Why Are Baseball Players On Strike?

The baseball players’ strike of 1994 was a turning point in the history of the sport. The players were fighting for better wages and working conditions, and the owners were unwilling to budge. Ultimately, the strike led to the cancellation of the World Series and cost the players dearly. In this blog post, we’ll take a look at why the players went on strike and what the consequences were.

History of Baseball Unions

Baseball players have been unionizing since the late 1800s in order to negotiate better contracts with team owners. The first baseball union, the Brotherhood of Professional Base Ball Players, formed in 1885. Players struck in 1901, 1972, and 1981. The 1994-1995 strike, which lasted 232 days, led to the cancellation of the World Series.

Early Unions

In 1885, the first professional baseball players’ union was founded, called the Brotherhood of Professional Base Ball Players. The league owners had responded to the players forming a union by increasing salaries and promising other benefits, such as pensions. But after the first season under the new collective bargaining agreement, the owners broke their promises and reverted back to the old system. The players went on strike mid-season in 1890, but eventually gave in and agreed to play for the low salaries once again. In 1900, another professional baseball union was formed, this time called the National Association of Professional Baseball Players (NAPBBP). This union was also short-lived; it dissolved in late 1901 after failing to get the League to agree to higher salaries or a split of gate receipts.

The MLBPA

The Major League Baseball Players Association (MLBPA) is the union that represents major league baseball players. It was founded in 1954 and has been involved in several high-profile disputes with Major League Baseball. The most recent dispute, which began in 1994, led to a player strike that cancelled the remainder of the 1994 season and the entire 1995 season.

The Current Collective Bargaining Agreement

The last time Major League Baseball saw a strike was in 1994, and it cost the league nearly a whole season. Players were upset about the way team owners were treating them, and they wanted a better collective bargaining agreement. The current collective bargaining agreement expires in 2021, and both the players and the owners are already preparing for another strike.

The Owners’ Proposal

The owners’ proposal that led to the 1994-95 baseball strike was for a salary cap, which would have limited the amount of money that teams could spend on salaries. The proposal also included a provision that would have allowed teams to continue to pay players who were injured and could not play, known as “disabled list reserve.” In addition, the owners wanted to increase the length of player contracts from three years to four or five years. Finally, the proposal called for a luxury tax on teams with high payrolls, which would have been used to fund player benefits and revenue sharing.

The Players’ Proposal

On August 30, the MLBPA submitted their most recent proposal to the owners in hopes of jump-starting negotiations and avoiding a strike. The proposal included a 114-game season (down from 162), full prorated salaries, and expanded playoffs. Notably, the proposal did not include any of the salary deferral or salary reduction measures that the owners had wanted. In response, the owners stated that they were “disappointed” with the proposal and did not feel that it was a “serious effort.”

The Sticking Points

Baseball players are on strike because they want more money. They are not happy with the current salary cap and want to be able to negotiate their own salaries. The owners are not happy with this and are not willing to budge on the salary cap. This is causing a stalemate between the two sides.

Revenue Sharing

Players and owners have long disagreed about how to split up baseball’s revenues, which totaled $9 billion last year. In the most recent collective bargaining agreement, which was agreed upon in 2016, players received approximately 54% of baseball’s total revenues.

Owners have proposed increasing that number to as high as 58%, while the players’ union has countered that they are willing to accept a 52% split. The sticking point, then, is a mere six percentage points.

However, given that the players’ share of revenues has steadily decreased over the years — it was close to 66% in 2003 — it’s no wonder that they are unwilling to accept any further reductions.

The Luxury Tax

In general, a salary cap is put in place to ensure that teams don’t spend too much money on player salaries, and to create a level playing field between teams. Major League Baseball has had a luxury tax in place since the early 2000s, and it’s one of the main sticking points in the current negotiations.

The luxury tax is currently set at $210 million. Any team that spends over that amount on player salaries has to pay a penalty (or “luxury tax”) to the league. That money is then distributed evenly among all of the teams that stay under the threshold.

The owners want to increase the luxury tax threshold to $250 million, while the players are reportedly opposed to any increase. The owners argue that the extra revenue will help small-market teams compete, while the players say that it will just line the owners’ pockets and do nothing to help improve player salaries.

Free Agency

The main sticking point between the owners and players is free agency. In free agency, players are free to sign with any team they choose after their current contract expires. The owners would like to see a system where players are tied to their team for a certain number of years, similar to the NFL or NBA. The players Association is unwilling to budge on this issue, as they believe that free agency is the best way to ensure that players are paid what they are worth.

What’s Next?

The 1994 Major League Baseball strike was a work stoppage that lasted from August 12, 1994 to April 2, 1995. It was the eighth work stoppage in baseball history, as well as the fourth in-season work stoppage in 22 years. The strike began on August 12, 1994 and ended on April 2, 1995, lasting 232 days and causing the cancellation of 948 games.

A New CBA

The current collective bargaining agreement between Major League Baseball and the MLBPA expires on December 1st, 2021. Both sides have been in negotiations for a new deal, but so far they have been unable to agree on terms. The main sticking points seem to be economic, with the players seeking a larger share of baseball’s revenue and the owners unwilling to give up too much of their profits. If a new deal is not reached, it is possible that the 2022 season could be affected by a players’ strike.

A Strike

The upcoming baseball strike is a negotiations between team owners and the Major League Baseball Players Association (MLBPA) to see how the players will be paid.

The average annual salary for a MLB player was $4.47 million in 2019, according to FanGraphs – though this is largely skewed by a few top-earning stars. The median salary was actually $1.25 million. Many argue that the players are underpaid compared to other professional athletes, such as those in the NBA where the average salary is $7.4 million.

The league has been making record profits in recent years, so the Players Association is asking for a larger percentage of that revenue. They also want changes to the way young players are paid and recruited, as well as more say in team decisions – such as trades and free agency.

The owners have offered a 70-72% split of revenue, but the MLBPA has countered with a 75% split. If an agreement isn’t reached by December 1st, there will be a strike – which would be the first since 1994 when games were cancelled for the remainder of the season.

A Lockout

As we’ve been telling you, the players and owners can’t agree on how to divide up the billions of dollars in revenue they bring in each year. The last time they couldn’t agree, the 1994 baseball season was canceled. Could that happen again?

The short answer is: maybe. If the owners don’t budge, the Players Association could vote to go on strike. That would mean no baseball until an agreement is reached.

The last time there was a strike, in 1994, it lasted 232 days and cost the owners an estimated $1 billion. The players lost about $280 million in salary.