Top Ad
I DIG Radio
www.idigradio.com
Listen live to the best music from around the world!
I DIG Style
www.idigstyle.com
Learn about the latest fashion styles and more...

Boras to clients: Don't 'bail out' MLB owners

Written by 
Published in Baseball
Thursday, 28 May 2020 11:46

NEW YORK -- Agent Scott Boras recommends that his clients refuse Major League Baseball's attempt to cut salaries during negotiations with the players' association, claiming team financial issues caused by the coronavirus pandemic have their origin in management debt financing.

In an email obtained by The Associated Press, Boras wrote that players should not alter terms of the March 26 agreement between MLB and the union that called for players to reduce their salaries to a prorated rate based on a shortened season.

MLB on Tuesday proposed a series of tiered reductions that would cause top stars to receive the biggest cuts.

"Remember, games cannot be played without you," Boras wrote to his clients. "Players should not agree to further pay cuts to bail out the owners. Let owners take some of their record revenues and profits from the past several years and pay you the prorated salaries you agreed to accept or let them borrow against the asset values they created from the use of those profits players generated."

Boras is baseball's best-known agent and represented 71 players on active rosters and injured lists as of last Aug. 31, the most among player representative firms. His company based in Newport Beach, California, negotiated more than $1.2 billion in contracts during the offseason.

Salaries were set to range from $563,500 for players at the major league minimum to $36 million for Mike Trout and Gerrit Cole, who is a Boras client. Under the March agreement, the range would be cut to roughly $285,000 to $18 million for the 82-game regular season MLB has proposed. Under the economic proposal made by MLB this week, the range would be reduced to about $262,000 to $8 million, including shares of a bonus all players would receive if the postseason is played.

"Owners are asking for more salary cuts to bail them out of the investment decisions they have made," Boras said. "If this was just about baseball, playing games would give the owners enough money to pay the players their full prorated salaries and run the baseball organization. The owners' current problem is a result of the money they borrowed when they purchased their franchises, renovated their stadiums or developed land around their ballparks. This type of financing is allowed and encouraged by MLB because it has resulted in significant franchise valuations.

"Owners now want players to take additional pay cuts to help them pay these loans. They want a bailout. They are not offering players a share of the stadiums, ballpark villages or the club itself, even though salary reductions would help owners pay for these valuable franchise assets. These billionaires want the money for free. No bank would do that. Banks demand loans be repaid with interest. Players should be entitled to the same respect."

Cincinnati Reds pitcher Trevor Bauer addressed Boras on Wednesday on Twitter.

Boras declined to comment on Bauer's remarks.

Commissioner Rob Manfred has said 40% of MLB's revenue is related to the gate. Teams told the union on May 12 that MLB would lose $640,000 for each game played in empty ballparks without fans. MLB claimed that playing with prorated salaries in empty ballparks would cause a $4 billion loss and give major league players 89% of revenue.

Washington Nationals pitcher Max Scherzer, among three Boras clients on the union's eight-man executive subcommittee, issued a statement late Wednesday night.

"There's no need to engage with MLB in any further compensation reductions," Scherzer said.

Boras cited the purchase of the Chicago Cubs by the Ricketts family and the redevelopment of Wrigley Field. Debt financing was key to both, he said.

"Throughout this process, they will be able to claim that they never had any profits because those profits went to pay off their loans," Boras wrote. "However, the end result is that the Ricketts will own improved assets that significantly increases the value of the Cubs -- value that is not shared with the players."

Boras asked clients to "please share this concept with your teammates and fellow players when MLB request further concessions or deferral of salaries."

"Make no mistake, owners have chosen to take on these loans because, in normal times, it is a smart financial decision," Boras wrote. "But these unnecessary choices have now put them in a challenging spot. Players should stand strong because players are not the ones who advised owners to borrow money to purchase their franchises and players are not the ones who have benefited from the recent record revenues and profits."

He added that salaries have been flat for several years. The Opening Day average has been in the $4.4 million range since 2016.

Read 314 times

Soccer

Marta, Orlando Pride win 1st NWSL Championship

Marta, Orlando Pride win 1st NWSL Championship

EmailPrintOpen Extended ReactionsKANSAS CITY, Mo. -- Barbra Banda's goal stood up as the winner to l...

Ipswich vs Man United: VAR stopped by fire alarm

Ipswich vs Man United: VAR stopped by fire alarm

EmailPrintOpen Extended ReactionsVAR was temporarily suspended during Manchester United's clash at I...

Amorim era begins with fastest Utd goal of season

Amorim era begins with fastest Utd goal of season

EmailPrintOpen Extended ReactionsRúben Amorim was made to wait just 81 seconds for the first goal of...

2026 FIFA


2028 LOS ANGELES OLYMPIC

UEFA

2024 PARIS OLYMPIC


Basketball

'Phenomenal' Pippen Jr. shines in dad's ex-arena

'Phenomenal' Pippen Jr. shines in dad's ex-arena

EmailPrintOpen Extended ReactionsScotty Pippen Jr. already had plenty of fond memories of watching h...

Ball's career-best 50 not enough as Hornets fall

Ball's career-best 50 not enough as Hornets fall

EmailPrintOpen Extended ReactionsLaMelo Ball became the third-youngest player in NBA history, and th...

Baseball

Hays, Finnegan, Rodgers among new free agents

Hays, Finnegan, Rodgers among new free agents

EmailPrintOpen Extended ReactionsNEW YORK -- Outfielder Austin Hays and right-hander Kyle Finnegan -...

Judge giving Soto space amid free agency frenzy

Judge giving Soto space amid free agency frenzy

EmailPrintOpen Extended ReactionsNEW YORK -- Aaron Judge is one of the few people on Earth who can r...

Sports Leagues

  • FIFA

    Fédération Internationale de Football Association
  • NBA

    National Basketball Association
  • ATP

    Association of Tennis Professionals
  • MLB

    Major League Baseball
  • ITTF

    International Table Tennis Federation
  • NFL

    Nactional Football Leagues
  • FISB

    Federation Internationale de Speedball

About Us

I Dig® is a leading global brand that makes it more enjoyable to surf the internet, conduct transactions and access, share, and create information.  Today I Dig® attracts millions of users every month.r

 

Phone: (800) 737. 6040
Fax: (800) 825 5558
Website: www.idig.com
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Affiliated