Major League Baseball (MLB) has been at the forefront of news in recent months regarding the ongoing negotiations between players and team owners. In March, a prorated salary agreement was reached between the two sides, but what does that mean for the upcoming baseball season?
The MLB Players Association and the league`s owners had been in contentious discussions over player salaries in the wake of the COVID-19 pandemic. With the season delayed and potentially shortened, there was uncertainty about how players would be compensated. The players argued that they should receive their full salaries based on the number of games played, while the owners contended that they should receive a prorated salary, or a percentage of their full salary based on the number of games played.
On March 26th, the two sides finally came to an agreement. The players would receive a prorated salary based on the number of games played, and they would also receive a lump sum of $170 million – to be divided among them – if the season were to be canceled.
What does this mean for the upcoming baseball season? If a season is played, players will receive a prorated salary based on the number of games played. For example, if a player`s full salary is $10 million and the season consists of 81 games (half of a regular season), they will receive $5 million. However, if the season is canceled, players will receive a share of the $170 million payout to help offset their lost salaries.
The proration of player salaries has been a contentious issue in other professional sports leagues as well. The National Basketball Association (NBA) and National Hockey League (NHL) have also negotiated prorated salaries with their players in the wake of the pandemic.
In conclusion, the MLB prorated salary agreement reached in March has provided much-needed certainty for both players and team owners. If a season is played, players will receive a percentage of their full salary based on the number of games played. If the season is canceled, players will receive a share of a $170 million payout. This agreement will allow baseball to continue, albeit in a modified form, while still providing fair compensation for the players.