Baseball Musings
Baseball Musings
March 04, 2008
Change in Compensation?

Dave Yeager contributed $50 or more to the Baseball Musings pledge drive and dedicates this post to his blog Soul Kerfuffle.

Are more young players complaining about their salaries this season? It started with Prince Fielder, but Cole Hamels, Jonathan Papelbon and to a certain extent Jeff Francoeur didn't like the offers contracts they received. After describing the contract as a "low blow," Hamels had this to say:

The Phillies are "very business-savvy," said Hamels, who is expected to be a "Super Two" player after this season. "When you know you can have a guy for a certain amount, why go up? I mean, truly. If you're running a successful business, I don't know why you really would."

But in the next breath, Hamels said he would remember this.

"That will affect down the line certain things that come up," he said. "You can't just all of a sudden throw everything out at [a player] at the last second and think that's really going to make him happy, because you still have checkmarks for what [the team] didn't do in the years before."

There's tension here because some teams, like the Indians and Rockies, recognize good talent at a young age and pay accordingly. Other teams, like the Phillies and Brewers are happy to go year to year. The players, however, are becoming more savvy as to their actual worth, and are starting to realize that the rules are screwing them out of money.

Remember, the MLBPA did not want full fledged free agency. They like the six-year limit for free agency because it keeps the supply of free agents low, so their salaries go higher. With more and more teams ignoring free agents building from within (see Yankees and Red Sox, this year), the great young player realize they are getting exploited so Gary Matthews and Carl Pavano can earn $10 million a year. If one of these four end up with a career ending injury, they've missed out on earning millions of dollars.

Major League Baseball would be better off making every player a free agent whenever his contract expired. That would keep the supply high and damp down salaries, but it would also benefit the great young players. It would change the compensation structure so players were paid for what they accomplished now, not in the past. If I were commissioner, I'd be using these four young men to push for such a deal.

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Posted by David Pinto at 06:22 PM | Salaries | TrackBack (0)
Comments

I once had a conversation with Scott Boras at an Arizona Fall League game, and I brought up the idea of making everyone a free agent. He thought the idea was horrible and did his best to steer the conversation in another direction. That was all the convincing I needed that the idea had some merit. Charlie Finely wasn't as dumb as he looked.

Posted by: Rich at March 4, 2008 08:10 PM

Does anyone else think that would also encourage more teams to pay something closer to slot in the draft?

Posted by: Chris at March 4, 2008 08:58 PM

If everyone becomes a free agent at the end of his contract, then obviously supply goes up. But demand also goes up -- now teams have many more spots to fill. Why, if demand and supply go up equally, would salaries be driven downwards?

Posted by: Steve at March 5, 2008 02:18 AM

Because the pool of players is bigger than the number of jobs available (think minor leagues). Also, teams have a choice. If there's one great free agent, a number of teams should bid and drive up his price. But if there are three or four great free agents, teams have a fall back plan and can go after someone else.

Posted by: David Pinto at March 5, 2008 07:39 AM

One of the main components of the current system is to keep players with the team that drafted them for some period of time. If you are going to make every player a free agent when his contract expires, you would need to do this all the way down through the minors. Otherwise you'd draft a guy, bring him along in your minor league systems for three years, he play for you for maybe one year and then jumps ship. You get no return at all on your investment in him. But if you implement this down through the minors, then there's no point in even having a draft. We back to where we were in the 1950's.

Now, if you want to throw a salary cap on top of all of that, you night be on to something.

Posted by: Scott Segrin at March 5, 2008 08:20 AM

A world where Neifi Perez gets paid a higher salary than a guy like Prince Fielder is a crazy, crazy world.

Posted by: robustyoungsoul at March 5, 2008 08:24 AM

Scott,

Yes, I would push the system down through the minor leagues and eliminate the draft. That would put US players on the same footing as Latin American players.

Posted by: David Pinto at March 5, 2008 08:27 AM

isn't this one way in which baseball actually mirrors the real world, most hese guys already had their 1.5 million dollar signing bonus and they are making $400,000 can we stop trying to organize benefits for them. You get a job, you start out at a lower pay scale then the guys who have been there 10/15 yrs, you may be 10X more productive than they are but they've been there 10 years and deserve more money than you, let these guys keep producing and they will all be paid handsomely.

Posted by: tvators at March 5, 2008 08:57 AM

I have two comments to make on this.

1) If they make every player a free agent, which team do you think would benefit the most? Do fans and other teams in the game really want the team with the most money to benefit from having everyone become a free agent when their contracts end?

2) When players agree to refund money when they no longer deserve to get paid 10mil *cough* Pavano *cough* then I'll feel sorry for them earning less when they are worth more.

Posted by: raymagnetic ™ at March 5, 2008 10:57 AM

It is crazy to say the Brewers don't recognize talent at a young age and pay accordingly. Of course they want to buy out some arby and free agent years and sign their young players such as Weeks, Hart, Braun, etc...and they plan on doing so. Of course, there is no way in hell Boras would let Fielder do that. If Prince would sign a deal similar to Tulowitzki's, the Brewers would do that in a second. But do you really think giving him a few hundred thousand extra now would lead him and Boras to sign with the Brewers when he hits free agency? They played it exactly right: stick to their pay scale (which is quite generous compared to many teams) pay Prince handsomly when he hits arbitration, and most likely replace him with LaPorta when he leaves as a free agent.

Posted by: Aaron at March 5, 2008 03:18 PM
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