December 19, 2013

WHAT'S AT STAKE

Major league baseball players are very well compensated for what they do.  The Associated Press reports that the average major league player salary was $3.39 million, an increase of 5.4 percent from the previous season. 


In contrast, civilian compensation is increasing at an annual rate of 1.9 percent, according to the U.S. Bureau of Labor Statistics. The average U.S. wage in 2012 was $42,498, according to the Social Security Administration.

The Yankees had the highest average for the 15th consecutive season at $8.17 million, breaking the mark of $7.66 million when they won the World Series in 2009. The Los Angeles Dodgers were second at $7.82 million. Houston's average of $549,603 was the smallest since the 1999 Kansas City Royals at $534,460. The Miami Marlins were 29th at $830,069, down from $3.77 million in 2012, when they ranked 10th.  World Series champion Boston was fourth at $5.46 million, just behind Detroit at $5.53 million. St. Louis, which won the NL pennant, was 10th at $3.75 million.
Tampa Bay had the lowest ranking among the 10 playoff teams and was 24th at $2.13 million.

Baseball's collective bargaining agreement requires a team to use revenue-sharing money it receives "in an effort to improve its performance on the field." The Marlins had been required to raise player payroll annually from 2010-12 under an agreement between MLB and the union.
However, the issue is being dealt with under a provision in the collective bargaining agreement that gradually eliminates the 15 teams in the largest markets from receiving revenue sharing, and the Astros are 15th. Under that provision, those clubs forfeited 25 percent of the money this year, half in 2014, 75 percent the following year and all in 2016.

Among regulars at positions, designated hitters took over from first basemen for the highest average at $10.5 million. First basemen were next at $6.5 million, followed by starting pitchers at $6.3 million, second basemen at $5.8 million, outfielders at $5.6 million, third basemen at $5.2 million, shortstops at $4.5 million, catchers at $4.4 million and relief pitchers at $2.2 million.

The lure of being a millionaire playing a child's game is one of the reasons why players continue to cheat. There is life-changing money at stake. Even with strict steroid testing, players continue to try to find a way around the protocols. This goes for minor league players thinking juicing could be their only way to make a big league team, to veterans who fear that they may lose their job or big money free agent contract years if they don't enhance their performance levels.

It is not that the players should not get what teams are willing to pay. According to Forbes Magazine, MLB had record revenues in 2013, with gross revenues exceeding $8 billion for the first time, ever.

While exact figures were not revealed, baseball will end 2013 with revenues between $8-$8.5 billion which is more than a 10 percent increase from last year's $7.5 billion revenue figure. The revenue growth is happening while attendance has been ostensibly flat for the league. The continuing growth  engine for baseball is in television revenue, especially the team's new regional television deals.