Milb can't afford to pay players minimum wage

A recent Law Review article on the issue.

 

http://poseidon01.ssrn.com/del...p;EXT=pdf&TYPE=1

MiLB / MLB licensee here - we do not do any player name & # for MiLB players. Players move levels too quickly and the team buyers generally do not want to risk having dead inventory. Not saying it never happens, but very infrequently. MLB players receive a % of all product co-licensed w/ MLBPA only. The players do not receive anything (directly) when you buy a Yankees cap. The royalties generated off of team product are put into a pool and split evenly between all 30 teams - another part of revenue sharing. Player name & # jerseys and tees have a royalty % that goes to the MLB teams, and a separate royalty that goes to the MLBPA for the rights to the player. Just because Trout or Pujols sells more jerseys than Ianetta, they don't personally get more money. Its all pooled for the collective group. 

 

Very common misconception. Folks think buying a Yankees cap makes the rich, richer. The reality is that the Marlins get just as much out of that purchase as the Steinbrenner's do, and the players really get nothing (though it can be argued that the royalties generated off of team merchandise sales boost the team revenue, allowing them to sign players to bigger contracts). 

Professional baseball has hired a lobbyist to make sure that baseball is exempt from minimum wage laws. http://www.bna.com/minor-leagues-turn-n17179923261/

I love this quote:

 

"It’s not a factory job,” Yund said, arguing that players should be paid only for actual game time. “What they’re doing is an adventure, which could turn into a lucrative career.”

 

 They really do need a PR person.   All the work these guys put in off season and on that's not a part of an actual game should go entirely uncompensated because "it's an adventure."  

 

The real problem with baseball is the combination of exemption from fair wage and labor law with anti-trust exemption.  Players have ZERO labor mobility.   Add lack of labor mobility because of anti-trust together with exemption from fair wage laws and you've got a pretty ugly labor situation.  Not quite slavery -- cause they can always quit  -- and not quite old style contract labor -- cause again, they can quit -- but something in that direction.  

 

Of course, they can also work in the offseason:

 

MLB also said major league clubs paid out $224 million in signing bonuses to first-year players last year, and noted that minor leaguers are free to take offseason jobs.

 

 

But doing that means they are less prepared for the season of course and so less likely to turn their mere "adventure" into an actual "lucrative career."

 

It's pretty clear these guys need the right to collectively bargain.  I don't see how in good conscience the law can give their employers cartel rights (i.e. anti-trust exemption)  while simultaneously  exempting them from fair wage laws, and then just leave them to the mercy of the now greatly distorted labor "market."   

 

 

I agree.  It is really unbelievable that this labor group is represented by a union that actually has a conflict of interest in representing them and they have no real say.

 

The Anti Trust exemption should be discontinued - and MilB players should have their own union or at a minimum be tied to a club for no more than 2 years before being able to negotiate again.  Probably need to make an rider on that for drafted bonus players that get a bonus greater than $500k or so.

Jake hernandez's paycheck:

 

http://www.cbssports.com/mlb/e...hoto-of-075-paycheck

Bad move, Jake.

There is a picture of Jake Hernandez with A-Roid.  I just wish A-roid would have received the $0.75 check. 

I have seen a minimum of 7 jobs posted for Athletic Trainers at colleges in the last couple of weeks. $10-18k per year for full-time work. Masters required. College experience required. 

I know Jake personally as he was my son's teammate at SC and he's just one of the minor league players that I think about and their situation that this issue of minimum wage is about.  They're under a long term contract with no control and are being taken advantage of.

Somebody in accounting has some 'splainin to do. Should have been able to find some way to deduct those last 75 cents. The team can't stay in business if all they do is give away money to farm hands.

S,
That was funny.

However I am not sure the organization really gonna like the situation about posting the check.  They are the Yankees.
Sometimes its better to stop and think before turning to social media.

It would interesting to find out what the top level pay is for trainers?  If $18k is just a stepping stone to a much larger potential than I could understand. 

Lower level trainers in mlb make very little money. I cant tell you how little but I am willing to bet its not much. And these guys work very hard, endless hours of taking care of 25+players as well as other duties. And yes they too are hoping their efforts will be rewarded. Most use the experience and move on. And this job most likely requires a degree and hours of classes to improve.

As far as I know they havent sued mlb for more money.

Next come the clubbies who get paid nothing by teams directly but hope to someday reach a ML clubhouse where they can make big bucks. They live on a portion of clubhouse dues and tips.

 

And many actually live in the clubhouse because they cant afford to pay rent.

My cousin was offered a job as a trainer with an A level team out of college. He said the pay was absurdly low. Something like 5k in 1979. He had been a student trainer at the D1 he attended. He headed for med school instead.

I believe that when my friend left the Angels organization he had gotten as high as AA as their Athletic Trainer. Believe he said he was making about $35k and had been in the organization for 9 years.

 

College ATs simply don't make much money unless you're the Head Athletic Trainer or fairly high up the ranks at a major BCS school. One of the best-paying jobs in Athletic Training is at the high school level in Texas. That's why, after completion of my masters degree, I packed up and moved to Dallas. 

The guys who make the money are the rehab trainers.

Dave has a friend here who was a trainer with the cardinals, he actually  started a gym for kids kind of thing with parties, etc. That's his full time job now.

My point is that its not just the players, most people including the managers do not make a lot of money in milb.

It's really a wide range as it depends a lot on one's clientele.

 

Take a look:

Personal Trainer Salaries

SO WRONG!

 

http://athletictrainers.org/ab...t-athletic-trainers/

A personal trainer and an athletic trainer are not the same.  

In yet another sign of the clear conflict of interest between the players union and players not on the forty man roster, players union head Tony Clark saw no problem with the Mets off season conditioning program which required players to pay to work out at the Mets complex. Of course the players on the forty man roster can afford to pay - but players without the benefit of a banked bonus, well-off parents, or a lottery win, could not afford the program. 

 

http://www.usatoday.com/story/...r-workouts/24610919/

 

http://ftw.usatoday.com/2015/0...rs-lawsuit-mlb-mlbpa

 

Pay the minimum wage, players could perhaps afford to participate.

 

As an aside, I see that the bonus pool increased over 8% this year but minor league wages, as far as I can see, weren't even increased to cover inflation.

Just an update and analysis of the two lawsuits asserting wage and labor issues on behalf of MILB players.

 

http://www.thelegalintelligenc...eturn=20150602110425

MILB cant afford to pay minimum wage

Here's the answer: Pay them $15 per hour.

 

Then charge them for:

- instruction/coaching

- medical services and physical therapy

- dugout food and drinks

- travel cost

- uniforms

- hotels and food

- venue costs and umpire fees

I don't work in the baseball industry and I don't pay for expenses when I travel or that are required to do my job.  The company picks up travel costs, hotels and food.  Also picks up costs for any special training.  Also picks up cost for event venues and expert/consultant fees.  Also pays for food when I have a lunch meeting.  As they should since the company keeps the profits from my work.  I do not work for an extraordinary company, it's like most any other company in America, and every other company I've worked for in the last 30 years.  And get this - I'm paid a fair competitive wage.  I am not a union guy, just the beneficiary of a free market.  MLB better get with it or they'll risk losing their anti-trust exemption and really have to pay up.

The way I see it, at any given time in season there are approx 6000 playing ball who have their transportation paid for as well as hotels and some meal money, uniforms, healthcare, special training as well and provides meals at a low cost while working.  Not that its such a great amount but does your company employ that many at one time.  Let's not forget managers, coaches and trainers as well, that might be an additional 1000  personell.

 

I agree its time to raise the wages but has anyone stopped to think what all of this costs?

VERY VERY rough math. If each of those 6000  got $15,000 extra a year (that would bring them to roughly 21k-22k a year ($1100 x 6 month). that would be 90 million. which is a huge number but if broken down by 30 teams that is only 3 million a team. Again, from outside looking in, I would think MLB ownership could afford that

Who pays for the rest mentioned? How much does one think it takes to run a team for 5 months?

Maybe I just don't know, but aren't those things already paid for by MLB / MiLB clubs?  I was just thinking of additional expenses the clubs would incur

So an entry level rookie should get as much as a AAA player who has been there for let's say 5 seasons?  AlsoI was guesstimating, some teams carry more as they are on the DL. Some teams have more milb teams than others.

Do you think that every team could afford it?  

Just not sure there is an easy solution.  Maybe because son has been there I understand why not more than why.

As far as the lawsuits, these guys knew exactly what it entailed before they signed, or maybe they didn't. 

Its just not as simple as it sounds.

Oh I agree not simple. And you are right about higher up ladder more money. Maybe I am wet behind the ears but I do think MLB clubs can afford $3 million extra. However that is divvied up.

 

I do know if my son ever gets the chance after college, he would jump on it and we would help as necessary, just like we do with any of our kids dreams. So even if the pay was $1100 a month for 6 months only and he had to live in mediocre conditions,  work in off season as well as do what he needs to do to prepare for season etc, like is current. He / we would make that work for him.

 

I know that I am outside looking in.

 

They dont live in mediocre conditions..trust me.  They may have to live with a few more to make it affordable but its never bad. They spend very little time at home, probably more time in the gym..lol. 
Most teams make arrangements for their players on housing. For example they have furnished apts and have lower rents than you and I would. You will also find that college guys will live together, and since they have already done that for 3-4 years its all good. 
The big problem is not in season but off season. College guys tend to find decent part time jobs or give lessons to make money. College guys have wives that work and can help support.  Yes I admit having a wife with kids is pretty hard to support on milb salary , but that isnt about our kids, so dont worry about it.  If they are meant to make a ml team they will make it work.
Thats why you go to college first unless someone is going to give your HS player a lot of money.
While a raise could be needed , paying someone 15k for 5 months (3000 a month) with no education is more than college grads  might earn.
JMO

One other thing..look at it this way. Milb is not HS a d not college ball. For most, you have to learn a lot which takes time. The more skills and talents you have the less time you will spend in the system being educated.
So what job gives you a salary and teaches you at the same time with minimal education?

all good points. that is the beauty of HSBBW, always learning by those who have lived it

The law is the law. Nothing else matters. EVERY business needs to comply with the law. 

 

Here we have a $9 BILLION business, which has a court legislated anti-trust exemption that permits it to set wages, restrict employee movement, bind their players for years without paying them for work required by the contract. Why isn't that advantage sufficient? But to pay only $4 per hour is a simple violation of the law - unless an exemption applies.

 

Making players pay for services which the law requires employers to pay AND then not allowing the players to seek an alternate in THEIR PROFESSION is a classic example of what happens when avarice meets opportunity.

 

Moreover, because the clubs don't pay minimum wage, not surprisingly decisions are made which adversely impact the ability of the players to maximize performance. One clear example is the "99 mile rule." Under this rule, one club located closer than 99 miles from the other club (as the crow flies) has the option of commuting to each game. Doesn't matter if the actual drive is 150 miles or more. Because the club has no player wage costs to conside and instead would need to pay hotel and per diem, the players often spend three hours getting to a game, five hours at the park, and three hours commuting back - for the entire series. The team gets pretty raggetty after such a series.

 

Anyway, my post up above was only to update the status of the lawsuits. If the players win, a nice check will be the reward for those currently playing or recently retired, and an increase to minimum wage going forward.

 

As an aside, there can be a difference between skills and education. Every player who is playing at the professional level has unique and highly developed skills. Education and educational level are irrelevant to those skills. In fact, there are rightly 6,000 pro players playing in the U.S. system. The clubs are trying to take those skills and further develop them to MLB level - but to imply that the skills low level MILB guys bring to the job are akin to the skills a HS kid working for Burger King brings is a stretch. Oh, and the kid working for Burger King is getting minimum wage For not spitting into the food.

 

 

Can you post a link to the MILB team financials so we can see if they have that kind of money laying around?

 

Here's the math on what really happens when you go artificially raising wages.  If you double the wages, you must fire half the people.

 

Do you really want less players to have a chance at their dream to be in the Show?

I am curious as to where that is and what teams. In all of the years son was in milb never heard of that once.  I think the only time was playing in jupiter and having to go to port st lucie.
All teams are not created equal..some treat players well others not.
Mine played for the Cardinals and Tigers. Class acts for sure.

 

FWIW sounds like college. Traveling across the state to play a weekday game..home early am and then class the next day.

 

Sometimes you got to kiss a lot of frogs to get a prince, pay your dues. No one ever said it was easy.  

Bus trips in the Texas league 14 or 15 hours a clip. Son survived.

Let's see if I get this right. If a company's costs increase, they are exempt from paying what the law says?

 

I think I understand that you disagree with ANY minimum wage set by law. And that is a fair position. I assume that the desire is for the free market to work rather then a cost set by a government. Again, a very fair position. But, you can't have it both ways. You can't have a protection given by the government which serves to distort the free market (distorting both revenues and costs) AND at the same time rail against government mandated protections (Attempting to set a minimum wage).

 

What a different wage world it would be if players could move from one team to another at the end of a season (as TPM pointed out teams treat their players differently). Is there any doubt that the teams which pay more would get their pick of the payers? Wonder what would happen in that free market world. 

 

But can you please explain why this business is different from all other businesses in the U.S.? 

 

Also, the artificial construct of "doubling wages causes half the employees to be fire"  is unsupported by evidence. There are so many variables to consider that such a simplistic conclusion is not possible. Yes, all other things being equal, increasing a cost decreases profits. But such a conclusion could be made for increases of any cost factor (water, electricity, insurance, etc.). In the case of MILB wages, those wages have not risen in line with inflation (when the wages were first set, those wages were at roughly minimum wage), yet the revenue side of the equation (from MLB perspective and MLB pays the MILB players) has gone up way more. Twenty years ago, what were ticket prices, beer prices, parking prices, etc.? What has happened is that revenues have sky rocketed but wages have been artificially depressed. Either let the free market work or pay what our elected officials have mandated.

Midwest league

Sultan, can't provide that. Just fly by the seat of my pants . As far as  costs I guess just eyeballing it from the outside. Expecting what is expected for a salary of $1100 a month only when games are being played seems like the clubs are getting a great deal. But I know it is complicated. I realize that the clubs, also, have costs such as meal money, hotels, travel, trainers and whatever else I am missing. I know that is the cost of dong business and I relate that sort of to the benefit package my company pays for me.  I do get my hotel bill paid for if I travel, I get mileage money. I get my food paid for. Those are on top of the benefit package I get because they are the cost of me working for my company

 

Goosegg,

My son is doing just that traveling back and forth almost very day (probably 9 of 10 games) with summer ball team. you are right, it is hard on him.

 

I guess my question for all involved is: what hours should be paid? Are you thinking they should be on hourly vs salary?  I am on salary, I get paid the same amount every week no matter how many hours I work. Some weeks in is 45, some 60, every once in a great while it is 38. That is what is happening with baseball as well as I understand it, during the season. You get a set wage and have to do what is required. TPM said it well above, it is the offseason that is tough. Especially spring training where , from what I have read on here, they do not get paid.  Am I understanding this correctly?

If forced down this path, what the teams should do is to stop paying players at all.  They should become travel teams and make the players pay to join.