Is Major League Baseball Still On Strike?
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It’s been almost a month since the Major League Baseball players went on strike, and there’s no end in sight. With the season rapidly approaching its end, fans are wondering if the players will ever come back to the diamond.
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The current state of Major League Baseball
As of September 2020, Major League Baseball is still on strike. The last time that Major League Baseball had a strike was in 1994, and that strike lasted for 232 days. The current strike has been going on for 31 days, and there is no end in sight. The owners and the players are both to blame for the current state of Major League Baseball.
How the COVID-19 pandemic has affected baseball
The COVID-19 pandemic has had a profound effect on Major League Baseball. The 2020 season was put on hold in March due to the pandemic, and although there have been some discussions about potentially resuming the season in the summer, it remains unclear whether or when that will happen. In the meantime, the pandemic has caused widespread financial hardships for MLB teams and players, and it remains to be seen how these hardships will impact the future of baseball.
The financial state of baseball
Players and owners are at an impasse over how to share the game’s $9 billion in annual revenue.The average major league salary was $4.5 million last year, and the union wants players to receive larger annual raises than the owners’ proposal of 1% to 2% of salaries. Players’ salaries totaled $400 million last year, while revenue sharing and luxury taxes on high-payroll teams generated about $250 million that was used to reduce payroll disparity.The union also is seeking greater protection for older players in multiyear contracts and more say in baseball’s drug-testing program.
The history of baseball strikes
Baseball has a long and storied history, fraught with many problems and issues. One of the most significant and controversial issues has been the number of times that the players have gone on strike. This act, while understandable given the working conditions and other problems, has often led to a great deal of acrimony between the players and the owners.
The 1994-1995 baseball strike
The 1994-1995 baseball strike was a labor dispute that lasted 232 days and caused the cancellation of 948 games, as well as the 1994 World Series. It was the longest work stoppage in baseball history and led to the cancellation of the World Series for the first time since 1904.
The dispute began on August 12, 1994, when the Major League Baseball Players Association (MLBPA) went on strike after failed negotiations over a new collective bargaining agreement (CBA). The owners had proposed a salary cap, which would have limited player salaries, while the MLBPA was seeking free agency for all players after four years of service.
The strike ended on April 2, 1995, when a new CBA was reached. The MLBPA gained free agency for all players after six years of service, while the owners gained a revenue sharing system and a luxury tax. Although both sides claimed victory, the long-term effects of the strike were damaging to baseball. Attendance declined sharply in 1995 and television ratings remained low into the 2000s.
The 2002 baseball strike
On September 16, 2002, the Major League Baseball Players Association went on strike, causing the first work stoppage in baseball since 1972. The strike lasted for 32 days, causing the cancellation of 948 games and resulting in the loss of $580 million in revenue.
The main issue at stake was how to divide the league’s $3.6 billion in annual revenue between the owners and players. The players were unhappy with the current system, which saw them receiving just over 50% of total revenue. The owners were reluctant to give up any more of their share, especially given that they had just agreed to give the players a larger share of revenue from local television contracts.
Ultimately, it was the threat of further economic damage that led to a compromise between the two sides. In January 2003, they reached an agreement that would see the players receive between 47% and 49% of total revenue, depending on certain conditions. This agreement ended the 2002 baseball strike and led to a resurgence in popularity for the sport.
The potential for a baseball strike in 2020
The economic state of baseball
The most recent MLB strike happened in 1994 and lasted for 232 days, ending the 1994 season. Players were striking over the treatment of free agents and salary caps. This strike was different from previous strikes in that the playoffs and World Series were cancelled. In total, 938 games were lost.
The average MLB salary in 2020 is $4 million, but the highest-paid player, Mike Trout, will make $37 million. The Los Angeles Dodgers have the highest payroll in baseball at $198 million. The Houston Astros have the lowest payroll at $85 million.
MLB generated $10.3 billion in revenue in 2019, which is a new record. However, attendance has been declining for years and was down to 68 million in 2019, which is the lowest since 2003. Television ratings are also down. One reason for this decline is that baseball games take too long to play; the average game time was 3:05 in 2019, up from 2:46 in 1981.
Given these factors, it’s not surprising that there is talk of a strike happening in 2020. The players are not happy with their current salaries and treatment, and they want a bigger slice of the pie. The owners are not happy with declining attendance and ratings, and they want to cut costs. It’s going to be interesting to see how this plays out.
The financial state of the MLBPA
As the MLBPA and Major League Baseball negotiate a new collective bargaining agreement, the potential for a strike in 2020 looms. If the two sides cannot come to an agreement on key financial issues, the baseball world could be in for another long and costly labor dispute.
At the heart of the negotiation is the revenue sharing arrangement between the MLBPA and MLB. Currently, the MLBPA receives a fixed percentage of MLB’s total revenue. However, with baseball’s popularity waning in recent years and revenues stagnating, the MLBPA is looking for a greater share of baseball’s pie. The MLB, on the other hand, is hesitant to give up any more of its revenue, especially as it looks to address its own financial woes.
While both sides have valid points, it seems likely that a compromise will be reached before any sort of work stoppage occurs. However, with both sides dug in on their respective positions, it is impossible to say for sure what will happen in the coming months.
The possibility of a lockout
With the COVID-19 pandemic putting a halt to the 2020 MLB season, it is possible that the 2021 season could be in jeopardy as well. The potential for a baseball strike in 2020 is real, as the MLB Players Association and owners have not been able to come to an agreement on financial terms for a shortened season. If the two sides are unable to reach an agreement, there could be a lockout of players, which would put the 2021 season in jeopardy.