The Journal Gazette
 
 
Friday, May 29, 2020 1:00 am

Agent to MLB players: Refuse cuts

Sees no reason to alter current arrangement

RONALD BLUM | Associated Press

NEW YORK – Agent Scott Boras recommends his clients refuse Major League Baseball's attempt to cut salaries during negotiations with the players' association, claiming team financial issues caused by the coronavirus pandemic have their origin in management debt financing.

In an email obtained by The Associated Press, Boras wrote that players should not alter terms of the March 26 agreement between MLB and the union that called for players to reduce their salaries to a prorated rate based on a shortened season. MLB on Tuesday proposed a series of tiered reductions that would cause top stars to receive the biggest cuts.

“Remember, games cannot be played without you,” Boras wrote. “Players should not agree to further pay cuts to bail out the owners. Let owners take some of their record revenues and profits from the past several years and pay you the prorated salaries you agreed to accept or let them borrow against the asset values they created from the use of those profits players generated.”

Boras is baseball's best-known agent and represented 71 players on active rosters and injured lists as of Aug. 31, the most among player representative firms. His company negotiated more than $1.2 billion in contracts during the offseason.

Salaries were set to range from $563,500 for players at the major league minimum to $36 million for Mike Trout and Gerrit Cole, the latter a Boras client. Under the March agreement, the range would be cut to roughly $285,000 to $18 million for the 82-game regular season MLB has proposed. Under the economic proposal made by MLB this week, the range would be reduced to about $262,000 to $8 million, including shares of a bonus all players would receive if the postseason is played.

“Owners are asking for more salary cuts to bail them out of the investment decisions they have made,” Boras said. “If this was just about baseball, playing games would give the owners enough money to pay the players their full prorated salaries and run the baseball organization. The owners' current problem is a result of the money they borrowed when they purchased their franchises, renovated their stadiums or developed land around their ballparks. This type of financing is allowed and encouraged by MLB because it has resulted in significant franchise valuations.”

“Owners now want players to take additional pay cuts to help them pay these loans. They want a bailout,” he said. “They are not offering players a share of the stadiums, ballpark villages or the club itself, even though salary reductions would help owners pay for these valuable franchise assets. These billionaires want the money for free. No bank would do that. Banks demand loans be repaid with interest. Players should be entitled to the same respect.”

Commissioner Rob Manfred has said 40% of MLB's revenue is related to the gate. Teams told the union on May 12 that MLB would lose $640,000 for each game  played in empty ballparks without fans. MLB claimed that playing with prorated salaries in empty ballparks would cause a $4 billion loss and give major league players 89% of revenue.

Washington pitcher Max Scherzer, among three Boras clients on the union's eight-man executive subcommittee, issued a statement late Wednesday night saying “there's no need to engage with MLB in any further compensation reductions.”

Boras cited the purchase of the Chicago Cubs by the Ricketts family and the redevelopment of Wrigley Field. Debt financing was key to both, he said.

“Throughout this process, they will be able to claim that they never had any profits because those profits went to pay off their loans,” he wrote. “However, the end result is that the Ricketts will own improved assets that significantly increases the value of the Cubs – value that is not shared with the players.

Stipends extended for some in minors

At least nine major league franchises have informed minor leaguers they will continue to provide allowances after the May 31 expiration of Major League Baseball's policy guarantying those players $400 per week. 

The San Diego Padres and Seattle Mariners are promising payments through August, and the Los Angeles Dodgers, New York Mets, Chicago White Sox, Tampa Bay Rays, Texas Rangers and Baltimore Orioles have pledged to do so through at least June. The White Sox are even providing those stipends to 25 minor league players recently released.

The Philadelphia Phillies also plan to continue allowances through June, but likely at a reduction from the $400 per week rate.

Oakland said Tuesday it will suspend pay for all minor leaguers at the end of the month. The Athletics are the only team to announce an end to the allowances.  


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