MLBPA Head Tony Clark On League Economics, TV Deals, Minor League CBA
The newly-formed economic reform committee comprised of five team owners drew some criticism from MLB Players Association executive director Tony Clark, who told The Athletic’s Evan Drellich that “the underlying theme” of the committee is reducing and controlling player payroll rather than any significant reshaping of the league’s business.
“The economic reform committee is not a new idea. They had a Blue Ribbon panel, and even an economic committee that was put together back in 1991….Those two in particular, and perhaps even this third, based on the comments that came out today, is focused in on how best to depress player salaries,” Clark said.
The MLBPA declined to make an initial comment last week when the committee was announced, though it naturally isn’t surprising that the union and the owners would have greatly differing perspectives on economic inequalities within baseball. For starters, Clark feels that “baseball is doing very well,” which seems to belie the existence for the committee in the first place.
“There was a lot of discussion in 2020 about the challenges that the industry had. There were a number of positions taken suggesting that the industry was in harm’s way, and was unlikely to come out of it for years following,” Clark said. “And yet, 2021 (league-wide) revenue was nearly back to what it was pre-pandemic; 2022 is above what it was pre-pandemic. And so the industry is doing well.”
The possible bankruptcy of the Diamond Sports Group is the primary reason for the committee’s creation, as 14 different MLB teams have broadcasting deals with Bally Sports (the regional networks owned by Diamond Sports). This will certainly have a major impact on the revenue streams for those teams, but only in the near future, Clark argues.
“We think, based on the expertise that we’re receiving, that over the long term, growth will still happen,” Clark said. “Live events, sports itself, have still done remarkably well. It’s the [regional sports network] model that appears to be challenged, not fan interest in sporting events.”
While certain teams could be harder hit depending on the specific length of their TV contracts, the potential also exists for those game broadcasts (and thus revenues) to be covered via new deals with streaming platforms, as opportunities could emerge in relatively quick fashion should a bankruptcy trigger a resolution to any pre-existing contracts with the Diamond Sports Group.
To this end, it is possible a good portion of the Bally Sports-related problems could be solved well before the end of the current Collective Bargaining Agreement, which expires at the end of the 2026 season. Given how the CBA was only settled less than a year ago in the wake of a 99-day lockout, much could still change between now and 2026, though the league seems quite likely to continue to push revenue disparities between teams as a prime motivator for an overhaul of baseball’s financial structure in the next CBA.
Commissioner Rob Manfred noted last week that the league’s exploration of the Bally Sports issue has led to a broader discussion between owners of revenue disparities, which is the other purpose of the economic reform committee. A salary cap doesn’t appear to be on the table for now since even the owners, Manfred said, would have difficulty in finding a cap ceiling that would be agreeable to all parties.
That said, Clark reiterated the longstanding MLBPA tenet that “we’re never going to agree to a cap….we’re not going to agree to a cap. A salary cap is the ultimate restriction on player value and player salary. We believe in a market system. The market system has served our players, our teams and our game very well.” The last round of CBA talks did involve the union exploring the idea of a salary floor, which Clark said was “similar to what currently exists on the top” in terms of the current luxury tax structure rather than an actual cap. However, “we have yet to have a conversation with the league that doesn’t include something far more restrictive on the top end. That makes the conversation null and void to this point.”
Unsurprisingly, Clark praised the Padres’ increased spending, which has come under public criticism from some owners (including the Rockies’ Dick Monfort). Though the Padres play in a relatively smaller market, Clark feels the team’s willingness to spend and compete at the upper levels “should be celebrated, not questioned.”
“The question that should be asked in regards to one team’s payroll versus another, is whether or not that team is making a conscious decision to have its payroll there, or whether it has the ability to increase its payroll?” Clark said. “The answer is the latter, and not the former. So at the end of the day, particularly when you see teams in smaller markets — aka San Diego, in this instance, as the best example — provide a level of engagement for their fans, and a level of excitement in being one of the seven smallest markets we have, it begs the question as to why they made that decision, and why others aren’t.”
Returning to labor talks, the union and the league are in ongoing negotiations about another CBA, the first agreement between MLB and minor league players. Though no deal has been reached since the two sides began talks in November, Clark doesn’t feel a work stoppage is likely if an agreement isn’t in place by Opening Day, since “the greater likelihood is that the terms and conditions that currently exist will likely continue as we continue to negotiate.” According to Clark, one of the roadblocks is that the league has again looked to reduce the size of minor league rosters, which the union considers a “non-starter” of a proposal.
Diamondbacks Notes: Spending, Ballpark, Martin, Jones
Diamondbacks managing general partner Ken Kendrick and team president/CEO Derrick Hall spoke with MLB.com’s Steve Gilbert and other reporters earlier this week, discussing several topics about the club’s offseason and future plans. In regards to the biggest-picture topic of the Diamondbacks’ quest for a new ballpark, Hall said that “nothing has really changed yet….We’re still looking at what other options there might be in Maricopa County, not outside of Maricopa County,” and that “we’ll start accelerating that process again” now that the MLB lockout and the pandemic delayed the process. The club’s lease at Chase Field is up after the 2027 season, and while the D’Backs have been in talks with Phoenix officials, there were some reports in 2019 that the Diamondbacks had possibly considered Las Vegas and Henderson, Nevada as alternate sites. Hall said that the team would likely prefer to remain in the downtown Phoenix area, and Kendrick added that “whether it be the downtown setting or perhaps a ballpark somewhere in the Valley that would be a brand new one,” the D’Backs are “prepared to spend hundreds of millions of dollars” to help fund the construction of a new home.
Speaking of finances, the Diamondbacks have had an active offseason as the team looks to improve on its 74-88 record from 2022. The Snakes’ current payroll sits at around $118.9MM, which Kendrick noted was almost a 30 percent increase from last year’s figure. While this spending still puts the D’Backs in the bottom half of all MLB payrolls, Kendrick said that ownership was prepared to reinvest at the deadline if necessary: “If the team is competitive and has the chance to play in October is there, we’re going to spend more money to get there.”
More from Arizona…
- Corbin Martin has worked mostly as a starter over his pro career, but Nick Piecoro of the Arizona Republic writes that the D’Backs are transitioning Martin into a full-time relief role. The hope is that the new bullpen role will help Martin achieve some consistency (after posting a 6.71 ERA over his first 57 2/3 innings in the majors) and also help keep him healthy — the righty missed most of 2019 and the entire 2020 season while recovering from Tommy John surgery and a follow-up oblique strain, and Martin also had IL trips in each of the last two seasons. As Piecoro noted in another piece, those injuries meant that the D’Backs were awarded a fourth option year on Martin, giving the team additional control over their ability to move Martin between the majors and minors. “So far, I feel like health-wise, it might be the best decision. Not overtaxing, being able to go out there and focus on the three outs to get every inning…Being able to build off that is going to be able to help me in the long run,” Martin said. Martin has averaged 94.5 mph on his fastball at the big league level, but D’Backs manager Torey Lovullo said that Martin hit the 97mph mark during a live batting practice session on Thursday.
- After undergoing shoulder surgery last year, Druw Jones should be ready for action around the start of the minor league season, Diamondbacks GM Mike Hazen told Piecoro and other reporters. Jones’ first minor league game will be his official pro debut, as he suffered a torn left posterior labrum during a workout just three days after signing his post-draft deal. Arizona selected Jones with the second overall pick in last summer’s draft, and injury notwithstanding, Jones is still a consensus top-35 prospect in baseball even before he has taken the field.
AL Notes: Kwan, Bieber, Varsho, Pearson
After a sensational rookie season, Steven Kwan says he’s open to discussing a long-term contract extension with the Guardians, according to Zack Meisel of The Athletic.
Kwan finished third in AL Rookie of the Year voting last year, after posting a .298/.373/.400 line with six home runs across 638 plate appearances. A lot of his value was in the defensive side of things, as Kwan amassed 21 Defensive Runs Saved and 10 Outs Above Average for his work in left field, contributing to a 4.4 fWAR rookie year. It was quite the rookie year for a player who was drafted in the fifth round of the 2018 draft and never featured on any top-100 prospect lists.
In any case, Kwan is now a nailed on starter for the Guardians and he says “it’s mind-blowing” to even be discussing a long-term extension. Kwan picked up a full year of service time for the Guardians last year, which means he has two more seasons of pre-arb control and then three years of arbitration before he likely hits free agency after the 2027 season. While it seems highly unlikely anytime soon, Kwan could technically be optioned to the minors still, in which case his scheduled free agency could be pushed back.
As for what a contract extension might look like, Ronald Acuna Jr.is the most obvious comp that immediately comes to mind after he signed an eight-year, $100MM contract with Atlanta after posting 4.1 fWAR in almost a full year of service time. Acuna was the consensus top prospect in all of baseball going into his rookie year, so there was a fair bit more hype and certainty around his future. On the flip side, that deal was widely considered to be extremely team-friendly at the time, given Acuna’s upside as an elite five-tool player. Regardless, it’s an interesting starting point to begin considering what a potential extension for Kwan may look like.
Here’s some more notes from around the American League:
- Sticking with Cleveland, and one player who seems unlikely to be taking an extension is starting pitcher Shane Bieber. Cleveland’s ace told reporters he’d “love to entertain that, but right now, I’m going to focus on what I can control and that’s my work on the field.” Bieber has two remaining years of club control and is coming off a season in which he tossed 200 1/3 innings of 2.88 ERA ball, finishing seventh in AL Cy Young voting. What that means is that any extension for Bieber is going to be significant, and likely well above the biggest contract Cleveland’s ever given out, Jose Ramirez‘ five-year, $124MM extension.
- Shifting north of the border to Toronto, and headline trade acquisition Daulton Varsho is set to be a big part of the Blue Jays’ plans this season, but it seems he’ll be playing almost exclusively in left field. According to The Athletic’s Kaitlyn McGrath, there are currently no plans for Varsho to catch any spring training games for the Blue Jays. Of course, Varsho could sporadically catch in the case of any emergency, but it’s unlikely he’d approach anything near the 55 games he caught for Arizona over the past two seasons. That’s not a huge surprise, given Toronto traded away Gabriel Moreno to get Varsho and have Alejandro Kirk and Danny Jansen slated to handle the catching duties this season. Varsho hit .235/.302/.443 with 27 home runs while earning 17 Outs Above Average for his outfield work in Arizona last year.
- McGrath’s report also confirms that former top prospect Nate Pearson is being built up as a reliever this spring. While he won’t be starting, it does seem like he’ll be in more of a bulk role, rather than a one inning relief role, per McGrath. Pearson, once a top-ten prospect in all of baseball, has been restricted to just 33 largely unsuccessful big league innings since his debut in 2020, and didn’t pitch at all in 2022 as a lat strain restricted him to just 15 2/3 minor league innings. McGrath reports that Pearson was sitting at 96-97 mph, with a fastball that topped out at 100 mph.
Diamondbacks Re-Sign Jake Hager To Minor League Deal
The Diamondbacks have re-signed infielder Jake Hager to a minor league deal, according to the MILB transaction log.
Hager, 30 in a week, slashed .240/.345/.280 for the Diamondbacks over 59 plate appearances last year. He spent the bulk of the year at Triple-A, where he picked up five home runs as part of a .261/.342/.391 line across 303 plate appearances. That was the second stint Hager had had with the Diamondbacks. After being claimed off waivers from the Mets, Arizona released him at the end of the 2021 season before bringing him back on a minor league deal.
Originally drafted 32nd overall by the Rays back in 2011, Hager toiled away in the minors for Tampa Bay, Milwaukee and Seattle before the Mets finally gave him his first taste of the majors in 2021. He didn’t hit much across a brief spell with the Mets and Diamondbacks in 2021, and all told Hager’s put together a .197/.307/.224 line across 89 career MLB plate appearances.
Hager came through the minors as a shortstop, but has bounced around the field in his short time in the majors, logging time at second, third and shortstop as well as both corner outfield spots. For the third-straight season, Hager will provide the Snakes with some infield depth in the upper minors.
MLBTR Chat Transcript
Click here to read a transcript of this morning’s live MLBTR chat with Simon Hampton.
Latest On Kyle Hendricks’ Recovery
Veteran Cubs starter Kyle Hendricks is a little more than a month behind the rest of the pitchers in camp, and is hoping to make minor league rehab starts sometime in May, according to Sahadev Sharma of The Athletic.
Hendricks stepped on a mound for the first time since a July 5 injury ended his season on Friday, tossing around ten pitches in a bullpen session. That was slightly ahead of schedule, as Hendricks hadn’t initially been slated to return to a mound until March 1 as he recovers from a capsular tear in his shoulder. That he’s one week ahead of his schedule is promising, but he’s still significantly behind the rest of the pitchers in camp, and that means the Cubs look set to be without Hendricks for a number of weeks to begin the season.
A return to rehab stints in May would put seemingly put Hendricks in a position to rejoin Chicago’s rotation sometime later in that month or in early June. The Cubs look reasonably well positioned to absorb the absence of Hendricks early in the season, with Marcus Stroman, Jameson Taillon, Justin Steele and Drew Smyly holding down four of the spots. It should mean Adrian Sampson will get the opportunity to build off his impressive 19-start run in 2022 and round out the Cubs’ opening day rotation. Sampson pitched to a 3.11 ERA last season, and has a 3.03 ERA over 139 2/3 innings for the Cubs between 2021-22. His previous 153 innings for Seattle and Texas between 2016-19 had resulted in a 5.71 ERA.
Hendricks will surely land on the injured list to start the season, but his progress over the next month should determine whether that’s a trip to the 60-day IL or not. Teams can put players on the 60-day IL again now, which would free up a spot on the 40-man roster, but the 60-day clock would only begin from March 30 (opening day), so a team would want to be certain a player is going to be unavailable until at least the end of May before making that move.
Hendricks is entering the final guaranteed year of his contract and is owed $14MM in 2023. There’s also a vesting $16MM option for 2024 that comes with a $1.5MM buyout. Hendricks, 33, has seen a bit of decline in recent years, working to a 4.78 ERA over 48 starts over the past two seasons. That came on the heels of a number of quality campaigns for the Cubs, as Hendricks owned a 3.12 ERA over 174 previous starts between 2014-20.
Padres, Manny Machado Still Discussing Extension
The Padres and Manny Machado remain in discussions regarding a potential long-term contract extension, reports Dennis Lin of the Athletic. There’s no indication an agreement is likely, through it comes as something of a surprise to hear conversations are still ongoing.
Machado implied last week he’d cut talks off when the sides hadn’t agreed to a deal by February 16, a self-imposed deadline representing the outset of Spring Training. At the time, the NL MVP runner-up said he “just wanted to focus on baseball” and “didn’t want to really continue talking about contracts or the business side of things” once exhibition play got underway.
The star third baseman wasn’t as firm when chatting with Lin about the situation today. “Deadlines are deadlines but they know where I stand,” Machado said. “The opportunity will arise if it comes to that. You know, nothing’s out of question. Obviously, they know how much San Diego means to me and what I want to be here. At the end of the day, they knew exactly where I was when that deadline was set. And we’ll see what happens. Our main focus right now is playing baseball. We’ll see.”
Machado is entering the fifth season of the ten-year free agent deal he signed over the 2018-19 offseason. The contract affords him the chance to opt out of the final five years and $150MM at the end of the 2023 campaign. Machado has already confirmed he’s planning to test the market at the end of the year. That declaration came as no surprise, as he’d be in position to handily beat a $150MM guarantee on the open market if he posted a season at similar levels to his last three years.
A new agreement with the Padres could make that a moot point. San Diego owner Peter Seidler told reporters this week re-signing Machado was his “top priority” (relayed by 97.3 FM The Fan). That obviously could take place after the season if/when Machado tests the market, but Lin’s report again raises the possibility of a deal coming together prior to Opening Day.
Financial terms presently under consideration aren’t known. Kevin Acee of the San Diego Union-Tribune reported last week the club had offered an additional $105MM over five seasons on top of his existing deal, which would’ve brought their outstanding commitment to $255MM between 2023-32.
Seidler has signed off a rapid spending hike over the past few seasons. The Friars trail only the Mets and Yankees in projected 2023 payroll. They signed Xander Bogaerts to an 11-year, $280MM free agent pact this offseason and have already worked out a five-year extension with right-hander Yu Darvish this spring. Bogaerts, Fernando Tatis Jr., Darvish and Joe Musgrove are all counting for more than $15MM annually for the foreseeable future.
That hasn’t deterred Seidler, president of baseball operations A.J. Preller, and their staff from continuing to pursue star talent. The Friars took swings at Trea Turner and Aaron Judge before landing Bogaerts and clearly are hopeful of retaining Machado. They’re also down to two years of arbitration control with Juan Soto, who could be in position for one of the largest deals in MLB history when he hits free agency over the 2024-25 offseason.
Machado owns a .280/.352/.504 line in just under 2200 plate appearances as a Padre. He’s coming off perhaps the best season of his career, one in which he posted a .298/.366/.531 slash with 32 home runs to earn his sixth All-Star nod. Machado typically pairs that middle-of-the-order offense with excellent defensive marks at third base. He’s headed into his age-30 season, so any new deal (either an extension or free agent contract) would figure to come into play for his age-31 campaign and beyond.
Ken Giles Works Out For Padres
Free agent reliever Ken Giles threw a bullpen session in front of Padres officials at their Arizona complex today, reports Jon Heyman of the New York Post (Twitter link). Whether that has resulted or will lead to an offer isn’t known, though Heyman adds that Giles plans to continue throwing twice a week until he lands with a club.
Now 32, Giles is a few years removed from his 2014-19 peak. He was one of the sport’s best late-inning weapons between the Phillies, Astros and Blue Jays. Over that six-year stretch, the hard-throwing righty combined for a 2.67 ERA while striking out a third of batters faced and limiting opponents to a .215/.276/.331 line. Giles remained at the top of his game for the Jays in 2019, tossing 53 frames of 1.87 ERA ball with a strikeout rate just under 40%.
Arm injuries have unfortunately intervened over the past few seasons. Giles was limited to just four outings during the shortened 2020 campaign. That season culminated in Tommy John surgery, from which he spent all of the following year recovering. Giles signed a two-year contract with the Mariners over the 2020-21 offseason. Seattle hoped he’d regain his excellent form in the second season of that deal but didn’t give him much of a look once he returned to health. The M’s released Giles after just five appearances.
While he caught on with the Giants on a minor league contract shortly thereafter, his stint with San Francisco proved exceedingly brief. Giles threw three times for their top minor league affiliate in a span of a week before being released. He didn’t sign elsewhere during the season. He’s returned to the mound this month, throwing for interested teams as he looks for a new landing spot.
Giles seems likely to be limited to minor league offers with Spring Training invitations at this stage of the offseason. He’s one of a handful of interesting relief fliers who remains available via free agency. Corey Knebel and Zack Britton are also former star relievers looking to rebound from recent injury issues.
Warner Bros. Discovery Planning To Leave RSN Business
Warner Bros. Discovery, the owner of AT&T SportsNet and a minority shareholder of Root Sports, has informed teams it’ll cease participating in the regional sports network business, according to reports from John Ourand of Sports Business Journal and Joe Flint of the Wall Street Journal. WBD has local broadcasting agreements with a handful of teams in MLB, the NBA and the NHL.
The MLB teams affected are the Rockies, Astros and Pirates. The Mariners also have a relationship with Warner Bros. Discovery; Ourand writes the Mariners own 60% of their Root Sports Seattle venture, with WBD owning the other 40%. However, Flint reports the Seattle regional sports network is not part of WBD’s ongoing proceedings.
Ourand writes that the channel has informed teams they’ll have until March 31 to reach an agreement to reclaim their broadcasting rights from the RSN’s; if no deal is agreed upon, the networks are expected to liquidate via Chapter 7 bankruptcy. Flint quotes from WBD’s letter, which told clubs “the business will not have sufficient cash to pay the upcoming rights fees” and proposed for teams to retake ownership of broadcasting rights for no purchase price beyond a relinquishing of civil claims against the networks.
Colorado, Houston and Pittsburgh join the list of nearly half the teams facing some uncertainty about the potential bankruptcy of the Diamond Sports Group that operates the Bally networks. Diamond, which is responsible for broadcasts of 14 clubs, missed an interest payment to creditors last week and is evaluating whether it’ll be able to abide by its own broadcasting deals.
The difficulties facing both conglomerates come in response to declining rates of cable ownership. Cord-cutting has increased significantly over the past few years and is expected to continue given the rise of streaming alternatives. Warner Bros. Discovery provided a generic statement to Ourand alluding to financial problems: “AT&T SportsNet is not immune to the well-known challenges that the entire RSN industry is facing. We will continue to engage in private conversations with our partners as we seek to identify reasonable and constructive solutions.”
The franchises’ next steps are unclear. Commissioner Rob Manfred told reporters last week the league would be in position to take over in-market broadcasts, if necessary, from the Diamond-operated networks. That’s presumably also true of the three clubs affected by WBD’s decision. There’s no indication fans in those markets should be concerned about forthcoming blackouts because of the RSN collapse. Ourand reports that WBD informed clubs it’d allow them to use the same production staff/equipment of the current agreement if those teams agree to reclaim their broadcast rights.
Nevertheless, events of the past few weeks have highlighted questions about the long-term viability of the regional sports network setup. WBD’s withdrawal from RSN’s affects only one-tenth of MLB teams, but the ongoing Diamond uncertainty could put many more in a difficult position over the coming weeks.
Mets, Jaylin Davis Agree To Minor League Deal
The Mets are signing outfielder Jaylin Davis to a minor league contract with an invitation to big league camp, tweets Joel Sherman of the New York Post. The Beverly Hills Sports Council client had elected free agency at the start of the offseason after being outrighted off the Red Sox’s 40-man roster.
Davis, 28, has reached the big league level in each of the past four seasons. He’s seen action with the Giants and Boston but always in a limited capacity. Davis has played in 38 MLB games and tallied 95 trips to the plate, hitting .207/.274/.299 with a 30.5% strikeout percentage.
Swing-and-miss has been an issue for Davis in the minor leagues as well. He fanned at a near-31% rate over 346 plate appearances with the Sox’s top affiliate in Worcester last season. The right-handed hitter paired that with a strong 12.4% walk percentage but still stumbled to a .203/.312/.334 line overall.
Davis has fared better in previous Triple-A stints, however. Over parts of three seasons at the top minor league level, he owns a .258/.348/.503 slash with a 29.2% strikeout percentage while walking at a 10.6% clip.
Davis has experience at all three outfield positions. He’s primarily worked in right field as a professional, logging over 3000 minor league innings there compared to fewer than 800 frames in both left and center. The Mets have Brandon Nimmo, Starling Marte, Mark Canha and Tommy Pham lined up for outfield work, with Darin Ruf an option for the corners. Davis joins Abraham Almonte, Tim Locastro, Khalil Lee and DJ Stewart among non-roster players in camp.