This is the first ever negotiation between MLB and minor league players.
Major League Baseball and minor league baseball players are involved in their first ever collective bargaining negotiations and there is a third party who does not have a seat at the table. Minor League Baseball owners. Some of those owners might be wondering how much is this going to cost them in revenue because MLB probably does not want to foot the bill entirely when a deal is done. The players want more money and better working conditions. MLB views minor league players as no more than seasonal employees who should be grateful that they have an opportunity to play baseball even if the players do not get minimum wage to work. The Trump Administration gave MLB a big victory over the minor league players in 2018 when the Save America’s Pastime Act amended the 1938 Fair Labor Standards Act to exempt baseball players from the law’s minimum wage and overtime requirements. MLB pays minor league players’ salaries.
In 2022, however, federal judge Joseph C. Spero ruled that minor leaguers are year-round employees who work during training time and found Major League Baseball violated Arizona state minimum wage law. MLB uses minor league baseball for research and development but MLB Commissioner Rob Manfred does not necessarily want to say that. “MLB will spend at least $1.03 billion in 2022 to operate the Minor League system,” he said. “Of that amount, about $750 million will be spent on player compensation and benefits, with that amount rising to over $800 million in 2023. MLB receives approximately $25 million in revenue from Minor League operators each year. As a result, the net subsidy MLB Clubs provide to Minor League operations is over $1 billion.” MLB is going to get money from minor league operators who run teams on a shoestring to help out financially when an agreement is reached.
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