MAJOR PROBLEMS FOR THE MINOR LEAGUES

PART TWO

By:  Holly Horning

Last week, we started to delve into the hot-button topic of the minor leagues and this year’s 5-round draft. If you didn’t catch it, or need a refresher, here it is:

https://totallytigers.wordpress.com/2020/05/13/major-problems-for-the-minor-leagues/

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By voting to only have 5 rounds, instead of the usual 40, MLB owners are saving millions of dollars. On the downside, there will be lots of talent that will get buried and forgotten. Some, but not all of that talent, will end up signing as free agents for the beyond-measly sum of $20,000 – instead of the 6- and 7- figures given out in the past.

And since teams can’t sweeten the pot and pay prospects more in order to sign them, expect those free agents to favor the competitive and well-run teams. Rebuilding and non-competitive teams, take heed.

So is all the drama surrounding the minor leagues just coincidence?

No, because MLB has turned their attention to taking them over in order to create a more efficient system (their thoughts, not mine) and increase their revenue. After all,  12 straight years of declining attendance has pushed owners to seek out other ways of maximizing revenue. Improving the game costs money, you know.

How did it all start?

Back in early 2019, the Toronto Blue Jays announced that they would double the pay of their minor leaguers in order to resemble something more of a living wage. For years, MLB has come under attack for paying those players substantially below ($4K – $9K per year) the poverty level.

Toronto’s decision undoubtedly forced every other team to adopt the same promise. And in response, MLB owners came back several months later with the proposal to cut 43 (now updated to 40) minor teams they felt were “under-performing.”

Their strategy was clear. If they have to increase payroll, they are going to cut the number of players being paid to effectively cancel out the payroll increases. God forbid that owners would have to shell out more cash.

This now being followed with the recent approval to cut 15 draft rounds, pay out bonuses over 2 years and sign free agents for $20K. Multiple reports are stating that owners, going forward, will not return to the 40-round draft and will instead cap it at 10 rounds.

More than 1 sports economist say that the owners are conveniently using the current pandemic and loss of revenue as the excuse for dropping 15 rounds and substantially cutting the bonuses offered. Their ultimate plan actually is to “redo” the minors for economic reasons by reducing the number of players entering baseball.

And now, on the heels of the 5-round draft, the second shoe has dropped.

MLB has started talks with MiLB about taking over many of the duties of the National Association of the Professional Baseball Leagues (MiLB’s governing body). Franchise affiliations, in which owners pay each minor league team, would go away in favor of licensing agreements. It would work in a similar fashion to that of hotel chains.

The importance of this move would allow MLB teams to now sell sponsorships, media rights and licensing of these teams. Yet another stream of revenue for them.

And sadly, it will probably happen. Another example of MLB taking over an organization (or company) in order to create more revenue for themselves. They are not focused on improving the game. (We’ll cover this next week in greater detail so please save your comments for then.)

The plan calls for the culling of teams who have more than 4 full-season farm teams. And the National Association has been lobbying Congress as they attempt to fight this plan.

Only one problem. Two, actually.

The pandemic hit and their issue got put on the back burner.

And two, if the minor leagues don’t have a season, they will have zero revenue with most teams being forced to shut down. Almost all of the money they bring in are due to ticket sales. Most of the minor leagues have already laid off or furloughed many of their employees.

This plays perfectly into MLB’s diabolical clutches.

The minors now don’t have options – or resources. They are being put in a position where they will be forced to accept in order to survive.

Baseball, as we know it, is changing dramatically. MLB owners see the opportunities being created for them due to the pandemic. Renewed calls from Congress to reevaluate their anti-trust exemption are also now on the back burner and owners are pushing their agenda while they can.

Expect all of these changes involving the minor leagues to be green-lighted. Expect the owners to gain as much of an upper hand as possible this year. After conquering the minor leagues, they now need to turn their focus to the upcoming CBA.

Today, the minors. Tomorrow, the Players Association.

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