negotiations came in 1994-1995 MLB. This lockout lasted 232 days and cancelled the 1994 postseason. To cancel another year for a team with a lot of young talent will be detrimental for the long-term success of the younger players.

Fernando Tatis, for example, has been in the major leagues for three years now. In his first year he had a .317 batting average. He followed this up with a sophomore slump year, batting .277. This last year he had a resurgence and hit .282, which almost pushed the Padres into the 2021 postseason. Tatis has had three consistent years of play. With no years off, he was able to bounce back from his sophomore slump and show he is the star player the Padres need.

Jake Cronenworth is another young player whose performance could be impeded by a lockout year. In his first season with the Padres, he had a .285 batting average. Last year however, Cronenworth hit his sophomore slump year and hit .266 on the season. Cronenworth has the potential to be a star player, and he should be able to bounce back in the 2022 campaign with a batting average in the .275 to .285 range. Players like Cronenworth need this season to come back and continue to improve. The Padres missed clinching a wild card ticket to the postseason by only a few games. A well-developed young homegrown talent could be all that is needed to carry this team to the championship.

Conclusion

There will be a detrimental impact to player development across the league if the collective bargaining negotiations fail. Baseball players who don’t have the ability to get opportunities to play and practice generally fall behind and lose jobs to those who do get those opportunities. The Padres are on the cusp of being a playoff winning team and have the talent to get to the World Series. If the young talent cannot develop properly, then neither will the team.

While increasing the base salary will be a good thing for new players coming into the league, it won’t matter to the generation of players left behind with shortened careers because they did not have enough time to develop. Negotiating a fair agreement benefitting all players and owners can be achieved, but reaching a deal sooner rather than later is more important than winning every battle in these negotiations.

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