Tag Archives: MLB

On good faith

Murray, Ohtani and baseball’s fugitive slave act

The news that the Oakland Athletics have the option of tipping the scales their way in the pursuit of two-sport star Kyler Murray, has shone a spotlight on MLB’s labor policies, and it’s not a pretty picture.

The current collective bargaining agreement between MLB and its players union deals a huge blow to the ability of amateur athletes to get market value for their services.

These rules limited Murray to a minor league contract and a fixed limit on the size of his signing bonus based on his draft slot — he was taken ninth overall. Unfortunately, Murray’s ascension as a pro football prospect have given him leverage he didn’t have when he agreed to the A’s deal.

Because both parties negotiated their original deal in good faith, the A’s are within their rights to put more money on the table.

Let’s talk about good faith for a second.

Shohei Ohtani, who was not an amateur like Murray, but an established professional and former MVP in Japan’s Pacific League, the world’s third-best after MLB’s two circuits, was told, “Sorry. But our rules say you’re an amateur.”

They might have added, “That’s because we can write our rules to say you’re an amateur. We have to do that because our owners are otherwise too irresponsible–they can’t help themselves from paying market value for amateur players and thus need to be coerced into exploiting our monopoly and depriving you of your rights. Got it?”

So instead of maybe $150 million as a 22-year-old when teams were allowed to exceed spending limits on international professional “amateurs” or waiting until 2020 and becoming a 25-year-old free agent — in MLB’s eyes — Ohtani signed a standard minor league contract with a signing bonus of around $3.5 million.

It’s too bad Ohtani wasn’t a football player. He could have had his agent enter him in the NFL draft, and then he would have been eligible to renegotiate, or perhaps not. MLB takes a harsh view of teams trying to woo players by making up the difference between their real market value and MLB’s soviet-style planned economy price.

Of course, Ohtani could have said — after signing — that he wanted to go home to play in Japan. That he got homesick. It happens. People understand. Perhaps the Angels and MLB would understand that $150 million would make him less homesick, perhaps not.

Ohtani, however, couldn’t threaten to return to NPB, because his old outfit has signed on to baseball’s version of America’s Fugitive Slave Act, which says no NPB team could then hire him — effectively putting him out of work. Take our rules or go wash dishes.

This wouldn’t be a problem if baseball adopted a more liberal system. You sign a player for as many years as you want to commit to him and pay him what you have to. When that period expires he’s free to go. If he wants to leave in the meantime, you can name your price or refuse. It’s essentially a free market. Unfortunately, professional baseball is ideologically opposed to free markets in any shape or form — except in its belief that its less-skilled employees such as minor leaguers and entry-level staff be paid as little as possible.

So the A’s and Murray, like the Angels and Ohtani, were all dealing in good faith. But when will MLB start doing that?

4 years after shafting NPB, MLB ready for another posting system plunge

OK. So while we’ve all expected Shohei Otani to move to the majors at the end of this year, Major League Baseball may be in the process of wrecking that prospect.

Four years after MLB last took Nippon Professional Baseball teams to the cleaners ahead of Masahiro Tanaka’s posting, MLB is looking to renegotiate its sweetheart posting deal with NPB, a source told Kyodo News this week.

In the winter of 2013, just days prior to the anticipated posting of Tanaka, currently the ace of the New York Yankees, the Rakuten Eagles’ expected posting wind fall went from a possible $100 million to $20 million as the Yomiuri Giants and SoftBank Hawks pressured other NPB clubs to agree to a new deal that was friendlier to MLB. And now MLB is at it again.

Small-market MLB teams had been unhappy with the pre-2013 deal that saw the winners of closed bids pay in the area of $50 million for the exclusive negotiating rights to Daisuke Matsuzaka and Yu Darvish. Because money paid to NPB teams in posting fees don’t count against MLB’s luxury tax, it was a tax dodge for clubs willing to break the bank for overseas talent.




The current system allows every team to negotiate with a posted player provided it is willing to pay the posting fee demanded by his NPB team up to a maximum of $20 million. This drives down the amount that rich clubs can shelter from the luxury tax but does nothing to make high-value foreign talent more accessible to small-market teams since posted players are now able to sign with the highest bidder.

Four years after the Giants and Hawks conspired with MLB to get NPB to agree to a lousy posting system for Japan’s other teams, they can again be counted on to ram another lousy deal down their fellow owners’ throats just in time, perhaps, to prevent the most interesting baseball player in the world, Otani, from leaving NPB.

MLB’s new collective bargaining agreement prevents a bidding war this year for the 23-year-old slugging ace pitcher by treating him as an amateur until he’s 25. Otani is still in Japan as arguably the country’s best pitcher and its best hitter BECAUSE the Nippon Ham Fighters agreed to post him when he is ready. Manager Hideki Kuriyama told a press conference in Tokyo last winter that his plan was to give Otani a shortcut to the majors.

At last year’s winter meetings outside Washington, an MLB executive said that while Cuban pros rather than Otani were the reason for the new CBA. The CBA reduces his posting payday from somewhere in the $200 million-to-$300 million range to something in the area of a maximum of $10.5 million.




Otani had wanted to sign directly with a major league team as an amateur, but didn’t, and one gets the impression that MLB is not happy about that. By closing the opportunity of teams like Nippon Ham to offer another superstar a similar shortcut, MLB is hoping that more amateurs skip NPB altogether, sign for small amounts on standard seven-year minor league deals — and demolishing the posting system is one way toward that end.

Of course, since the advent of the new CBA, some American writers have speculated that an exemption might be in the works to ensure Otani comes, since MLB does want him to come, MLB might actually want to sweeten the posting fee for players it considers amateurs, although that seems highly unlikely.