Payroll and Free Agency in MLB

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MLB Free Agency Effects 1

Free agency’s effect on contracts, salary payroll, and competitiveness in major league baseball

Jesse astleman

!M"#$ !enior %&esis ''

(rofessor )astasi

April *$, +$1$



MLB Free Agency Effects +

Chapter 1INTRODUCTION

Major League Baseball MLB- is per&aps t&e most commerciali.ed sport in t&e

/nited !tates today0 !ince t&eir transition from a reserve clause to free agency, MLB &as

seen continuous revenue gro t& t&roug& product purc&asing and gate receipts, &ic& in

turn affords organi.ations to distribute t&ose funds by paying t&eir or2ers, professional

baseball players, large sums of money &ile continuing to ma2e profits every year due to

t&e sport’s popularity and t&e consumer’s illingness to support its business Le is,

+$$3-0

%&ere are t&ree main factors t&at determine &o muc& major league baseball

players can be paid4 big name players produce millions in revenue for sports team

o ners, contract restraints on younger, ine5perienced players, and t&e fact t&at bot&

o ners and fans are illing to spend money to build and support t&e product Euston,

+$$6-0 %&is flo ing stream of money bet een spectators and t&e o ners &o rite t&e

payc&ec2s provides sufficient funding for justifying astronomically &ig& player salaries,

as t&ese recogni.able names, faces, and numbers ultimately control fan attraction and

local revenue Moreland, +$$+-0

Findings by researc&ers suc& as Le is, Euston, and Moreland on MLB payroll

&istory, free agency, t&e components of a MLB contract, and variable correlation it&in

t&e business professional baseball provide insig&t to t&e e5istence and practice of MLB

player contracts today0 E5amining members of 7eneration 8’s t&oug&ts on aspects of t&e

current state of MLB economics it&in t&e conte5t of a current national deficit, &o ever,

could provide insig&t as to &o t&ese future sport managers plan on impacting MLB’s

salary structure0



MLB Free Agency Effects *

(roblem !tatement

%&e purpose of t&is study is to e5amine attitudes to ard major league baseball

players’ salaries and t&eir effects on organi.ational payroll, success, and attendance

it&in t&e /nited !tates economy0

9perational :efinitions

• Free Agent ; a professional at&lete &o is not under contract and is free to auction

off &is or &er services and sign a contract it& t&e team t&at offers t&e most

money

• <eserve lause ; a clause formerly included in t&e contract of a professional

at&lete t&at allo ed t&e automatic e5tension of t&e contract for a year beyond its

e5piration, t&us binding t&e player to t&e organi.ation until release, retirement, or

a trade= abolis&ment in 1#6> led to t&e free agency era

• ollective Bargaining ; t&e process by &ic& ages, &ours, rules, and or2ing

conditions are negotiated and agreed upon by a union it& an employer for all t&e

employees collectively &om it represents

• Marginal <evenue (roduct ; t&e process by &ic& ages, &ours, rules, and

or2ing conditions are negotiated and agreed upon by a union it& an employer

for all t&e employees collectively &om it represents

• :ra ing ard ? an often old or as&ed;up player contracted in order to boost

attendance and merc&andise sales solely based on name recognition= used to

generate interest despite performance or d indling talent



MLB Free Agency Effects "

Assumptions

'n t&is study, t&e follo ing assumptions are to be made4

• All surveys and corresponding results are based on attitudes to ard Major League

Baseball0

• All of t&ose &o participate t&e survey are assumed to be college students0

• %&ese college students are from t&e )ort& !&ore, MA area, &o ever t&is sample

represents t&e /nited !tates population0

:elimitations

%&e conte5t of t&is study must be narro ed in order to target a specific

population0 'mposed upon t&is study are certain delimitations on t&e purpose of defining

t&e study’s scope for proper analysis0

• My survey ill be sent out to college students, specifically t&ose &ose majors

are or are similar to sport management, in t&e )ort& !&ore, MA area only0

• %&e survey ill consist of nine relevant @uestions, &ic& ill be formulated from

information gat&ered it&in my revie of literature0

Limitations

!&ortcomings and influences t&at cannot be controlled consist of t&e study’s

limitations0 Along it& t&e former, a number of limitations t&at &ave manifested as a

result of delimitations imposed on t&is study create barriers on t&e sample representative

of t&e population as a &ole0



MLB Free Agency Effects >

• %&e survey focuses e5clusively on college students, as it is possible t&at no ot&er

age group or generation can be represented it&in t&e sample, barring outliers

it&in t&e data0

• %&e survey can consist of a ma5imum ten @uestions on !urvey Mon2ey

&ttp4 0surveymon2ey com-

ypot&esis

%&ere is a relations&ip bet een major league baseball players’ salaries and

organi.ational payroll, success, and attendance0 Furt&ermore, sampled surveyors ill

support t&e t&emes and conclusions detailed in t&e revie of literature= t&at is

professional MLB players earn e5orbitant sums of money t&at s&ould be regulated in

accordance to a salary cap or t&roug& collective bargaining, baseball fans and consumers

&ave t&e po er to impact bot& MLB’s revenue stream and player salary amount0

(roblem !ignificance

eig&tened player salaries &ave been commonplace since t&e end of t&e <eserve

lause Era in Major League Baseball0 Free agency &as caused bidding ars bet een

teams for player services, t&erefore driving up t&e value of a player’s salary0 %&is, along

it& inflation of t&e /nited !tates /!- economy, increased at&leticism and popularity,

and t&e /0!0’s current economic deficit provides reason to study t&e effect of t&ese

astronomical salaries and t&eir conse@uences on t&e culture around us, t&e /nited !tates

citi.ens0 'n essence, t&ere must be a ay to better allocate money in order to pay



MLB Free Agency Effects C

professional baseball players &at t&ey deserve &ile maintaining affordable tic2et prices

for consumers0

Chapter 2REVIEW OF LITERATURE

'ntroduction

%&ere are numerous factors t&at determine t&e structure of a major league baseball

player’s salary and contract0 %&e transition from t&e reserve clause era to free agency in

1#6> as t&e beginning of a player contract e5plosion as players reali.ed t&e re ards

t&ey could reap in t&e business of baseball !c&midt, +$$+-0 Baseball is America’s game4

its popularity &as never been &ig&er t&an in t&is current era0 (layers are bigger and better

t&an ever, and t&e combined in;dept& media coverage and e5pansiveness 'nternet &ype

t&e game’s importance on an international level0 A product as commerciali.ed as Major

League Baseball MLB- can reap t&e re ards of product purc&asing and gate receipts,

afford to distribute t&ose re ards out by paying t&eir or2ers large sums of money, and

continue to ma2e profits every year from t&eir big mar2et teams because of its popularity

and t&e consumer’s illingness to generously support its business Le is, +$$3-0

%&e purpose of t&is literature revie is to researc& t&e origins of free agency and

&o a MLB player’s contract and salary came to be &at it is today0 <evie ing literature

on MLB competitiveness can &elp reveal &at elements influence and determine t&ese

at&letes’ salary structure0 %&e literature revie &as been organi.ed into t&e follo ing

sections4 t&e &istory of MLB payroll and free agency= t&e components of a MLB contract=

and correlation bet een payroll, success, and attendance0




istory of MLB payroll

MLB players earned e5ponentially less money decades ago compared to &at

t&ey are earning no 0 %&is is because free agency did not come into effect until MLB

stopped ad&ering to t&e reserve clause0 /nder free agency players began to test t&e labor

mar2et in &opes of getting paid &at t&ey ere ort& in talent, and for see2ing a team

t&at ould treat t&em rig&t0 %&erefore, collective bargaining and free agency &ave

ultimately led to an escalation of player salaries in t&e MLB0

Antonietti +$$C- observed and outlined common features and issues about main

contributions t&at determine t&e professional at&lete’s ages0 Antonietti detailed )ort&American baseball, &oc2ey, bas2etball, and European soccer labor mar2ets among team

sports= /nited !tates professional golf as t&e subject of single;player sports0 Antonietti

measured t&e individual player’s salaries it&in t&eir labor mar2et in comparison to team

revenue, &ic& is an estimated linear e@uation t&at includes in percent, &ome

attendance, stadium capacity and location, fan racial discrimination, and income it&in a

given location Antonietti, +$$C-0

!pecifically to MLB, Antonietti +$$C- found t&at t&e end of t&e reserve clause

era occurred in 1#6>, and mar2ed t&e beginning of free agency0 Baseball Labor Mar2et’s

<eserve lause stated t&at t&e team in &ic& a player as drafted or signed by o ned

&im Antonietti, +$$C-0 %&is meant t&at t&e players &ad no leverage on t&eir professional

careers after t&ey signed t&eir initial contract0 9nce t&e clause as eliminated players

could increase t&eir earnings e5ponentially by opting for free agency and see2ing bigger

contracts and &ig&er salaries0 Free agents ere allo ed to negotiate it& any team and




see2 top dollar for t&eir services0 !ince teams began competitively bidding for player

services, t&is boom in free agency began t&e up ard trend in player salaries0

ollective bargaining is a process of negotiation bet een t o parties on t&e

purpose of reac&ing a common goal0 A ollective Bargaining Agreement BA- as

introduced in t&e MLB after t&e reserve clause as abolis&ed in 1#6> and is an

agreement bet een t&e MLB o ners&ip and t&e players union in t&e MLB, t&e Major

League Baseball (layers Association MLB(A-0 Essentially, a ne agreement must be

reac&ed bet een t&e MLB and t&e MLB(A prior to &en t&e e5isting contract ends in

order to prevent a stri2e or player loc2out0 MLB players are re@uired to follo t&eguidelines of t&e BA t&roug&out t&e duration of t&eir career0 !imilarly, Euston and

Bro n +$$6- suggest t&at t&ese guidelines apply to constructing a contract, salary

arbitration, drug testing, and minimum ages Euston, +$$6-0

7a&an and Macdonald +$$1- conducted a case study on collective bargaining

amongst Australian footballers0 'n t&is scenario t&e Federal Football League FFL-

represented management and t&e )ational Association of (rofessional Footballers

)A(F- represented t&e players union0 %&e five issues t&at ere negotiated ere lengt&

of agreement bet een 1 and " years-, implementing a player draft, salary cap, minimum

salary policy, and c&oice of boots to ear0 )aturally, t&e t o teams ere at odds it& one

anot&er during t&e negotiation process because eac& team strived for different outcomes0

%&e FFL desired a longer agreement contract, a player draft, salary cap, lo er minimum

salary, and a single c&oice of boots for every team and player0 %&e )A(F anted a

s&orter lengt& of contract, no salary cap so players could earn &ig&er sums of money, and

boots to be c&osen by t&e individual players depending on taste0



MLB Free Agency Effects #

Bot& teams received bac2ground info on t&e scenario at &and, timed periods to

negotiate issues, and ere a arded points to eac& side depending on t&e final outcome of

t&e bargaining0 From t&is case study t&ere as a possible 1","$$ outcomes, &o ever t&e

t&ree outcomes of interest ere &ere t&e FLL as able to score ma5imum points, &ere

t&e )A(F as able to score ma5imum points, and &ere eac& team’s score as e@ual and

t&us optimal for bargaining0 %&is provided a learning process &ic& proved t&at

bargaining is s&aped by &o or &at represents a given side, and also t&at bot& sides

must meet some &ere in t&e middle to produce optimal results and efficiency0

Free agency, along it& collective bargaining, determines real gro t& of playercompensation in professional sports layton, 1###-0 'nterestingly, t&e sports labor

mar2et &as t&e same fundamental driving forces as any ot&er labor mar2et0 (layers’

unions do not negotiate standard age policies for all or most members collectively0

<at&er, players rely on direct negotiations it& agents and team o ners to compensate

for t&emselves0 Average salary levels are muc& lo er for football and &oc2ey t&an

bas2etball and baseball0 9ne t&ing in common among MLB teams and ot&er professional

sports leagues is t&e competition meant to implement efficient contract negotiations

lar2e, 1###-0 Dit&out competition over t&eir services, players did not get paid &at

t&ey ere capable of ma2ing0

omponents of a MLB contract

9ne major issue t&at a BA determines, among ot&er rules and regulations suc&

as positive drug testing conse@uences, is t&e guidelines on &o a player may negotiate a

contract it& prospective major league teams Euston, +$$6-0 Mason and !lac2 +$$1-



MLB Free Agency Effects 1$

stated t&at as player unions suc& as t&e MLB(A began forming in t&e 1#6$’s, player

relations&ips it& agents became an important resource0 %&e majority of players &ire

agents to &andle t&eir legal contracts due to a lac2 of time, e5pertise and financial

resources0 Agents ill often consolidate under unions to accommodate numerous clients

at a time in order to perform t&eir services to t&e best of t&eir abilities and provide t&eir

clients t&e best contracts as possible0

Euston +$$6- suggests t&at MLB players and t&eir agents compete for salaries

based on t&eir current statistics, value to t&eir team based on leaders&ip @ualities or t&eir

position, age, and t&e current economic climate at t&e time of t&eir negotiation of a necontract0 Entering free agency means putting oneself out on auction to all teams in t&e

league0 %&e MLB does not implement a salary cap, rat&er t&ey regulate a competitive

balance ta5 &ere if teams e5ceed an agreed upon total payroll t&ey must pay t&e

conse@uences0 :ue to suc& restrictions, management ill often rely on options as a ay

to provide fle5ibility or security for players and o ners&ip ali2e Euston, +$$6-0

%&ere is a ide array of options in terms of a contract4 team options, player

options, concrete;based contracts, and incentive;based contracts are among t&ese options0

9ptions in a professional baseball player’s contract come in a ide array and &ave a

significant effect on player compensation from t&eir employing team Euston, +$$6-0

%&ey are more prevalent in &ig&er paid;players’ contracts, and teams t&at &old options on

players may be able to control costs better, creating more income for t&eir organi.ation0

D&en considering options on MLB player contracts, a team may offer to

renegotiate a player’s contract during &is current contract tenure, adding years and raising

salary to avoid ot&er teams rising up &is price in free agency 8ermac2, 1###-0 %&is is




more common t&an a player option, and it allo s a baseball team a clearer vision of &o

to prepare for t&e future by loc2ing up impact players for less money t&an losing t&em to

free agency or &aving to pay more0 (layers earn e5ponentially more as t&eir years of

e5perience or service increases Antonietti, +$$C-0

layton and 8ermac2 1###- e5plain t&at contracts t&at are structured so t&at a

player can earn e5tra money on top of &is base salary from incentives are becoming more

popular today0 Attaining certain goals in order to earn pay 2eeps players motivated,

per&aps more so t&an t&ose &o are playing under guaranteed contracts0 7oals t&at can

trigger suc& options include ac&ieving certain individual statistics 0*$$ batting average,*$ &ome runs-, collective team ac&ievements &elp team in t&e division and ma2e t&e

playoffs-, boosting attendance, all;star recognition, and inning or being considered for

a ards M (, 7olden 7love-0 A bonus occurs &en a player is paid over and above &is

negotiated salary layton, 1###-0

layton and 8ermac2 suggest t&at a young player, one &o &as spent less t&an si5

years time in t&e MLB, cannot opt for free agency and is t&us restricted to &is current

team unless aived or released layton, 1###-0 After t&e first si5 years t&ey can become

eligible for free agency and t&eir salaries increase dramatically, especially if t&ey &ave

been found to be solid, starting players at t&eir respective positions0

%&e transition from t&e reserve clause to modern free agency correlated it&

players’ salaries and team payrolls increasing layton, 1###-0 %&e competitive bidding

bet een teams for a player can lead to a salary t&at is too &ig& due to t&e inflation in

offers t&at occur during contract negotiations0 %&is calculated ris2 on investing in talent

ta2en by organi.ations’ general managers is called t&e G inner’s curse0H !ince baseball



MLB Free Agency Effects 1+

salaries &ave become s2e ed to ard t&e top of t&e salary, only t&e top players benefit

from free agency because t&ey reap t&e most benefits from free agency and t&e lo er;

talented players only ma2e a marginal amount of money compared to t&e superstars

Iuir2, 1##+-0

ontract negotiation bargaining is an intriguing process0 't centers mainly on

yearly salary and contract lengt&, and it is &at ultimately determines &at a player’s

contract or salary range ill be and can be e5plained by a fe concepts0 %&e marginal

revenue product M<(- ma2es it possible to calculate t&e most t&at a profit;oriented team

could offer a player :ep2en, 1###-0 A player’s reservation age is t&e ne5t &ig&est offerfor a contract &e could receive from anot&er team0 Eac& of t&ese values represents t&e

ma5imum and minimum limits on salary, respectively, t&at a player could earn0 /nion

activities, player bargaining po er, negotiating rig&ts, free agency, and t&e reserve clause

system all factor into &o ide or narro a player’s possible salary range ill be Iuir2,

1##+-0

A player’s p&ysical s2ill set provides &im or &er a bargaining c&ip for contract

negotiations0 (layers it& a &ig&er s2ill set ill earn more money and t&erefore generate

t&eir team earnings in a specific mar2et0 (layers at certain positions tend to earn more

t&an t&e average player at ot&er positions4 catc&ers, s&ort stops, and center fielders earn

more as t&e strengt& up t&e middle of t&e field must &old true to importance in defense

!cully, 1#6"-0 A player can earn more money by &elping &is team in and generating

attendance0 %&ere is bigger potential in generating attendance for big mar2et teams t&an

in small mar2et teams because of population and fan base factors Antonietti, +$$C-0

olmes +$$3- rites t&at free agents tend to be ea2er players on average t&an



MLB Free Agency Effects 1*

players &o sign e5tensions it& t&eir previous teams because of t&e difference in

average salaries0 %&e average player currently earns *,+"$,$$$ per year in t&e first year

of &is contract !portsline, +$$#-0 %&is includes t&e players in t&e first several years of

t&eir contract &o are paid significantly lo er t&an t&eir free mar2et age because t&ey

are not eligible for free agency0 !portsline +$$#- displays t&at players signing single;

year contracts average a salary of 1,1"3,C**, compared it& an average salary of

",$11,C6> for players signing multi;year contracts0 Lengt& of contract is almost

irrelevant in t&e lo er ranges of t&e salary distribution because t&e majority of t&ose

players sign single;year contracts any ay olmes, +$$3-0't s&ould be considered, &o ever, t&at some players mig&t c&oose to sign a less

lucrative contract in order to obtain a more agreeable situation in accordance to city

location, family, or personal preference Euston, +$$6-0 For e5ample, a player &o &as

been playing in Atlanta &is entire career may feel comfortable staying put and ta2ing less

money rat&er t&an playing in an unfamiliar city or ot&er ise for insignificantly more

money0 !imilarly to &o a team may need a certain positional player t&an anot&er in one

year as opposed to anot&er, players also prefer to play for a team &ere t&eir positional

services are needed t&e most0 %&us t&ey are inclined to listen to &at team offers t&e best

deal for playing time0

/ltimately supply and demand is reflected in players’ salaries0 %&e timing of

&en a player is loo2ing for a ne contract and t&e needs of eac& team in a particular

season greatly affect t&e si.e and particulars of t&e player’s contract Euston, +$$6-0 Eac&

player is &is or &er o n business and &e &as t&e ability to invest &imself as efficiently as

&e pleases0



MLB Free Agency Effects 1"

orrelation bet een payroll, success, and attendance

%&ere are t&ree main factors as to &o major league baseball players can be paid

as muc& as t&ey are Euston, +$$6-0 9ne factor is t&at big name players produce millions

in revenue for sports team o ners0 %&e second factor is t&at younger players are

restrained from ma2ing as muc& money as e@ually talented veterans due to contract

restraints0 %&e t&ird factor is t&at bot& o ners and fans are illing to spend on money to

build and support t&e product0 %&us t&e flo ing stream of money bet een spectators and

t&e o ners &o rite t&e payc&ec2s for t&ese players justifies big salaries since t&eyultimately control fan attraction and local revenue Moreland, +$$+-0

Levin, Mitc&ell, olc2er, and Dill suggest t&at local revenue is t&e single largest

component of most MLB teams’ revenue and includes tic2et profits, local television,

radio, and cable profits, concession sales, local advertising gains, sponsors&ip,

publications, par2ing fees, suite rentals, and postseason and spring training revenues

Levin et al0, +$$$-0 't is t&e @uic2est gro ing form of revenue in baseball, and successful

teams it& plenty of resources can t&erefore set &ig&er tic2et prices as a result of interest

generated in atc&ing t&e team perform Moreland, +$$+-0 Also, big mar2et cities suc& as

Boston, )e 8or2, Los Angeles, and (&iladelp&ia tend to a ard t&eir players &ig&er

salaries because t&ey &ave more money t&an smaller mar2et teams due to media attention,

fan base, and ot&er forms of income0

%&ere is a correlation bet een inning teams and &ig& attendance rates, and t&us

revenue Levin et al0, +$$$-0 D&en big mar2et teams can fill t&e stands by playing

successfully t&ey ill reap t&e re ards more so t&an teams in smaller mar2ets0 Baseball



MLB Free Agency Effects 1>

Almanac +$$>- &as c&arted t&e annual attendance for American League baseball teams0

'n +$$> t&e )e 8or2 8an2ees yielded t&e &ig&est annual attendance amount at

",$#$,""$ spectators Anonymous, +$$>-0 o ever, tic2et;pricing decisions by a profit;

oriented o ner are not correlated to teams being able to afford &ig&er player salaries0

D&en as2ed about t&e amount of money a major league baseball player ma2es,

former baseball player :avid !egui )) !', Mo’ Money, +$$$- stated4

!ure it’s a lot of money, but loo2, t&e stadiums are full and loo2 at t&e money t&ey

are ma2ing off television0 %&e industry generates t&at 2ind of revenue and it&outt&e players, &o’s going to atc&K Joe Blo can’t play at t&is level as cited in

Moreland, +$$+-0

'n retrospect, &en management is ma2ing a profit on t&eir product as t&ey pay t&ese

astronomical sums of money to players, t&e trut& is t&at t&e &ig&est;paid players still do

not ma2e enoug& based on total league and individual team income0 %&e only possible

ay to successfully lo er MLB players’ salaries is for consumers to refuse buying

merc&andise and attending games0

About0com’s !cott endric2 +$$#- provided t&e top salaries and contracts in

baseball &istory by annual salary and total contract t&roug& :ecember +$$30 Based solely

on projected numbers, an astounding eig&t of t&e ten &ig&est paid players in baseball still

deserve more money0 Ale5 <odrigue. o ns t&e &ig&est t o salaries and contracts in

baseball4 +$$3 8an2ees at +60> million per year, and +$$1 <angers at +>0+ million per

year0 <odrigue.’s 1$ years, +6> million it& t&e 8an2ees in +$$3, and 1$ years, +>+



MLB Free Agency Effects 1C

million it& t&e <angers in +$$1 contracts are astronomical endric2, +$$#-0 <odrigue.

is t&e only player to eclipse +$$ million total in a contract in all of baseball so far0

9f t&e t elve players included by endric2 +$$3-, four are currently under

contract for t&e )e 8or2 8an2ees, and t&ree of t&ose 8an2ees ma2e salaries of more

t&an +$ million per year0 %&ose four 8an2ees signed eac& of t&e top five contracts in

baseball0 %&ree of t&ose t elve are pitc&ers, and eac& of t&em is left;&anded, &ic& is

considered a rare commodity0 From 1##> to 1### only t&ree baseball teams ac&ieved

profitability= t&e 8an2ees ere one of t&e t&ree teams Levin et al0, +$$$-0 onclusively,

t&e 8an2ees could justify paying astronomical contracts it&in t&eir salary payroll due toyears of commitment by t&eir fans t&at attended games, purc&ased merc&andise, and

believed in t&eir &ome team as t&ey on +6 Dorld !eries c&ampions&ips as of +$1$0

ompetitive balance can lead to players ta2ing t&eir services else &ere0 Euston

and Bro n +$$6- state t&at if t&e players and t&eir agents are not satisfied by t&e

prospective contract offers, t&ey are able to test t&e mar2et else &ere, suc& as t&e

Japanese league, &ic& &as been 2no n to pay &ig& salaries to American players as

dra ing cards0 %&ese types of players are meant to attract and dra ne or e5isting fans

into atc&ing games0 )ame recognition trumps t&e player’s current ability to put up

above average statistics in t&is because t&e name provides its team a valuable c&ip in

advertising and promotions Euston, +$$6-0

%&e average major league baseball player ma2es more money t&an t&e president

of t&e /nited !tates ma2es, &ic& is "$$,$$$ (residents, +$$#-0 %&e reason for t&is is

t&at t&ese teams are generating enoug& revenue to pay players &opping sums of money

t&roug& attendance, merc&andise sales, and media outlets0 (layers’ salaries are continuing




to escalate every year, &ic& is no surprise due to baseball’s over &elming popularity in

t&e states0 o ever, if a team’s attendance and merc&andise sales go do n, teams may

&ave to ma2e pay cuts0 %&is is &en a team cannot afford to court t&e services of elite

players0

Baseball Almanac +$$>- presents Major League Baseball salaries &ic& sites t&e

average salary paid to players during t&e regular season and t&e minimum age met by

t&e MBL(A0 %eams are generating enoug& revenue to pay players &opping sums of

money0 %&is c&art e5&ibited t&e minimum and average salaries of MLB players in five;

year periods from 1#6$ to +$$>0 %&e minimum salary in 1#6$ as 1+,$$$ &ile t&eaverage salary among players as +#,*$*, and t&ese t o figures climbed steadily to

*$,$$$ and 1"*,6>C in 1#3$0 't as not until around 1##$ &en salaries began to

increase significantly, to 1$$,$$$ and >63,#*$ respectively, and just four years ago t&e

minimum salary gre to *1C,$$$ as t&e average baseball player made +,C*+,C>>

Anonymous, +$$>-, significantly more t&an 7eorge D0 Bus&, &o earned an annual

salary of "$$,$$$0

!ummary

Major league baseball players control governance over t&eir o n contract and

salary structure due to MLB’s popularity and e5posure to consumers0 'f a player &as t&e

tools to play elite baseball, can ma2e it into free agency or construct a ne contract after

si5 years of service, negotiate among big mar2et teams, and put fans in t&e seats in

stadiums and in stores &e ill get paid generously0 Economic factors suc& as tic2et and

merc&andise sales, a prospective baseball team’s current personnel, and t&e guidelines of




t&e BA eac& contribute to t&e player’s financial success, &ic& is independent from &is

team’s success Diseman, +$$*-0

%&ere must be a ay to construct contracts it& sensitivity to ards t&e current

economic state0 As elite player contracts and salaries continue to escalate &ile t&e

economy suffers, s&ould players ma2ing above a certain amount of money &ave a clause

in t&eir contract so as to allocate a portion of t&eir payc&ec2 to c&arities or companies in

financial crisisK Levin et al0 +$$$- recommend revenue s&aring at >$ , a >$

competitive balance ta5, central funds distribution, a competitive balance draft, a rule "

draft, and strategic franc&ise relocations to provide a more competitive reality for MLB0%&e league’s outdated economic system must be fi5ed in order for MLB to continue

gro ing &ile staying &ealt&y, stable, and popular Levin et al0, +$$$-0

%&ere are millions of people losing jobs t&at re@uire a completely different s2ill

set, people &o cannot ma2e nearly as muc& money annually as t&e baseball player

ma2ing minimum age0 %&ose people in professions it& significant impact on society,

science, and teac&ing our future generations must be s&o n importance and

compensation in comparison to a professional at&lete’s ability to significantly impact our

nation’s entertainment in regard to salary0

D&ile it is America’s concept of capitalism t&at allo s popular, revenue;reaping

professions suc& as commercial at&letics t&e opportunity, and more importantly t&e rig&t,

to earn t&e &ig&est possible amount of money it&in t&eir mar2et, t&e effects of vast

amounts of money being spent on and recycled it&in mar2ets lac2ing a significant affect

on society’s paramount issues ill prove troublesome for our nation’s future0 A future t&at

must solve important problems suc& as our nation’s debt cannot afford to spend on sports0



MLB Free Agency Effects 1#

'n a time of debt, ret&in2ing and revision of t&e very foundation t&at once

propelled our nation to t&e status of a orld superpo er must come into effect0

7overnment, businesses, and families t&at ma2e up our nation’s population needs to be

open and &onest it& one anot&er in order to consider a broader perspective t&at focuses

on continued progression to ard financial stability and practices rationali.ation of

societal importance0 't is time for citi.ens of t&e /!A to reali.e t&e implications of t&eir

spending &abits0 %&ere is a solution to paying off our nation’s debt by creating ne jobs

for t&e unemployed, rationing revenue based on economic and societal importance, and

t&roug& progressive t&in2ing0 9n a smaller scale, in@uiring upon fans’ t&oug&ts and ideason tic2et prices and player salaries in a grief;stric2en economy could provide an ans er

to stabili.ing MLB economics as a small part of one day stabili.ing America’s economics

as a &ole0

Chapter 3METHODOLOGY

!ource of :ata

%o furt&er my study on economics in t&e MLB, ' c&ose to collect data from t o

subject sources0 Firstly, t&e information from researc& articles used in my literature ill

provide t&e bac2bone to my argument as a &ole0 'nformation on Major league baseball’s

payroll &istory, t&e numerous components of player contracts, and correlations bet een

payroll, success, and attendance t&at &ave been discussed provide necessary terms and

details as to &o professional baseball players &ave managed to procure astronomical

contracts0



MLB Free Agency Effects +$

!econdly, ' &ave decided to survey local college and university sport management

majors0 %&e reasoning be&ind t&is being t&at our generation ill one day be in position to

&ead t&e MLB0 'f not&ing is done to resolve our nation’s debt, efficient money allocation

ill become a main focus to avoid money loss, or even ban2ruptcy0 (layer contracts and

tic2et prices, among ot&er aspects, s&ould be reevaluated due to t&eir importance upon

t&e e5istence of t&e professional sport0 %&erefore, t&eir opinions are valued in t&e sense

t&at t&eir leaders&ip and direction ill ultimately &elp influence MLB over t&e ne5t >$

years0

'nstrumentation

'n order to collect data for t&is study, ' ill &ave to utili.e an electronic survey as

my tool0 %&is form of data collection ill provide responses it& perspective on &at my

generation of sport managers &as observed about Major League Baseball, and t&eir

attitudes to ard aspects of t&e business t&at directly and indirectly affect our lives, s&ould

e c&oose to allo t&em to0

%&e survey ill be targeted at sport management sc&olars in t&e )ort& !&ore, MA

area0 ' ill gat&er t&e survey results and reflect upon responses to gain insig&t into our

generation’s perspective on t&e problem, and on &at terms can be e5pected of our

generation &en in control t&e league’s decision;ma2ing0

A correlation ill be distinguis&ed based on information gat&ered from my

literature revie and survey results0 ' ill attempt to identify t&is ultimate correlation

bet een MLB free agency, payroll, tic2et prices, attendance, success, and possible



MLB Free Agency Effects +1

solutions as to &o MLB can best allocate t&eir funds and preserve prices in t&e current

/nited !tates economy0

(rocedures

%&e study ill consist of a set of procedures0 First, a set of @uestions to must be

contemplated based on information gat&ered and conclusions dra n from my revie of

literature0 %opics of interest include player salary, team payroll, and competitive balance

it&in MLB0

' ill t&en create a survey on !urvey Mon2ey to in@uire about t&e pressing issuesrelating to MLB player contracts0 ' ill email collegiate sport management department

&eads in t&e )ort& !&ore, MA area re@uesting &elp in &aving t&eir students ta2e my

survey0 %&en, t&e survey ill be sent out to college students in t&e )ort& !&ore, MA area

electronically by t&eir department &eads0 <esults dra n from t&e survey ill be sent bac2

to me immediately via !urvey Mon2ey0

%&e number of surveys sent out is infinite, and t&erefore irrelevant, because t&e

survey is open to any student &o &as been granted access to ta2e it0 Furt&ermore, t&e

survey ill be anonymous, t&oug& t&e age and gender of eac& survey subject ill be

specified0 Aside from age and gender, t&e survey ill consist of seven @uestions intended

investigate t&e subject’s o n feelings about t&e problem and &o &e or s&e ould go

about finding a solution to simulated scenarios0 9nce a sufficient number of surveys are

submitted, bet een >$ and 1$$, t&e survey ill be closed and t&e data ill be sorted and

analy.ed0

%reatment of :ata



MLB Free Agency Effects ++

%&is study’s data analysis tec&ni@ues are focused on t&e interpretation of

@uantitative analysis0 :ata ac@uired from t&e survey ill be c&arted in tables in

correspondence to eac& subject’s individual responses, and t&e summary of subject

responses categori.ed by eac& @uestion0 Analysis of tables, and correlations t&at appear to

e5ist bet een similar responses to different @uestions t&roug&out t&e survey ill be tested

against my &ypot&eses0

%&e information to be gat&ered ill be based on descriptive researc&0 :escribing t&e

relations&ips t&at e5ist among t&e variables and t&e attitudes of my survey subjects

to ards t&ose variables in my study ill be representative of my generation’s prospectivesolutions to t&e problem at &and0 ollected survey responses are designed to4 1- provide

an insig&t to my generation’s attitudes to ard MLB in t&e present, and +- to discover

possible solutions to t&e problem at &and0

Chapter 4RESULTS AND DISCUSSION

A total of C6 surveys ere submitted via !urvey Mon2ey0 9f t&e C6 started

surveys, C$ surveys, or 3#0C , ere completed0 %able 1 displays t&e survey results

corresponding to @uestion 10 'n regards to age, *# students C*0# - reported to be +1

years of age or under, +1 *"0" - reported to be bet een t&e ages of ++ and *>, one

student 10C - reported to be bet een t&e ages of *C and >>, and no students ere it&in

t&e age range of >C and above0 Iuestion 1 as left unans ered C times0 %able + displays

t&e survey results corresponding to @uestion +0 'n regards to gender, "# male students

3$0* - and 1+ female students 1#06 - too2 part in t&is survey0 !tudents left @uestion +

unans ered C times0



MLB Free Agency Effects +*

%able * displays t&e survey results corresponding to @uestion *0 D&en as2ed if

t&ey ere more li2ely to attend a MLB baseball game if t&eir &ome team spent more

money on player salary, *3 students C+0* - ans ered yes, &ile +* *606 - ans ered

no0 9f t&e "# male students, *$ males ans ered yes and 1# males ans ered no0 9f t&e 1+

female students, 3 females ans ered yes and " females ans ered no0 !tudents left

@uestion * unans ered C times0 :ata supports my &ypot&esis t&at consumers impact

MLB’s revenue stream and salary available to players, as results s2e to ard &ig&er

li2eliness of attending a &ome team’s baseball game if t&eir organi.ation spent more

money on player salary0 Employing better players correlates to &eig&tened fan interest,and t&erefore gate receipt revenue0

%able " displays t&e survey results corresponding to @uestion "0 D&en as2ed an

opinion on &et&er professional baseball players ere paid too muc& money, "# students

3$0* - ans ered yes, &ile 1+ 1#06 - ans ered no0 9f t&e "# male students, "1 males

ans ered yes and 3 males ans ered no0 9f t&e 1+ female students, 3 females ans ered

yes and " ans ered no0 !tudents left @uestion " unans ered C times0 :ata supports my

&ypot&esis, s&o ing t&at a significant majority of sampled students represent an opinion

t&at professional baseball players are paid too muc& money0 Free agency’s effect on MLB

causes competitive balance bet een teams and &eig&tened player contract offers for

employment needs0

%able > displays t&e survey results corresponding to @uestion >0 D&en as2ed an

opinion on &et&er a ma5imum salary limit s&ould be imposed amongst players, 13

students *$ - ans ered yes, &ile "+ 6$ - ans ered no0 9f t&e "# male students, 16

males ans ered yes, *1 males ans ered no, and one male did not respond0 9f t&e 1+



MLB Free Agency Effects +"

female students, only one female ans ered yes and 11 females ans ered no0 !tudents left

@uestion > unans ered 6 times0 %&e result t&at a significant majority of sampled students

represent t&e opinion t&at a salary cap s&ould not be implemented opposes my &ypot&esis

of implementing a salary cap as beneficial to MLB’s economics0

A majority of *+ students >+0> - &o opined t&at professional baseball players

are paid too muc& money also ans ered t&at t&ey ere more li2ely to attend a MLB

game if t&eir &ome team spends more money on payroll0 Eig&teen students +#0> -

ans ered no to bot& @uestions, and 6 students 110> - &o ans ered t&at t&ey are more

li2ely to attend a MLB game if t&eir &ome team spends more on player salary do not believe t&at professional baseball players are paid too muc& money0 Five students 30+ -

&o do not t&in2 professional baseball players are paid too muc& money are also not

more li2ely to attend a MLB game if t&eir &ome team spends more on player salary0 :ata

strongly s&o s t&at consumers are more illing to attend t&eir &ome team’s games if t&at

team spends more on player salaries because t&e team is more competitive, even t&oug&

t&e consumers t&in2 t&at t&e salaries purc&ased are too &ig&0

%en students ans ered t&at t&ey are more li2ely to attend an MLB game if t&eir

&ome team spends more money on player salaries, &o ever t&e same 1$ students also

ans ered t&at a ma5imum salary limit s&ould be imposed amongst players0 'n contrast,

1" students &o ans ered t&at t&ey ere not more li2ely to attend a MLB game if t&eir

&ome team spends more money on player salary also ans ered no to setting a ma5imum

salary limit among players0 9nly 3 students &o are not more li2ely to attend a MLB

game if t&eir &ome team spends more money on players ans ered yes to setting a salary

cap0 %&e majority of students ans ered t&at t&ey are more li2ely to attend a MLB game if



MLB Free Agency Effects +>

t&eir &ome team spends more money on player salary, and t&at t&ere s&ould not be a

ma5imum salary limit imposed amongst players0

13 students opined t&at professional baseball players are paid too muc& money

and t&at a ma5imum salary limit s&ould be imposed by t&e MLB0 %&e majority of

students, &o ever, opined professional baseball players are paid too muc& money, but

also opined t&at a ma5imum player salary limit s&ould not be imposed0 % elve students

ans ered t&at professional baseball players ere neit&er paid too muc& money, and nor

s&ould a ma5imum player salary be imposed0

%able C displays t&e survey results corresponding to @uestion C0 D&en as2ed anopinion as to &at a feasible solution for MLB t&at could allocate salary money more

isely, a majority of +# students "60> - believed t&at players &ose contracts e5ceeded

a set ma5imum salary s&ould donate a percentage of t&eir earnings to c&arity0 Five

students 30+ - preferred decreasing all player salaries by 1$ , 1C students +C0+ -

preferred setting a team payroll salary cap in place of t&e current lu5ury ta5, and 11

students 13 - believes t&at MLB payroll is fine as it is0 9f t&e "# male students, +"

males "30# - preferred donating a portion of salary to c&arity, * males C01 - preferred

decreasing salaries by 1$ , 1" males +30C - preferred implementing a salary cap, and 3

males 1C0* - felt player salaries are fine0 9f t&e 1+ female students, > females "10C6 -

preferred donating a portion of salary to c&arity, + females 1C0C6 - preferred decreasing

salaries by 1$ , + females 1C0C6 - preferred implementing a salary cap, and * females

+> - felt player salaries are fine0 !tudents left @uestion C unans ered C times0 :ata

suggests t&at my idea of MLB implementing a strategy to allocate money to ard more



MLB Free Agency Effects +C

important economic and social conte5ts in t&e /0!0 as being more beneficial t&an cutting

player salaries or implementing a salary cap0

%able 6 displays t&e survey results corresponding to @uestion 60 D&en as2ed an

opinion on &at e, as consumers, could do to &elp ma2e tic2et prices more affordable, a

majority of *> students >60" - preferred boycotting attending games until tic2et prices

are forced to drop0 11 students 13 - c&ose refusing to purc&ase MLB;licensed

merc&andise and parap&ernalia, + students *0* - preferred to stop atc&ing televised

baseball games, and 1* students +10* - believe tic2et prices are currently fine0 9f t&e "#

male students, *$ males C10+ - preferred to boycott purc&asing tic2ets, > males 1$0+ - preferred refusing to purc&ase MLB;licensed merc&andise, + males "01 - preferred to

stop atc&ing televised games, and 1+ males +"0> - felt t&at tic2et prices are fine0 9f

t&e 1+ female students, " females **0* - preferred to boycott purc&asing tic2ets, C

females >$ - preferred refusing to purc&ase MLB;licensed merc&andise, and + females

1C0C6 - felt t&at tic2et prices are fine0 !tudents left @uestion 6 unans ered C times0 'n

support of my &ypot&esis on consumer’s ability to affect MLB’s revenue and team

payroll, "C students 6>0" - s&o ed an interest in ta2ing action in ma2ing tic2et prices

more affordable for consumers0

!i5 of t&e 11 students >"0> - &o c&ose refusing to purc&ase MLB;licensed

merc&andise and parap&ernalia as an ans er for @uestion 6 ere female0 Furt&er, C of t&e

females >$ - &o participated in t&is survey agreed on t&is ans er0 9f t&e C students

&o felt t&at player salaries and tic2et prices are bot& fine, > ere male and 1 as

female0 :ata indicates a s2e to ard female consumers cutting do n on merc&andise




purc&asing, indicating t&at female consumers are more s&opping;minded t&an male

consumers0

(erformance;en&ancing drug testing and standards continue to be implemented by

MLB in an attempt to 2eep t&e sport of baseball purified0 %able 3 displays t&e survey

results corresponding to @uestion 30 !ampled students e5pressed a split opinion &en

as2ed &et&er a professional baseball player’s contract s&ould be void if &e is found to

&ave used performance;en&ancing drugs, as +1 students *>0C - ans ered yes and an

identical +1 students *>0C - ans ered no0 A t&ree; ay split nearly occurred, it& t&e

additional 16 students +303 - e5pressing no opinion on t&is subject0 !tudents left@uestion 3 unans ered 3 times0 :ata proves inconclusive in determining a preference on

performance en&ancing drug penalties in a player’s contract0

Iuestion # as2ed t&e surveyors &et&er t&ey believe t&at t&e sum of player salary

payroll it&in an organi.ation could e5ceed t&e organi.ation’s profits0 'n addition,

surveyors ere as2ed if t&ey t&oug&t t&e league s&ould aid in regulating or reducing t&e

amount of money struggling organi.ations spend on player payroll in t&e current

economy0 %able # displays t&e survey results corresponding to @uestion #, s&o ing t&at

t&e majority of respondents ans ered it&in t&e midrange, tending to s2e to t&e middle

of t&e curve it& outliers s2e ing to yes0 9f t&e *# students >#01 - &o ans ered yes

to t&e first @uery, t&e majority of students, +# "60C - ans ered yes to t&e second @uery

as ell0 9f t&ose +# students, t&eir opinions on t&e second @uery ere split, as ++

students *C01 - believe t&at t&e league s&ould revie t&e ort& of player salary t&roug&

collective bargaining, &ile 6 students 110> - believe t&at a salary cap s&ould be

implemented0 %en students 1C0" - ans ered yes to t&e first @uery, but ans ered no to




t&e second, believing t&at it s&ould be up to t&e individual organi.ation to manage t&eir

finances efficiently0 9f t&e ++ students +C01 - &o ans ered no to t&e first @uery, 1*

students +10* - ans ered yes to t&e second @uery, believing t&at t&e MLB and t&e

MLB(A s&ould settle issues t&roug& collective bargaining0 %&e # students 1"03 - &o

ans ered no to bot& @ueries believe t&at baseball players &ave t&e rig&t to earn as muc&

money as t&e desire0 !tudents left @uestion # unans ered C times0

As discussed in c&apter +, professional sports leagues t&at do not implement a

salary cap allo players to see2 more money in contracts0 MLB does not implement a

salary cap, and as a result professional baseball players ran2 at t&e top of individualsalaries among professional at&letes0 Iuestions >, C, and # eac& regarded t&e idea of

implementing a salary limit amongst MLB players0 !i5 students ans ered yes to @uestion

> and preferred setting a salary cap as an ans er to @uestion C0 Four students t&at

preferred setting a salary cap as an ans er to @uestion C also preferred setting a salary cap

as an ans er t&e second @uery of @uestion #0 Four students ans ered yes to @uestion >

and preferred setting a salary cap as an ans er to @uestion C and t&e second @uery of

@uestion #0 %&is perceived correlation in responses bet een t&ese t&ree @uestions

suggests t&at a mild interest in implementing a salary cap e5ists among surveyed

students0

Chapter 5SUMMARY AND CONCLUSIONS

%&e purpose of t&is study as to e5amine attitudes to ard major league baseball

players’ salaries and t&eir effects on organi.ational payroll, success, and attendance

it&in t&e /nited !tates economy0 %&e results gat&ered from analy.ed survey data



MLB Free Agency Effects +#

combined it& t&e information detailed in t&e literature revie suggest findings t&at

generally support my &ypot&eses0 :ata suggests t&at t&ere is indeed a relations&ip

bet een major league baseball players’ salaries and organi.ational payroll, success, and

attendance0

Furt&ermore, sampled surveyors support t&e t&emes and conclusions detailed in

t&e revie of literature0 %&e first conclusive result is t&at professional MLB players earn

e5orbitant sums of money, as "# out of C1 students surveyed responded t&at t&ey believe

MLB players ma2e too muc& money0 'n addition, +# of C1 "60> - sampled students

believed players donating part of t&eir earnings over a set salary limit to c&arity ould bet&e most feasible solution in isely allocating salary money0

:etermining &et&er player salary s&ould be regulated in accordance to a salary

cap, t&roug& collective bargaining, or by anot&er means as some &at inconclusive0

!pecifically, 6$ of sampled students preferred t&at a ma5imum salary limit not be

implemented0 Furt&er, sampled students preferred collective bargaining to implementing

a salary cap in t&e instance t&at organi.ations began struggling it& revenue in t&e

current economy0 Lo ;to;moderate interest in implementing a salary cap as revealed,

&o ever, &en sampled students ere as2ed a feasible solution for MLB to allocate

money more isely, as 1C students +C0+ - c&ose

My &ypot&esis t&at baseball fans and consumers &ave t&e po er to impact bot&

MLB’s revenue stream and t&e &eig&t of player salary is supported by t&e data in t&e

survey results0 *> of C1 students >60" - agreed t&at boycotting attending MLB games

ould eventually cause tic2et prices to drop0 Anot&er +10* added t&at refusing to

purc&ase MLB;licensed merc&andise and refusing to atc& televised baseball games



MLB Free Agency Effects *$

ould aid in ma2ing tic2et prices more affordable0 %&is data suggests t&at fan illpo er

can affect t&e professional baseball business0 A majority of *3 out of C1 students C+0* -

also agreed t&at t&ey are more li2ely to attend t&eir &ome team’s baseball games if t&ey

spend more resources on play salary, &ic& suggests fans appreciate team’s efforts in

attempting to construct successful teams0

'n conclusion, MLB s&ould allocate money more isely before eit&er t&e league

begins losing large sums of money due to overblo n salaries, or t&eir fans turn t&eir

bac2s on t&e league t&roug& boycotting met&ods t&at can s&ift t&e po er and balance of

players and o ners it&in t&e league0 %&e most feasible ay to allocate t&e money, assuggested by survey results, is to donate a certain amount of money over a player’s set

salary limit to c&arity or ot&er organi.ations of significant importance0 /ltimately,

7eneration 8 ill be t&e catalysts of c&anging t&e MLB for t&e better by realistically

lo ering astronomical player salaries in a capitalistic nation0



MLB Free Agency Effects *1

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++>, +*3;+*#0 Boston4 (rinceton /niversity (ress0

!c&midt, M0, O Berri, :0 +$$+-0 ompetitive balance and mar2et si.e in major league

baseball4 A response to baseball’s blue ribbon panel0 (e)ie* of "ndustrial

+rgani ation, /' 1-, "1?>"0



MLB Free Agency Effects **

!cully, 70 1#6"-0 (ay and performance in major league baseball0 American 4conomic

(e)ie* , 5- C-, 1>?*$0

!elig, B0 +$$C-0 +$$6;+$11 basic agreement0 Collecti)e 0argaining Agreement 0

<etrieved February 1$, +$$#, from

&ttp4 0bi.ofbaseball0com images docs +$$6P+$11Pcba0pdf

!portsline +$$#-0 MLB salaries4 Average player salary0 C0S Sports1 .60 0 <etrieved

June 3, +$$#, from &ttp4 0sportsline0com mlb salaries avgsalaries

Diseman, F0, O &atterjee, !0 +$$*-0 %eam payroll and team performance in major

league baseball4 1#3>;+$$+0 4conomic 0ulletin, ' +-, 1?1$0

%able 1

' Please indicate your age

Ans ered @uestion C1



MLB Free Agency Effects *"

!2ipped @uestion C

<esponse <esponse (ercent <esponse ount

/nder +1 C*0# *#

++;*> *"0" +1

*C;>> 10C 1

>C $0$ $

%able +

/ Please indicate your gender




MLB Free Agency Effects *>

!2ipped @uestion C


Male 3$0* "#

Female 1#06 1+

%able *

7 Are you more likely to attend a .a8or 6eague 0ase3all game if your home team spends

more on player salary9



MLB Free Agency Effects *C


!2ipped @uestion C


8es C+0* *3

)o *606 +*

%able "

- "n your opinion, are professional 3ase3all players paid too much money9





!2ipped @uestion C


8es 3$0* "#

)o 1#06 1+

%able >

& Should a ma:imum salary limit 3e imposed amongst players9

Ans ered @uestion C$




!2ipped @uestion 6


8es *$0$ 13

)o 6$0$ "+

%able C

5 What is a feasi3le solution for .a8or 6eague 0ase3all that could allocate salary

money more *isely9



MLB Free Agency Effects *#


!2ipped @uestion C


(layers over a set ma5imum salary limit s&ould donate a percentage of t&eir earnings to

c&arity

"60> +#

:ecrease all player salaries by 1$

30+ >

!et a team payroll salary cap instead of t&e current lu5ury ta5

+C0+ 1C

MLB payroll is fine as it is

130$ 11

%able 6

; What could *e, as consumers, do to help effecti)ely make ticket prices more

afforda3le9



MLB Free Agency Effects "$


!2ipped @uestion C


Boycott attending live games until tic2et prices are forced to drop

>60" *>

<efuse to purc&ase MLB;licensed merc&andise and parap&ernalia

130$ 11

!top atc&ing televised baseball games

*0* +

%ic2et prices are fine as it is

+10* 1*

%able 3

< Should a professional 3ase3all player=s contract 3e )oid if he is found to ha)e used

performance#enhancing drugs9



MLB Free Agency Effects "1

Ans ered @uestion >#

!2ipped @uestion 3


8es *>0C +1

)o *>0C +1

)o (reference +303 16

%able #

$ Do you 3elie)e that the sum of player salary payroll *ithin an organi ation could

e:ceed the organi ation=s profits9 !urthermore, if an organi ation is struggling in the



MLB Free Agency Effects "+

current economy, should the league aid in regulating or reducing *hat organi ations

spend on payroll9


!2ipped @uestion C


8es; and yes, t&e league s&ould place a cap on team payroll

110> 6

8es; and yes, t&e league s&ould revie t&e ort& of player salary t&roug& collective

bargaining

*C01 ++

8es; and no, it s&ould be up to t&e individual organi.ation to efficiently manage t&eir

finances

1C0" 1$

)o; and yes, it is up to t&e league and t&e playerQs union to solve t&is problem

+10* 1*

)o; and no, players &ave t&e rig&t ma2e as muc& money as possible in t&e /0!0

1"03 #

Appendi5 A4 'nformed onsent

8ou are being invited to participate in a researc& study about free agency and

Major League Baseball player salaries0 Jesse astleman, a sport management major from



MLB Free Agency Effects "*

Endicott ollege, is conducting t&is study0 %&is study is being conducted as part of an

undergraduate t&esis project0 8ou ere selected as a possible participant in t&is study

because you are a sport management major it&in t&e )ort& !&ore, MA area0

%&ere are no 2no n ris2s if you decide to participate in t&is researc& study0 %&ere

are no costs to you for participating in t&e study0 %&e information you provide ill aid me

in my senior t&esis project on Major League Baseball salaries0 %&is @uestionnaire ill

ta2e appro5imately 1 minute to complete0 %&e information collected may not benefit you

directly, but t&e information learned in t&is study s&ould provide more general benefits0

%&is survey is anonymous0 8our name ill not be re@uested in t&is survey, andyour 'nternet’s '( address ill not be collected0 Absolute anonymity, &o ever, cannot be

guaranteed over t&e 'nternet0 )o one ill be able to identify you or your ans ers, and no

one ill 2no &et&er or not you participated in t&e study0 (rofessors from Endicott

ollege and individuals from t&e 'nstitutional <evie Board may inspect t&ese records0

!&ould t&e data be publis&ed, no individual information ill be disclosed0

8our participation in t&is study is voluntary0 By completing and submitting your

survey form, you are voluntarily agreeing to participate0 8ou are free to decline to ans er

any particular @uestion you do not is& to ans er for any reason0

'f you &ave any @uestions or comments about t&is study, please contact Jesse

astleman at jcast+*$Rmail0endicott0edu by email0

My re@uest to conduct t&is survey &as been revie ed and accepted by t&e

Endicott ollege !c&ool of !port !cience0



MLB Free Agency Effects ""

Appendi5 B4 !urvey <a :ata

Payroll and Free Agency in MLB

Documents

Transcript of Payroll and Free Agency in MLB