By Sam Bush
Agent Scott Boras recommends that his 71 clients refuse Major League Baseball’s attempt to cut salaries during negotiations with the players’ union, 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 Major League Baseball Players Association 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.”