After the negotiations concluded today I got a number of questions about a possibility of a players' strike. What follows is probably going to be a long thread, so buckle up. Preceding a strike there would have to be a lot of internal union activity, including goal setting, 1/
member education, a vote of the leaders, and likely a vote of the membership (I haven't reviewed the MLBPA Constitution to see if the process is laid out). A vote usually only authorizes a strike at a later point - frequently determined by the leadership. You can't go 2/
into a strike without a goal. It's not just to pressure the employer. There has to be a substantive goal to achieve, otherwise you won't have the members united once it's achieved - some will consider it a waste of time/effort and lose faith in the union. You have to educate 3/
the membership on the status of negotiations, what management is doing, why your proposals are fair and reasonable and must be accepted, and what the goals of the strike are. Without solidarity, you have nothing. And, you have to have a validation of that solidarity through an 4/
authorization vote. It's both empowering of the membership and makes them take a public commitment. It also shows management solidarity of the membership. They can't cleave a divide between the union leaders and the members. They are one. Then, you use that authorization as 5/
leverage in the negotiations. Presently, a strike authorization is no leverage at all. Management has locked the players out. Withholding their labor makes no difference when the bosses are prohibiting them from labor already. But, what about if the lockout ends and spring 6/
training opens on time and the season is set to begin as scheduled? What if management concedes the lockout didn't achieve its goals and they want the players to play. Would the players then authorize a strike vote? I don't think so. At least at this point. The reason is those 7/
goals. What are they? The Union has been pretty clear in what it wants out of the new CBA-pay players earlier in their careers, end or reduce service time manipulation, eliminate team disincentives in free agency (draft pick compensation), and make tanking less attractive-more 8/
competitive teams means more competition for free agents-means higher pay. But, what happens if there is no lockout? The players continue to play under the last CBA. Those terms and conditions remain in full force and effect. They are not ideal fo the players, however they 9/
are also not ideal for management either. The owners want expanded playoffs. The status quo doesn't achieve that objective for them. The owners want a new CBT - remember the old CBT sunset at the end of the regular season. There is no CBT threshold or tax under the status quo.10/
So, if MLB ended its lockout, free agents could sign and teams would have no risk (at least immediately) of paying a tax on free agents above the prior threshold or even the Union's proposal in bargaining. In fact, no two or more teams could act in concert to reduce their 11/
salary expenditures. That would be collusion. They couldn't say, we're just all sticking with the old $210M limit or event the $214 that management has proposed. Steve Cohen could go right on signing the top free agents without any concern of penalty and any other owner who 12/
called him out would just be giving the Union more evidence for its grievance. The CBT is to reign in owner spending, nothing else. Sure the draft pick compensation scheme would continue in effect. Dumping (ahem) rebuilding teams would continue doing their thing, but at this 13/
time, a strike doesn't make sense from a leverage perspective. The offseason without a CBT is a good time to live under the old CBA. Some of the other things can be negotiated to apply retroactively, including service time credits toward arbitration next offseason. There's 14/
little risk to the Union in beginning the season on time without those new rules in effect. Even the minimum salary can be negotiated to start mid-season or even retroactively. Many unions negotiate a signing bonus for bargaining unit employees or retroactive raises paid as 15/
lump sums upon signing or within a number of pay periods thereafter. Those things can all be made up for.

The Union doesn't gain leverage in terms of timing until much later in the season. MLB's shared revenue is paid out mostly in the later part of the season and during 16/
the playoffs. That's when the bulk of the $58M/team in national TV revenue will begin to flow. Unless you're the Dodgers,* that $58 is half of the team's non-ticket revenue.

*The Dodgers local TV revenue outpaces almost all other teams by a large magnitude. 17/
The Pirates for example, earn $50M in local TV, likely spread out over the full 6 months of the regular season. They earn $58M like all others from the national TV deals. They get other shared revenue from streaming, etc. They get some from the Commissioner's small market 18/
fund. They probably get $120M+ before a single ticket is sold. They spent $55M last year on player salaries. A strike in August puts them at risk from a huge profit center to closer to a break even proposition if the playoffs are canceled. But, what about other 19/
lower* revenue teams that actually are spending to compete. If they are spending $100M or they are in their window and upped it to $130-150M, they will be at risk of major losses.

* There are no low revenue teams, only relative levels. 20/
When the Commissioner unilaterally implemented the lockout, he said (paraphrasing) it was to put pressure on the parties to get it done quicker. Then his team took a 43 day Christmas break. Hey, the uberwealthy need vacations too. That's not exactly trying to get it done 21/
quicker. But, I digress. There was no pressure on his own side. Their big pressure point is the pennant race and the playoffs. The players don't get paid until the regular season starts. No pressure on them yet either. It was a falsehood, not much different than his saying 22/
a lockout is just part of the process. No, it's a tactic that can be employed voluntarily, but is definitely not required and infrequently used by employers.

All that said, the players aren't likely to strike now. It makes no sense. They want to bank their salaries 23/
in that first 4 months of the season. They want to take the pressure off the league minimum players by letting them earn some money. They want to maximize the risk to management while reducing their own at the same time. I don't even think they would vote to authorize a 24/
strike until much later in negotiations. Why lose the fans by voting too early. Use it when you need the leverage. Sometimes a strike vote accomplishes your goal without a strike. That's what it's for. It creates pressure without using power.

An end for now.

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More from @EugeneFreedman

Dec 3, 2021
This is an insightful piece from @jaysonst about management's unwillingness to negotiate over rule changes. The problem with that stance and one of the quotes in the article is, for many of these rule changes, they have to. Frequently I refer to mandatory and permissive 1/
@jaysonst subjects of bargaining. Here's a quick refresher. Mandatory subjects have a parallel duty to bargain in good faith. They are wages, hours, and other terms and conditions of employment. Many of the rule changes would be mandatory as conditions of employment - for example the 2/
@jaysonst pitch clock. It's a pace of work issue, which is a mandatory subject no different than the pace of an assembly line. But, here's the kicker, it is permissive to waive the right to negotiate over mandatory subjects in the future. The article quotes someone saying, 3/
Read 14 tweets
Dec 3, 2021
If we told you that one of your employer's largest revenue sources was going to increase its contract by 30% next year, but your employer said that pay tables/bands would go up 1.9% and 4.7% total over 4 or 5 years would you be happy? That's basically what MLB proposed. 1/
.@BizballMaury has reported that MLB shared TV revenue will increase with new contracts by ~30% in 2022. That is shared by all of the clubs. Along with Regional Sports Networks and gate receipts, that makes the bulk of MLB revenues. Of course, the increase in TV revenue 2/
@BizballMaury will be more significant if expanded playoffs are agreed to by the parties. (They will be) Raising the CBT limit from $210M to $214M and ultimately $220 is a pittance. But, hey, it's movement, right. It's the owner's best efforts to reach agreement before they imposed a 3/
Read 5 tweets
Dec 2, 2021
The fundamental premise that he justifies throughout the letter is a lie.

There is no requirement to impose a lockout. It is a voluntary act of management. A tactic. It is classified as economic warfare. Expiration of a CBA does not force management to lock out employees. In 1/
fact, The National Labor Relations Act, promotes labor peace by preserving the continuity of mandatory terms and conditions of employment of an expired CBA until a new CBA is put in place.

A lockout is a leverage tactic; it is economic warfare to pressure employees to accept 2/
management's proposals in bargaining. A lockout (or a strike for that matter) does not terminate the parties' duty to bargain. They must continue to bargain in good faith.

Ultimately, the parties will reach an agreement. But, don't believe the "we were forced to rhetoric." 3/
Read 4 tweets
Dec 1, 2021
This is good coverage for a number of reasons. 1) it explains that management would be the one responsible for a lockout. 2) it explains a lockout isn't required b/c of expiration of the CBA. 3) it explains the process in more detail - bargaining followed by caucuses, 1/
followed by more meetings, followed by a sidebar among principals. This is generally how positional bargaining takes place - with more arguing and discussion in caucus than at the table. For interested based bargaining the parties work the issues jointly at the table. These 2/
parties are not there. I suspect that the sidebar principal meetings are where most of the real negotiating takes place, because they can build up trust in the smaller face-to-face, rather than having to posture for their constituencies. 4) Neither party leaked any details 3/
Read 5 tweets
Nov 30, 2021
Ultimately, I would not be surprised to see some form of expanded playoffs in the new CBA. @JesseRogersESPN points out in his article that "the expanded playoffs would be a windfall for owners in terms of television and gate revenue." That said, it's part of an overall 1/
@JesseRogersESPN proposal that includes reducing the Competitive Balance Tax limit and increasing the tax rates and delaying free agency for a lot of players until age 29 1/2. I've addressed those before as unserious proposals. But, I've also addressed the expanded playoffs back in February. 2/
Yes. That was when the parties were negotiating procedures for the 2021 season. 3/
Read 9 tweets
Nov 29, 2021
I'm becoming more convinced that a lockout is less about whipsawing the players who aren't under contract and can't sign as much as it is to freeze the teams from spending before a new Competitive Balance Tax can be put in effect. The first aspect has been somewhat undermined 1/
by so many early singings this off-season. But, the second has also been undermined as well. Steve Cohen is acting as if there is no CBT. He should be doing that given his wealth, the revenues from the NY market, and the 30% increase in national TV shared revenue. The Dodgers 2/
have been doing this for several years now. The late Boss used to do the same. His son Hal, though is a different animal. He's not competitive as he is protecting his nest egg. That's why he's on the bargaining team. George used to rant against using shared revenues from 3/
Read 8 tweets

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