As new Met and Union Representative Max Scherzer left the negotiating session between Major League Baseball and the Major League Baseball Players’ Association in Jupiter, Florida on Wednesday, he was asked if there was a deal. As he got in his car, Scherzer said, “no deal”. That’s where we are, with five days left until the February 28 deadline for an agreement that will allow the season to start on time.
The two sides met together and separately for five hours on Wednesday, and according to reports, little to no progress was made. MLB made a proposal on one topic, the minimum salary. This, along with the bonus pool, is considered one of the three core economic issues (collectively referred to as pre-arbitration compensation). According to Bob Nightingale of The USA Today, here are the details of MLB’s proposal:
MLB pointed out in its proposal that the minimum salary increase from $570,500 to $640,000 (a $69,500 increase) is larger than the entire total of increases in the last CBA ($63,000).
The MLBPA points out inflation, and it's still the lowest minimum salary of the 4 major sports. https://t.co/xgzgjKE8Tg— Bob Nightengale (@BNightengale) February 23, 2022
In the one area where a new offer was put on the table, the sides remain apart. There is no evidence that the other two core economic issues were broached today, those being Revenue Sharing and the Competitive Balance Tax. Essentially, the five hours the players and owners spent together seem to have been fruitless, and the days are dwindling to a precious few before the regular season is impacted.
According to Evan Drellich of The Athletic, the owners have doubled down on the impact of not having a deal in place by February 28.
A Major League Baseball spokesperson said tonight that if a deal is not in place by Feb. 28, regular season games will be canceled. “A deadline is a deadline,” the spokesperson said. Player pay would not be recouped, nor would those games be rescheduled, the spokesperson said.
— Evan Drellich (@EvanDrellich) February 23, 2022
This could be posturing to try to drive the players to make more concessions, or it could represent the stance the owners are taking. If it is the latter, canceling games would be, as Rob Manfred has said, “devastating for our industry.” We have to hope that it does not come to that, but with five days to go, that possibility is very real and becoming more likely every day.
Drellich also posted out that the sides are expected to meet tomorrow, for the fourth day in a row. At some point, the speed of the negotiations has to pick up dramatically, as MLB and the MLBPA have traded proposals with insignificant movement, and that will not get the job done if the goal is the preserve March 31 as Opening Day.
Looking ahead, there are five deals to come to a new Collective Bargaining Agreement. Deadlines can help instill a sense of urgency, and while the February 28 deadline has already been established, the statement above amplifies it. That can be a good thing.
However, there is work to do on minimum salary, and the bonus pool (the MLBPA wants 80% of “Super Two” players eligible, MLB is stuck on 22% of players with between two and three years of service being eligible).
Further, the players and owners remain apart on revenue sharing (currently 48% of local revenues are shared, the players want this percentage reduced), and they are far apart on the Competitive Balance Tax. The CBT is going to be the biggest challenge. The owners have offered a year one threshold of $214 million, the players have countered with $245 million. The tax rates are also in dispute, with the owners wanting a significant rise, and the players wanting no increase in the tax rates from those in the current CBA.
There are “minor” issues to resolve as well, such as the number of teams in a draft lottery. However, the three core economic issues will determine if Opening Day happens as currently planned.
The clock is ticking, the rhetoric is beginning, the sides are talking, but as Scherzer said, we have no deal. We also do not have a lot of time to get one in place.
The next five days will be interesting, but not in the way we want them to be as fans. Manfred says you’re one breakthrough away from a deal. Let’s get that breakthrough going, and quickly.
