October 17, 2021

Housing for the Minors

Major League Baseball will in some way will help minor league players with housing next season.

That would not be the case, according to players, were salaries higher. With signing bonuses between domestic and international players topping $450 million in 2021, not all players face financial issues. But after taxes, the majority of players’ salaried take-home pay is minuscule.

ESPN.com

I kind of disagree with that last statement. Federal income taxes are 12% up to $40,000. Social security taxes are another 7% or so, let’s call it 20%. Wait until they start making real money. If the author is calling for lower tax rates, I’m all for that.

The problem, of course, is the players are paid what the market will bear. MLB teams are not holding a gun to their heads forcing them to sign a contract, which as adults they should understand. The problem is that for every low bonus player who signs a contract, there are probably a 100 more who would be happy to take his place if he said to baseball, “No thanks.” And that is the player’s right.

A similar thing happens to low-level front office people. Salaries for their jobs are lower in baseball than in other professions, because so many people want to work for a team, clubs can find good employees at a low price.

I’m glad MLB is doing this as the article makes clear there are problems beyond just affording housing. I suspect it will mean better players coming through the pipeline, as some who may have refused to play for that pay might join the minors now, and better housing conditions should mean better health.

Leave a Reply

Your email address will not be published. Required fields are marked *