Recently REAL SPORTS, the only sports I watch, rebroadcast a feature involving American’s minor league baseball system and it could bring tears to your eyes unless you’re wearing face makeup for your favorite team. With the start of this year’s season in April, statistics showed that there is no min pay or max pay but a fixed salary that includes zero overtime, no allowances for public appearances or personal pay. While the MLBers started the season with a minimum pay of $545,000, their MiLB brothers may never see any percentage of that.
While there is the “promise” of high pay, it is not translating into true turnover in the system transitioning to more players moving up and staying. A main reason for this is that there are so few slots on all MLB rosters to take in all the college and high school players who can “do the job” of promoting from the low end of the spectrum. Current numbers show that at most there are 1200 MLB players suited up at various times during the season. This of course is no different than with the other pro sports leagues.
VERY MINOR
MINOR LEAGUE PAY
VERY MINOR
Though there is currently a class action lawsuit– begun in 2014 by a former player - aimed at raising the wages for players, statistics (from players) show that the starting salary is $13200 per year. While a fact sheet from the MLB states that the min is $15600 going up to $120,000 with included signing bonuses in varying ranges. As is obvious, this is barely min wage and does not include travel and housing expenses.
And while this is all going on, the Congress did an end-around with the “Save America’s Pastime” Act (HR 5580). This was lobbied for by the MLB and Congress complied, though there is no record of passage. The interesting irony is that this year the MLB crossed $10B in revenues while raising the minimum salary of all minor leaguers would cost LESS than one large contract for ONE player.
Many players gladly take this pay in the hopes that they can get to the big show for just two years which can lead to marketing deals, paid travel and a million in salary. Many fans are as much in favor of the status quo as the MLB while demanding their particular job is more than minimum wage. And the expense of playing in these “farm leagues” is greater than anyone would want to pay.
Six Minor League teams are set to play in new ballparks in 2021, the most in a single season since seven made their debut in 2005. Four of these 2021 openings -- Kannapolis, Wichita, Fredericksburg and Rocket City -- were originally set for 2020, but the cancellation of the season made this an obvious impossibility. Two more -- Worcester and Beloit -- are now poised to join that mix. All six of these teams have rebranded (or will rebrand) in conjunction with the move to their new home.
NOT UNDER CONTRACT
A CONTRACTOR
NOT UNDER CONTRACT
And now that the GOP slipped a provision into a recently signed omnibus bill, these players have an even harder road to haul as they are now to be exempt from minimum wage laws which saves the MLB a few million dollars while putting a whole class of hopefuls into an underclass that must be at their best while making what pro cheerleaders are making.
Also, though they are supported by the Player’s Association, they are not under any contract so they can be released at any time with no expectation of back pay or even support in maintaining a lifestyle all should have. There are of course funds allocated all players including a $25 per diem and meals. Some do receive signing bonuses but we always run into the issue of available spots.
Forbes reports that MLB pays out up to 56% of revenues (currently ~$12B) towards the various salaries which almost equals a 44% margin each year. Many companies would love to have margins like that. In addition each minor league team must pay the MLB $20M each year. The fight for minimum wage is rather complex because of pay structures.
Does the phenom get the same overtime pay as the SingleA player? What activities would then qualify? As a software contractor we are not paid for travel but do receive a meal allowance. But the pay tends to dwarf the average and has limited hours.
For more than 100 years, minor league baseball associations collectively bargained to protect their clubs from having players poached by National League and American League teams; in 1903, a deal known as the Professional Baseball Agreement was reached. As a result, all leagues would recognize each other’s contracts, and structures were put in place for teams to buy the contracts of players to move up the professional baseball ladder.
By the mid 20th century, MLB clubs began purchasing their own minor league clubs and negotiating deals with other clubs, leading to the modern farm system where young players would build their skills for major league teams.
Most of those dealings hinge on MLB’s effective antitrust exemption, which originated in the 1922 landmark U.S. Supreme Court case, Federal Baseball Club v. National League. In that case, the court decided that baseball games are not subject to federal antitrust laws as they’re solely matters of the states those games are played in — that, despite the fact that NL and AL teams frequently crossed state lines for games, the travel and transportation is “a mere incident, not the essential thing,” according to the majority opinion authored by Justice Oliver Wendell Holmes.
WATCH YOUR FEET
PART TIME WORK
WATCH YOUR FEET
MLB has multiple advantages over other sports because it is not as high impact as the NBA or as rough as the NFL or NHL. The MLB does provide insurance coverage based on time as a player. They also pay 100% of health care and up to 75% of dependent health care so it’s not totally bleak though cash is still king, especially for parents.
But still, no one is given a full pension for two or three years. We have yet to see data on the payouts and durations for each year recorded. So if a player is hurt beyond the ability to continue they are left with a need for a sufficient Plan B as even the highest salaried players must live close to 30 years after their career ends. Each year the MLB signs approximately 2000 players to contracts. But there are only 1300 or so slots for all pro teams. This leads to a dearth of available positions.
HIGH TURNOVER - LESS MOVING ON UP
All of these complexities lead in the end to lots of turnover. Because they are not expecting most players to become pros and stay in the league for more than 5 years. These players are not looked at as long-term investments as if they don’t make it to “the show” the investment will never pay off. MLB feels that what they contribute is enough even though drafted players are often under the poverty wage.
Interestingly enough, the amount they pay for lobbying would cover most of the cost of paying a living wage. OpenSecrets.org reports that lobbying expenses were as high as $1.3M over two years. It could be coincidence that the exemption was created when lobbying money increased but our Congress is supposed to ensure that companies that receive any subsidies will pay a fair wage to taxpayers.
Realistically, the minor leagues are somewhat a way to lower expenses. Why sign the latest phenom to a high-paying contract when he can be put into the minors for a lot less money? This isn’t particularly a bad thing in that the teams do need to turn a profit but they are getting subsidies.
MAYBE EVEN C
PLAN B REQUIRED
MAYBE EVEN C
With all of these complexities it becomes clear that though SOME will make a living as an MLBer, most will never make more than a paramedic or a teacher. And those positions can be maintained through a person’s 40s and beyond. So ALWAYS have a Plan B.
Even engineers and stock brokers need to expand their abilities to respond to changing times and industries. Americans spend millions of hours and billions of dollars on the various pro sports each year while the average child is under-educated and close to poverty.Those who follow these “dreams” more than likely will end up making less over a lifetime as a person who acquires a simple certification for welding or network administration. Even data entry operators can build towards a steadily increasing salary beyond 40.
This is not to say that sports are pretty much a waste – well, yes, that is the point. The same situation is a constant throughout all professional sports leagues, so always believe in less over a longer period. Just for MLB, attendance has been recorded at 114M while the MiLB counts 41M paid tickets. This equals a lot of wasted hours and money just to waste more making up for it. Sports entertainment does have its place but not as the high-paid crown jewel of high school achievement. We have teachers who need to purchase their own supplies to attempt to train the future engineers, doctors and even skilled laborers. We have a greater need for regular workers than celebrity athletes no matter their moral standing or contributions.
There isn’t enough money in all sports to dent income inequality while actually supporting it. Middle income workers shouldn’t be spending 100s of dollars on jerseys and sneakers when certifications are fast and easy. But again it goes back to early direction. No child is destined for a sports career, some just make it. And a very small percentage at that when we consider that counting all pro team sports one nice sized stadium or 10 story office can fit all the current players. And perhaps their families. Of course this is all a factor of the lazy rich who want something for nothing and a few hundred million dollars to go with it.
They will continue to push the “game” to any who buy it whether it’s good for them or not. It isn’t. It’s up to us to train our kids for that second career. To establish a level of discipline that is supported by us. Flexibility goes beyond athletics and to the ability to adapt to your surroundings. Even training technology has improved over the years with electronic heart monitors and advanced protective gear.Someone needs to make and maintain these things. Maybe your kid won’t be famous but they probably won’t be anyway.
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