MLB pitched salary cuts

by | May 27, 2020

Yesterday, Major League Baseball pitched a new coronavirus plan to start its delayed season this summer.

Under the MLB’s plan, games would be played in home stadiums with no fans or partially filled parks that follow social distancing guidelines, and team schedules would be changed to eliminate long-distance travel.

The plan also calls for salary cuts. The highest-paid players could lose about 80% of their salaries, while players making the least amount could keep up to 90% of their pay. Players would retain their salary via a tier system.

  • In short, it’s a revenue-sharing plan: The more a player is scheduled to earn for the 2020 season, the less he retains under the plan.

The salary cut is necessary because many teams will lose a significant portion of their income if the games are played without fans. Tom Ricketts, chairman, and co-owner of the Chicago Cubs said that the MLB will lose $4 billion if games are played without fans. “In the best-case scenario, we’re looking at recovering maybe 20 percent of our total income. So, that is where the rub is and that is where the discussion will go with the players over the next few weeks,” he said.

The revenue-sharing plan is already receiving push back by the Major League Baseball Players Association. The MLB’s first economic proposal is only the start of what promises to be a long negotiation period to resume play suspend by the Covid-19 pandemic.

They’ll be touching base again soon.

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