Is Baseball Contraction Back on the Table?
Remember Contraction? The prospect that baseball may simply contract and eliminate two teams as a solution to those teams' stadium and financial problems has reared its ugly head once again. There is a significant difference this time. The issue was not raised by Bud Selig in threatening a city during negotiations for a new stadium. Oh no, this time it was raised by the Governor of Minnesota as a threat in a battle over a stadium for the Twins.
Governor Tim Pawlenty raised contraction as a real possibility for the Twins and the Florida Marlins as he met with Twins officials and Minnesota political leaders to discuss the prospects for state financing of a new stadium for the Twins. The Marlins, of course, are now in the midst of a seven city search for a possible relocation since negotiations for a new stadium in Miami have fallen apart and the prospects for a deal in South Florida appear remote.
The timing is fortuitous for contraction as the collective bargaining agreement with Major League Baseball Players Association expires after this season. The basic agreement contains a provision obligated the players not to contest the contraction of two teams and obligating MLB to bargain over its effects. The decision would have to be made and communicated to the players by July 1.
Making it easier for MLB to contract two clubs is the upcoming sale of the Washington Nationals. The anticipated sales price is expected to be in excess of $450 million, leaving the clubs with almost the exact amount needed to pay off the owners of both the Twins and the Marlins. Then, the savings from revenue sharing and the larger cut of broadcast and MLBAM revenue would begin to accrue immediately to the rest of the clubs.
This time, if stadium deals cannot be put together in the next few months, the financial benefits to the rest of baseball may be too good to pass up. With the Basic Agreement expiring and MLBPA likely to bargain hard on the possibility of contraction, the timing is right for it happen, if it is ever going to occur. The owners know it is unlikely that contraction will make it into the Basic Agreement without a significant cost. The pressure in Minnesota for a stadium will be intense for the next couple of months as it now looks as if the Twins are the only team in the Twin Cities that are not getting a new stadium. If that is true when summer rolls around, and if the Marlins haven't made a deal in South Florida, look for the discussion of contraction to turn serious and public. Until then, it is likely that Selig and baseball will say nothing to keep opposition from surfacing until it's too late to do any good.
Governor Tim Pawlenty raised contraction as a real possibility for the Twins and the Florida Marlins as he met with Twins officials and Minnesota political leaders to discuss the prospects for state financing of a new stadium for the Twins. The Marlins, of course, are now in the midst of a seven city search for a possible relocation since negotiations for a new stadium in Miami have fallen apart and the prospects for a deal in South Florida appear remote.
The timing is fortuitous for contraction as the collective bargaining agreement with Major League Baseball Players Association expires after this season. The basic agreement contains a provision obligated the players not to contest the contraction of two teams and obligating MLB to bargain over its effects. The decision would have to be made and communicated to the players by July 1.
Making it easier for MLB to contract two clubs is the upcoming sale of the Washington Nationals. The anticipated sales price is expected to be in excess of $450 million, leaving the clubs with almost the exact amount needed to pay off the owners of both the Twins and the Marlins. Then, the savings from revenue sharing and the larger cut of broadcast and MLBAM revenue would begin to accrue immediately to the rest of the clubs.
This time, if stadium deals cannot be put together in the next few months, the financial benefits to the rest of baseball may be too good to pass up. With the Basic Agreement expiring and MLBPA likely to bargain hard on the possibility of contraction, the timing is right for it happen, if it is ever going to occur. The owners know it is unlikely that contraction will make it into the Basic Agreement without a significant cost. The pressure in Minnesota for a stadium will be intense for the next couple of months as it now looks as if the Twins are the only team in the Twin Cities that are not getting a new stadium. If that is true when summer rolls around, and if the Marlins haven't made a deal in South Florida, look for the discussion of contraction to turn serious and public. Until then, it is likely that Selig and baseball will say nothing to keep opposition from surfacing until it's too late to do any good.
posted by Mark at 11:16 AM
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