Are We Re-Experiencing Collusion by MLB?
Is there in fact collusion going on in MLB? With all of this backlash on the various trades, it is becoming more clear to me that if the MLBPA did not have Tony Clark as the union president, the union would clean the clock of MLB and it’s own lightweight, Rob Manfred. Boston is not hurting in revenue or operating income, and can certainly afford the salaries and resultant luxury
Is there in fact collusion going on in MLB? With all of this backlash on the various trades, it is becoming more clear to me that if the MLBPA did not have Tony Clark as the union president, the union would clean the clock of MLB and it’s own lightweight, Rob Manfred. Boston is not hurting in revenue or operating income, and can certainly afford the salaries and resultant luxury tax if they had retained both Betts and Price. But their owner, John Henry, stated that the goal was to get under the CBT threshold and reset the luxury tax clock. Why? That was also the stated goal for NYY and LAD a couple years back. Why? And the Chicago Cubs are fighting the same threshold as is Boston this year, and they want to make changes that are apparently being hampered due to salary restrictions. Why? Is there an unwritten rule amongst the owners after the 2016 CBA that teams needed to respect the threshold as a de facto salary cap? While MLB cannot mandate (a word avoided by all of the big spending teams) that they reset the tax at least once every three years, they certainly seem to get teams to adhere to it. Why? Are we seeing a version of collusion part deaux? Just exactly where is Peter Ueberroth?
NYY, LAD, Boston, Chicago Cubs, Philadelphia, SF, and NYM are not small market teams and none should be trying to back away from the luxury tax if their team is helped. No team (business) wants to pay unnecessarily a tax, but if it is an investment in winning a WS, then these teams should not shy away from exceeding the CBT threshold, even for three consecutive years. The tax should not be an impediment to investing in one’s team. If the team can afford it, go for it.
That is why I believe that MLB is an accessory to this debacle (as Mark calls it). John Henry would not be trying to trade Mookie Betts if there was not some outside pressure to get under the threshold. If he could not afford it, he would never have agreed to the excessive contracts he has already inked for David Price, JDM, Chris Sale, Xander Bogaerts, and Nathan Eovaldi. Mookie has never said that he wanted out of Boston, just that he wanted to test free agency. Henry should have kept Mookie and then told his agent to come back with the best offer and we will see what we can do. If he wanted to sign Mookie the ballplayer, he should never let the tax dissuade him, because he can afford it, UNLESS someone else is saying to do otherwise.
Since 2011, Boston’s operating income has been:
2011 – $25.4MM
2012 – $23.9MM
2013 – $25.3MM
2014 – $49.2MM
2015 – $43.2MM
2016 – $78.6MM
2017 – $86.0MM
2018 – $84.0MM
That is an eight year average of more than $50MM annually. Boston was over the threshold in 2018 and still made $84.0MM in operating income. We do not know what the 2019 operating income was, but by winning the 2018 WS, I would imagine the bottom line did not go down, even if the payroll went up (slightly).
The new CBT threshold began in 2016 and lo and behold, the operating income increased nearly 82% for Boston. Both NYY and LAD were over the threshold in 2016 and 2017, and they felt it necessary to be under the threshold in 2018, and both teams did. I do believe that the Dodgers had an extra incentive because of the debt service concerns and not knowing what MLB would do if they did not get under the threshold. But NYY had no such concerns and that was a goal of theirs as well. Now Boston’s owner says that the goal is to get under the CBT threshold to not exceed the threshold for the third consecutive year.
Doesn’t it seem odd that each of the three supposedly wealthiest teams work feverishly to get below the threshold so as not to exceed it three consecutive years, but then come back and say they will be able to go over the threshold again after they reset the penalty? Doesn’t it also seem odd that each team stated it was a goal, but they were under no MANDATE to do so? I am generally not a conspiracy theorist, but it sure seems like someone from MLB is telling them to get below, without saying it out loud. There is no way the Yankees, Red Sox, or Dodgers are worried about a tax if they believe they can win with players that exceed the threshold.
Tony Clark needs to give way to a more expert union negotiator because the MLBPA should be in a position to increase the CBT threshold exponentially, and install a salary floor, or teams need to lose their revenue sharing. I am not a fan of the DH, but it is not going away, so the MLBPA should be able to insist that the NL institute the DH for the NL beginning in 2022. Even with the larger FA contracts being let this year, there were only four that exceeded $100MM, and not one small market team was able to grab any of them. This year followed a couple of weak years. Even last year’s big money boys, Harper and Machado, settled for less than what was expected. Mike Moustakas had to take back to back single year contracts. Dallas Keuchel and Craig Kimbrel did not sign until June. Scott Boras’ clients are happy, but how many others? The players are in a good position to extract some favorable negotiations if they handle it correctly.
Sure the larger market teams will be in a better position to compete annually because of their revenues, but it is time to tell the Pirates ownership to spend or sell, and to see what the Marlins can now do under new ownership. The A’s and Rays are showing that they can contend without being big market high revenue teams. The A’s could very well beat the Astros for the AL West crown, and while NYY is the heavy favorite to win the NL East, Tampa could very easily move ahead of Boston, especially without Mookie. Toronto, Cincinnati, and Chicago White Sox are showing signs that they are ready to compete beginning in 2020. KC won a WS in 2015.
If the tax is not onerous for the owners of the larger revenue teams, then why the need to get under the threshold? This is where I believe that there is an unwritten rule telling teams that they need to adhere to the luxury tax (as close as possible) and for sure to get under it at least once every three years. MLBPA can stifle this collusion by increasing the threshold so it is not a de facto salary cap, and minimizing the penalty. If I were negotiating for the MLBPA, and I was advised that the owners want to stabilize the smaller revenue teams, I would counsel the union to advise the owners that they should do it in a way that does not impede player salaries.
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Discussion (150)
Disagree, not disagreeable
Apparently I missed the story about the Joc trade to the Angels being called off. I guess that means both Strip and Andy Pages are back with the Dodgers. So although including both Downs and Wong in the Boston deal removes two potential pieces that could be used in potential future deals, getting back Joc, Strip and Pages opens other possibilities. I’m guessing that AF isn’t done yet.
Moreno is a dbag. Funny, Stripling went on twitter and said he was happy he wasn’t being traded To Anaheim. Joc might feel differently. Of course odds are Pollock gets hurt before they get to opening day.
The Dodgers most likely will trade Joc and maybe Strip but if not, Turner and Kershaw will wrap their arms around them. I hope they wind up trading Pollock instead. They both were a great fit in Angel Land.
I know the White Sox have a thing for Joc. How about Joc, Strip and a decent prospect for Bummer. Or make a run for Hand from Cleveland and add Baez to that mix.
Jayne Cobb, any word from your Anaheim source?
To steal a line from our friends from Houston, “Im so F’ing happy we got Graterol !!!”
Losing downs we needed Rengifo. Graterol might pay big dividends in the pen. I thought all along that Boston would want a catching prospect which is our depth position. Hopefully Betts and price can put us over the top. A year from now we may be wishing we had verdugo but AF I am glad you took the risk. Signing Taylor for 2 years gives us time to get our next kike which could have been Rengifo or downs. We have lost hill, ryu, and maeda from the rotation but I like our upside better with may and Gonsolin easing in and urias getting a shot. I really wish we had completed the Angel deal. Now what? Got to do something.
Bob Nightengale says Anaheim is the one that backed out of the Joc deal.
On a side thought, look for the White Sox to come after Joc now.
Now the 40 sits at 42.
After the league screwed up Joc’s hearing it’s probably best that he’s not returning, and who knows, maybe Rengifo will prove to be a plus. And maybe including Verdugo will preclude any problems that may have arisen over his having allegedly witnessed a sexual assault in 2015.
I don’t like the Red Sox being rewarded for their shameful behavior, but the Dodgers are clearly a better team today than they were yesterday. And who knows, maybe Graterol will ultimately make the Red Sox look stupid.
Very happy we got Mookie Betts!! The steal AC’s theme, that was a very bold move! I think the price we paid was fair. If the Redsux fans think they didn’t get a enough, they can “Cry me a River” (little teaser for tomorrow’s post).
I like the trade with the Twins. I’m happy to have Raley back and I think that the 67th pick will produce a decent prospect(players drafted in that range in the past couple of years include, Pete Alonso, Bo Bichette, Mitchell White and Michael Grove. I am a huge Matt Beatty fan, but at the time Raley was traded, I actually thought he was a better prospect. I may have been in the minority, but that was my opinion.
Be interesting to hear what happened on the Angel deal and what happens next. I was getting more and more excited to see what we had in Rengifo. In any event, I think Ross Stripling’s Big Swing Podcast is going to be really interesting this week.
A real key to how good this Dodger team will become are how good Jansen and Treinen are. Yes we could use a legit co ace with Buehler for October but there aren’t a lot of deadline ace prospects out there. If you have an opportunity to pick up a top 5 player in baseball you jump at it and AF did.
1. Betts RF (R)
2. Bellinger CF (L)
3. Turner 3B (R)
4. Muncy 1B (L)
5. Pollock LF (R)
6. Seager SS (L)
7. Smith C (R)
8. Lux 2B (L)
Bench:
Barnes, Taylor, Beaty, Kike, Rios, White, Raley (only room for 5)
That lineup is a nightmare and the bench is stacked!
David Price had a 7-2 record with a 3.16 ERA through his first 17 starts, before he had to have a cyst removed on his wrist in 2019. He was 16-7 with a 3.58 ERA in 2018 and was outstanding in the World Series of 2018. He could be rejuvinated out of Boston… we shall see.
Strange that the Angel trade collapse wasn’t announced until after the other trades were finalized. I wonder if Arte was getting pissy.
MLB.com ranks Kenley as the #7 Closer in baseball. Driveline could have him go even higher.
Look for Joc to be flipped for a couple of pitching prospects.
Joc was not going to sign long-term with the Dodgers and no way they offer platoon players the QO, so he has to go and they also get under the Lux Tax. It’s trade him now, or get ZERO. It would be dumb to keep him now. If he doesn’t go to the Angels, he’s going somewhere.
Joc said he didn’t hit lefties because he did not have the opportunity. The Dodgers say he can’t hit lefties. We will find out who is right.
I like Luke Raley. Another Matt Beaty-esque player.
Rosenthal reporting no deal between Angels and Dodgers, sources have told the Athletic
I’ll never like giving up 5 years of Verdugo for 1 year of Betts. Yes I said 1 year of Betts.
I’ve never been high on Downs and Wong, so I don’t care here other than they could have been used in a better trade FOR SOMETHING WE NEED like a #2 starting pitcher to slot in behind Buehler.
Details of the Maeda trade has not fully been reported, so I’ll wait for the details. So far in my mind from depth a swap of Price over Maeda at best is a wash. and again Maeda could have been used in a trade for SOMETHING WE NEED like a #2 starting pitcher.
If the Angels trade that was discussed earlier this week happens, I will be pissed. DO NOT TRADE JOC.
Luke Raley back to the Dodgers. Per Passan.
As we celebrate today’s transactions plus the potential value of having signed Treinen, let us bow our heads in gratitude that we are not Giants fans. Their team, after doing nothing all off-season made up for it in the last 10 days by signing Pablo Sandoval, Billy Hamilton and Hunter Pence.
I now see this team as better than last years 106 win team. Question: ON PAPER, is this the best Dodger team of all time?
I like this deal better than first. Rather have Graterol over Downs and Wong has no future in LA and think he’s a career backup. Downs is blocked with us and Graterol could give us something this year. Much rather give up Downs over Gonsolin and Gray. Total win for AF and Dodgers!
The money going to Minnesota may have been there before. We don’t know. The talking heads were just leaking stuff and trying to be first. They probably didn’t have the entire deal. Basically the Dodgers kicked in some cash and bought a high draft pick from the Twins. I hope Graterol closes a World Series for us some day as big F U to Boston. I’m glad Gonsolin didn’t go. I think he could be an excellent starter with a nice bat, but also a future closer with that splitter he throws. Kenley has two years left so the Dodgers need to groom a new closer.
1st step down with the BoSox trade. All medicals have been cleared. Now just waiting for commissioners office to approve.