Background[ edit ] In response to a worsening financial situation in baseball, the owners of Major League Baseball teams collectively proposed a salary cap to their players. On January 18,the owners approved a new revenue-sharing plan keyed to a salary cap, which required the players' approval.
What are the details of the new agreement? There is a tax inwith no tax inand a union option to extend the plan to in return for a payment from the players and a reduction in playoff money. The tax threshold is raised to halfway between the fifth-highest and sixth-highest payrolls if that is higher; this means that the tax will apply to at most five teams.
There was also a tax across the board of 2. All players will be credited with service time counting towards eligibility for arbitration, free agency, and pensions for the strike.
Players who were sent to the minors between July 28,when the strike date was announced, and the beginning of the strike can buy back the service time for the remainder of the season by returning the minor-league salaries they received during the strike; 60 of 70 players affected did so.
In return, the union will not take any legal action against the owners for actions such as unfair labor practices during the strike. Because the proposal was approved after the period for free-agent signing began, a few last-minute details were added.
Two players who would have become free agents with the added service time but who resigned with their original teams were still considered signed; all other affected players became free agents, and arbitration offers for these players stood.
Draft-pick compensation for these new free agents will be with sandwich picks between the first and second rounds instead of picks from the signing team; this slightly increases their value to new teams, as compensation for the shorter signing period. The deadline for free agents to accept or reject arbitration was delayed from December 19 to January 2.
What has happened as a consequence of the agreement? The John Olerud deal may have been a direct consquence of the tax system. Such trades have occurred in the past, but the new system creates an incentive for high-payroll teams to make these trades.
Such trades can either be used to get rid of overpaid players or to add tax-free cash to a deal. There has been some discussion about rewriting the rules to prevent such trades.
By Friday August 12, , when the MLB Players' Strike began, the Orioles had scored runs ( per game) and allowed runs ( per game) with a record through games. They were games behind the Cleveland Indians () in the AL Wildcard Race. Baseball Player Essay Examples. 35 total results. A Biography of Babe Ruth a Baseball Player. 1, words. An Examination of the Infamous Striking of Baseball Players. 3, words. 7 pages. Pitchers: The Great Thinkers of the Game of Baseball. The result is a book as rich in insights into baseball's problems as it is full of indelible portraits of the people who make the Northern League special; a book that blends the texture and history of grassroots baseball with the many dramas of the league's season.
As an example of a possible trade of the second type, suppose that the Blue Jays had believed that Olerud was being fairly paid. Since the tax is based on opening-day payrolls, another effect is that teams have an incentive to defer payroll increases until opening day.
The Marlins and Orioles reportedly did this, waiting to announce the contract extensions for Gary Sheffield and Cal Ripken until after opening day so that the extensions would not count against the taxes.
The other consequences of the agreement depend on the fact of an agreement, not on its details. The Dodgers probably would not have been offered for sale without an agreement; the existence of labor peace increases the market value of the team. Interleague play, and some licensing and marketing deals, were contingent on an agreement.
What is a salary cap? A salary cap is an agreement which places an upper limit and sometimes a lower limit on the money each team can spend on player salaries. There is apparently no mechanism for enforcing the floor, although a grievance could probably be filed with an arbitrator.
A decision by an individual team to set a budget is not a cap. Several teams did this, publicly announcing their budgets, with no complaints of collusion. The Tigers cannot do anything to stop this except for going over their budget. They might decide to do this; for example, if the player at stake is a hometown hero, he could produce a lot of revenue for the Tigers.
A salary cap would force every team to have the same budget. This is an essential feature of the salary cap; the Yankees and Tigers have an agreement which affects what the Yankees can pay for a Tigers player. This plan would be similar in principle to a salary cap, but acting on a different area of spending.
Since it would not directly affect salaries, it might not need union approval. A possible justification for this proposal would be to prevent teams whose salary spending is limited by a tax or cap from shifting their spending to other areas.
However, the effects would be more punitive, because some teams, such as the Dodgers and Braves, spend far more than the cap level; they would have to dismantle large parts of their existing scouting networks.
It would also reduce the overall level of play, because players who could not be scouted by baseball, or who had alternatives to their reduced player-development contracts, would be lost to the game. In addition, the money saved by baseball would not all go to the owners; both sides in the labor negotiations would be aware of the increased profits due to reduced scouting expenses.
As a result, salaries would be likely to increase. Plans in both this and the next section are listed in chronological order; the history of the final plan and of its approval is at the end of this section. Details of some recent plans have not been officially released.
The published details were apparently incomplete; the following details were worked by curve fitting with an Associated Press chart. The rest of the revenue would be distributed to clubs under the limit, in proportion to their revenue; this would give such clubs an incentive to increase revenue, and thus to sign players who would increase it, but only if it left them under the limit.
The proposal would also lose some of the revenue-sharing effect of a tax; the Mets, for example, had very high revenues but a below-average payroll at the time of the proposal, and would thus get a large share of the tax distribution.By Friday August 12, , when the MLB Players' Strike began, the Orioles had scored runs ( per game) and allowed runs ( per game) with a record through games.
They were games behind the Cleveland Indians () in the AL Wildcard Race. Baseball Player Essay Examples. 35 total results. A Biography of Babe Ruth a Baseball Player. 1, words. An Examination of the Infamous Striking of Baseball Players.
3, words. 7 pages. Pitchers: The Great Thinkers of the Game of Baseball. On July 28, the Players Association executive board set August 12, , as a strike date.
When that day came, the players went ahead with their threat to walk off the job.  The last games of that baseball season were played on August 11, The result is a book as rich in insights into baseball's problems as it is full of indelible portraits of the people who make the Northern League special; a book that blends the texture and history of grassroots baseball with the many dramas of the league's season.
Twenty years ago today, there was no baseball. On Aug. 12, , the Major League Baseball Players Association went on strike, initiating what became, at the time, the longest work stoppage in American professional sports. The players' strike ended the season prematurely.
But here's how things should have wrapped up in what would have been one of the sport's greatest ever years.