MLBPA Calls Out Loria for Pocketing Revenue Sharing

[NatsAddict]

Florida Marlins: Low payrolls prompt Players Association to take action
> Posted by Juan C. Rodriguez on January 12, 2010 02:59 PM

The Florida Marlins ranked last or second-to-last four consecutive seasons in final payroll. That did not go unnoticed in the Commissioner's Office or with the Players Association.

In a joint statement released Tuesday, the Players Association said it had concerns the Marlins were not in compliance with Article XXIV (B)(5)(a) of the Collective Bargaining Agreement. That provision states:

"A principal objective of the Revenue Sharing Plan is to promote the growth of the Game and the industry on an individual Club and on an aggregate basis. Accordingly, each Club shall use its revenue sharing receipts (from the Base Plan, the Central Fund Component and the Commissioner’s Discretionary Fund) in an effort to improve its performance on the field. Each Payee Club, no later than April 1, shall report on the performance-related uses to which it put its revenue sharing receipts in the preceding Revenue Sharing Year. Consistent with his authority under the Major League Constitution, the Commissioner may impose penalties on any Club that violates this obligation."

The Marlins were one of "several clubs" Major League Baseball and the Players Association discussed. Here are the statements each of the sides made subsequent "extensive discussions":

MLBPA Executive Directior Michael Weiner: “In response to our concerns that revenue sharing proceeds have not been used as required, the Marlins have assured the Union and the Commissioner’s Office that they plan to use such proceeds to increase player payroll annually as they move toward the opening of their new ballpark.  Today’s agreement, which covers the period 2010 through 2012, calls for ongoing communication among the Marlins, the Commissioner’s Office and the Union as the Marlins proceed with that plan.  It also permits, after consultation among all parties, adjustments in the Marlins’ plan to respond to unforeseen developments, and calls for arbitral intervention if disagreements arise.  We greatly appreciate the willingness of the Commissioner’s Office and the Marlins to engage with us and ensure that all terms of the Basic Agreement are met.”


Marlins’ President David Samson said: “The Marlins have consistently made every effort to put the best product on the field and our record supports the fact that we have been successful in that regard.  Throughout the discussions, the Marlins maintained that there had been no violation of the Basic Agreement at any time.  While we know that the Marlins will always comply with the Basic Agreement, we were happy to work cooperatively with the Union and the Commissioner’s Office on this matter.”

MLB Executive Vice President, Labor Relations Rob Manfred added: “The Basic Agreement contains confidentiality provisions that preclude the parties from publicly discussing the specifics of the Marlins’ finances.  There will, therefore, be no comment by any of these parties on any further specifics of this agreement.  All three parties agree that the Basic Agreement provision on the proper use of revenue sharing dollars is an important part of our agreement.  Today’s announcement is the product of a positive dialogue between the MLBPA, the Commissioner’s Office and the Club.”

Bottom line: Looks like the Marlins payroll will increase incrementally leading up to the opening of their new ballpark in 2012, perhaps by greater leaps and bounds than they planned.

Sun-Sentinel

[The Chief]

Good, I hope they nail his ass to the wall.

[PANatsFan]

This is in several ways bad for the Nats, but good for baseball. Although with they terrible attendance they garner, maybe the low payroll is only fair.

[NatsAddict]

This is in several ways bad for the Nats, but good for baseball. Although with they terrible attendance they garner, maybe the low payroll is only fair.

It's been years since the Fish payroll has even equaled the RS.  Between RS, MLB.com, national TV broadcast, XM broadcast, and one of the most lucrative local radio and tv contract, the Marlins guaranteed revenue is about 3 times their payroll (which includes signing bonuses and MLB contracts not on the 25-man roster) before selling a single ticket.

[JMW IV]

Lerners are next on the list.

[NatsAddict]

More:

In unprecedented move, MLB, union want Florida Marlins to spend revenue-sharing money on the field
01/12/2010
by Joe Capozzi

UPDATE
Turns out you are not crazy after all, Marlins fans! At least, Major League Baseball and the Union now share your common belief that the Marlins were not spending revenue-sharing money they received from large-market teams on the field.

The Marlins maintain they have done nothing wrong, but know this — it is hugely significant that Major League Baseball and the Union sent out this release. It has never been done before.

The union and league are not saying the Marlins violated the revenue sharing rules. They talked about “suspicions.” But the existence of this agreement means the Marlins are being made an example of for other small market teams to make sure they spend revenue sharing money on the field.

“This is something you would think in certain markets is a shot across the bow,’’ one baseball official told me.

The Marlins won’t comment on what exactly this will mean for the 2010 payroll. But one conclusion I reach is that payroll may go up higher than previously thought — it was about $36 million in 2009 — and that second baseman Dan Uggla may end up playing for the Marlins in 2010 after all.

Does this mean pitcher Josh Johnson will get the four-year deal (at more than $40 million) that he wants?

Also curious is the timing of this release — AFTER the Marlins secured final funding for their new ballpark.

One source involved in these discussions say the agreement spelled out below is the first of its kind in baseball history and that no other team is being singled out, so far.

In the meantime, here is some required reading for good background on the lingering suspicions in recent years over the use of revenue-sharing bucks by the Marlins and other small market teams.

The press release today:

STATEMENT FROM MLBPA, FLORIDA MARLINS AND MLB
REGARDING MARLINS’ COMPLIANCE WITH REVENUE SHARING PROVISIONS OF THE BASIC AGREEMENT

The following joint statement was issued today by the Major League Baseball Players Association, the Office of the Commissioner of Baseball and the Florida Marlins:
The Basic Agreement requires that each Club use its revenue sharing receipts in an effort to improve its performance on the field. This requirement is of obvious importance to all players, Clubs and fans of the game. In recent years, the Union has had concerns that certain Clubs have not lived up to this requirement, and has consulted regularly with the Commissioner’s Office about those concerns. The Florida Marlins are one of a number of Clubs that have been discussed.
After extensive discussions, the three parties are pleased to announce that they have reached an agreement regarding the Florida Marlins’ continued compliance with Article XXIV(B)(5)(a) of the Basic Agreement.

MLBPA Executive Director Michael Weiner said:
“In response to our concerns that revenue sharing proceeds have not been used as required, the Marlins have assured the Union and the Commissioner’s Office that they plan to use such proceeds to increase player payroll annually as they move toward the opening of their new ballpark. Today’s agreement, which covers the period 2010 through 2012, calls for ongoing communication among the Marlins, the Commissioner’s Office and the Union as the Marlins proceed with that plan. It also permits, after consultation among all parties, adjustments in the Marlins’ plan to respond to unforeseen developments, and calls for arbitral intervention if disagreements arise. We greatly appreciate the willingness of the Commissioner’s Office and the Marlins to engage with us and ensure that all terms of the Basic Agreement are met.”

Marlins’ President David Samson said:
“The Marlins have consistently made every effort to put the best product on the field and our record supports the fact that we have been successful in that regard. Throughout the discussions, the Marlins maintained that there had been no violation of the Basic Agreement at any time. While we know that the Marlins will always comply with the Basic Agreement, we were happy to work cooperatively with the Union and the Commissioner’s Office on this matter.”

MLB Executive Vice President, Labor Relations Rob Manfred added:
“The Basic Agreement contains confidentiality provisions that preclude the parties from publicly discussing the specifics of the Marlins’ finances. There will, therefore, be no comment by any of these parties on any further specifics of this agreement. All three parties agree that the Basic Agreement provision on the proper use of revenue sharing dollars is an important part of our agreement. Today’s announcement is the product of a positive dialogue between the MLBPA, the Commissioner’s Office and the Club.”

Palm Beach Post

[NatsAddict]

Lerners are next on the list.

Nope, Pirates.

[The Chief]

Lerners are next on the list.

Ha, I really hope this was tongue-in-cheek.

[PANatsFan]

Ha, I really hope this was tongue-in-cheek.

If serious it was one of the most inane posts ever made on WNFF. So I'm sure it wasn't.

Royals and A's come to mind, and more recently the Padres and Rangers.

JMad's phone posting prevents him proper smiley usage, which sometimes blunts the humor of an impressive string of hilarious posts lately.

[NatsAddict]

The link to "other small market teams" within the Palm Beach Post article names the Pirates, and deservingly so.  I imagine the Padres aren't far behind.

[imref]

This is in several ways bad for the Nats, but good for baseball. Although with they terrible attendance they garner, maybe the low payroll is only fair.

if they have a payroll tax, they need a payroll minimum.

[HalfSmokes]

The link to "other small market teams" within the Palm Beach Post article names the Pirates, and deservingly so.  I imagine the Padres aren't far behind.

Padres may pass the Marlins this year if the can figure out a way to trade off Gonzalez without causing an outright revolt by fans

[JCA-CrystalCity]

Pirates should be next on the list. 

The Royals bumped up their payroll a bit recently.  Too bad it was on Jose Guillen, Jason Kendall, Kyle Farnsworth, etc. . .  There is not an MLB /MLBPA agreement outlawing stupid ("There's a fine line between clever and stupid").

SD and TX do not have the long history of pocketing money that the Marlins have (allegedly).  The Twins were cheaper, but more successful in their cheapness, than TX.  The problem with TX and SD is that their ownerships were dragged down by outside factors.  TX is still signing FAs like Vladi and Harden for multi-million $ contracts, and were actually under the financial supervision of the MLB front office.  SD should work itself out once the sale goes through.  If they have to move Bell and Adrian, they will do so to get a good return.

This letter is not about the occasional need to strip down and rebuild so you can contend.  It is about the persistent pattern of refusing to pay anything at all.

[PatsNats28]

Pirates qualify.

[PANatsFan]

JCA, who else could they mean? The Rays?

It's really sad that Glass opened his wallet but then has Dayton Moore making the decisions.

[JMW IV]

Ben put up a post about how this might affect the Nats over on MASN if anyone wants to bring it over here.

[NatsAddict]

I don't know whether to laugh or cry.

A little background - knowing nothing about baseball, Samson fancies himself a movie critic, and usually changes the subject to movies during the program rather than take questions about baseball.

Florida Marlins president David Samson’s turn not to talk about the past
by Joe Capozzi

Marlins president David Samson just finished his weekly radio show on 790 The Ticket — a little more than 24 hours after the Major League Baseball and the Players Union announced they will make sure the Marlins spend their revenue-sharing money on player salaries.

But Samson took a page out of Mark McGwire’s old playbook (”I’m not here to talk about the past.”) and — drum roll…. refused to talk about the agreement.

It made for a sometimes funny, sometimes uncomfortable 30 minutes of radio that featured one caller phoning in to hurl a four-lettered profanity at Samson before the bad word could be censored.

Samson did talk a little Marlins baseball. He said the Marlins are in negotiations with their seven arbitration players. There’s a deadline on Tuesday (Jan. 19) for both sides exchange salary figures; if no agreement is reached, the Marlins will stop negotiating and allow an independent arbitrator determine the player’s salary at a hearing next month.

Those players are Josh Johnson, Dan Uggla, Jorge Cantu, Cody Ross, Anibal Sanchez, Leo Nunez and Renyel Pinto.

“We’re trying to get all of them done by Jan. 19 and whether it’s one-year deals or multiyear deal remains to be seen,” Samson said, refering to the possible multi-year contract the team may give Johnson.

“We want a deal, with any player, that is fair and makes sense and that we still think the player can out-perform. That is how were going to keep operating from now until the end of time.”

First baseman Nick Johnson’s name was brought up. Johnson came to the Marlins July 31 in a trade with Washington but the team didn’t make him an offer after the season to come back in 2010. Johnson — who missed 23 days last year because of a strained hamstring and the flu — has since signed a $5.5 million free agent deal with the Yankees.

“As for Nick, it’s pretty simple,” Samson said. “We loved having Nick but if he¹s not on the field then it’s not gonna be helpful and if he is on the field then it’s going to be tremendously helpful. We’ve got people coming in who can play first base at the big league level whether it’s Logan Morrison or Gaby Sanchez, who are terrific in their own right and enable us to spend money elsewhere on other players who got natural raises.

“What that means to the listeners out there is that a player goes to sleep on Oct. 1 making $1 million and wakes up on April 1 making $5 million. That doesn’t happen in the real world but it happens in baseball That’s called arbitration. You have to have money to pay and you have to spread it as much as you can.”

Samson was asked if Wednesday’s news meant that Uggla was likely to stay.

“No change on Danny. It’s the same. He is in the same position as everyone of our players other than Hanley (Ramirez),” Samson said.

“We don't know know where we’ll be with Dan. We have him signed to a contract for next season. We just don’t know the amount but by Jan. 19 we will have a good idea of that amount.”

Samson didn’t say whether Uggla — who could get $8 million in arbitration — would be traded, although he was not asked that specific question. (The Marlins have been talking every day this week with Uggla’s agent.)

There were several attempts to get Samson to talk about the revenue-sharing agreement, but he said he was not allowed to discuss it.

Samson then went into a review of the movie The Hurt Locker, about bomb disposal units in Iraq. Co-host Stu Gotz cut in: “Speaking of ‘hurt,’ how many fans do you think want to hurt you?”

Samson: “First they’d have to go through John Anderson (the Marlins’ head of security). If you can get through 270 (pounds), then you can… In all seriousness, who would want to hurt me? I run a baseball team. I don’t run your country. I’m not in charge of your taxes. We try to entertain you and win some damn games. My God, let’s calm down, folks.”

Co-host Dan Le Batard reminded Samson that the Marlins are getting public money for their new ballpark.

After that came the caller who sneaked in a bad word before he could be censored. Another caller took a shot: “Hey Mr. Weasel, er, I mean Mr. Samson, have you seen the movie “Other People’s Money”?

Samson, to his credit, praised the movie without taking a shot back at the caller.

As the show winded to an end, Le Batard said: “This was a disastrous segment. This didn’t feel good at all for any of us.”

Palm Beach Post

[PANatsFan]

a) Nick missed games BECAUSE OF THE FLU. Yeah, that's specific to him.

b) The fact that he is admitting that they are trying to low-ball players and "win" on contracts is enough to scare away free agents for years to come. Anyone with any idea at all of how to speak in public would have said they are looking for fair deals that benefit the team and the player.

c) The reason that a player gets an arbitration raise that's enormous is that for the first 3 years player salaries are controlled because of the reserve clause and the anti-trust exemption, and they are seriously underpaid for those first 3 years.

[JCA-CrystalCity]

JCA, who else could they mean? The Rays?

It's really sad that Glass opened his wallet but then has Dayton Moore making the decisions.

Well, there is this from the John Henry suggests an alternative to revenue sharing thread:

over a billion dollars have been paid to seven chronically uncompetitive teams, five of whom have had baseball’s highest operating profits

Under Naimoli, I think it was a fair criticism of the DEVIL rays, but I don't think Sternberg has been pocketing money.  Their payroll jumped last year with Burrell and a few guys going to arbitration.

Marlins are the most blatant.  Pirates I think are next.  Reds?  Royals?  both are around $70m last year, but they are historically cheap.  I don't think Baltimore gets revenue sharing.  My guess is that Oakland and Minnesota are revenue sharing recipients who are competitive, historically, and would be the 2 out of the 7 henry is talking about[edit- reread the quote/ he's not talking about Mn or Oak].

[tomterp]

The Marlins have won as many WS as the Red Sox have in the last 10 years or so, so I hope he wasn't including them in his chronically underperforming short list.

[JCA-CrystalCity]

The Marlins have won as many WS as the Red Sox have in the last 10 years or so, so I hope he wasn't including them in his chronically underperforming short list.

13 seasons, I think.  how about 4th and 5th finishes?

[tomterp]

13 seasons, I think.  how about 4th and 5th finishes?

Maybe I should make it last 80 years?    

Some think that the only thing that counts is winning it all, and if you don't, it doesn't matter where you finish.

Having experienced the view from the bottom pretty consistently, I don't subscribe to that thought, but it's out there.  

[HalfSmokes]

Maybe I should make it last 80 years?    

Some think that the only thing that counts is winning it all, and if you don't, it doesn't matter where you finish.

Having experienced the view from the bottom pretty consistently, I don't subscribe to that thought, but it's out there.  

except competitive seasons put people in the seats. WS titles followed by 5th place finishes doesn't build a fan base; consistently making the playoffs does

hence



vs

[Nathan]

Ben put up a post about how this might affect the Nats over on MASN if anyone wants to bring it over here.

What the Marlins' payroll might mean to the Nats
By Ben Goessling on January 13, 2010 3:07 PM | Permalink | Comments (4)

There was an interesting wrinkle introduced to baseball's economic structure yesterday: MLB, the players' association and the Florida Marlins reached an agreement that will require the Marlins--one of the biggest beneficiaries of baseball's revenue sharing program--to increase their payroll until their new ballpark opens in 2012.

Owners of big-market clubs have become increasingly critical of teams like the Marlins, who receive big payouts from the revenue sharing program, but had a payroll of just $37 million last year. Red Sox owner John Henry suggested last month that there were seven perennial offenders, if you will. The Marlins are one of them, and it's long been suspected the Pirates are, too. If you look at Forbes' 2008 MLB operatng income rankings, the Nats are high on the list, along with modest payroll teams like the Marlins, Rays, Twins and Orioles.

It's possible the Marlins agreement sets precedent for other teams to increase payroll, though the Nats certainly have been spending this winter. Mainly, though, I want to look at another element of the ruling: The NL East already includes three teams with big payrolls (the Phillies, Mets and Braves), and though there's no indication the Marlins will be forced to bump their payroll into the nine-figure realm, they'll be less likely to part with young stars like Dan Uggla and Josh Johnson, who both stand to get big raises over the next several years. Remember, the Nats got Josh Willingham and Scott Olsen from the Marlins last fall in large part because Florida saw the two arbitration-eligible players as prime candidates to help them shed payroll.

If the Marlins have already been able to field competitive teams with minimal payrolls, they'll likely become even more dangerous with the ability to keep their young players. That will make the NL East even more competitive, and probably decrease the Nats' margin for error that much more.

It'll be interesting to see how the Nationals finish the winter--do they add another pitcher, or do they get a second baseman like Orlando Hudson or Adam Kennedy? And then there's this winter's round of arbitration hearings; that process begins later this month when teams and players start to exchange salary figures, and it should bump the salaries of Willingham and Brian Bruney. They already have $46.725 million committed for 2010 (plus a $1 million buyout to Austin Kearns), and with arbitration and other contracts for pre-arb players, the dollar figure should push into the mid 50s again. The payroll was around $60 million last year, so it would seem like there's room to add another piece and be right around the 2009 payroll, or add two with a slight bump.

But what's clear is the Marlins agreement won't cut the Nats any slack. In a division with the Phillies (two-time NL champs), Marlins, Braves (both wild-card contenders last year) and the Mets (saddled with bad contracts, but still in possession of some veteran talent), the Nats will have to be smarter and craftier to move up.

http://masnsports.com/2010/01/what-the-marlins-payroll-might.html

[KnorrForYourMoney]

Thank you, Nathan.