1 00:00:00,520 --> 00:00:04,120 Speaker 1: This is Bloomberg Business of Sports. COVID has been so 2 00:00:04,320 --> 00:00:07,680 Speaker 1: devastating and to see thirty eight thousand people of Henry 3 00:00:07,760 --> 00:00:11,960 Speaker 1: Park it was really emotional and rewardings on the business side, 4 00:00:12,119 --> 00:00:15,720 Speaker 1: from ticket sales to jersey sale, the revenues are up. 5 00:00:15,800 --> 00:00:17,599 Speaker 1: Everything was really good as well as solids there. I 6 00:00:17,680 --> 00:00:20,639 Speaker 1: realized that at the beginning of nineteen would be a 7 00:00:20,760 --> 00:00:23,720 Speaker 1: very unique opportunity in terms of a lot of contracts 8 00:00:23,760 --> 00:00:25,479 Speaker 1: being up at the same time and a lot of 9 00:00:25,560 --> 00:00:28,000 Speaker 1: deciding young wrestlers being available to go out and start 10 00:00:28,000 --> 00:00:31,479 Speaker 1: a wrestling company. The country is finally deeply getting the 11 00:00:31,520 --> 00:00:34,199 Speaker 1: memo about how amazing the sport is. I think the 12 00:00:34,240 --> 00:00:37,440 Speaker 1: sky's a limit for MLS. Bloomberg Business of Sports from 13 00:00:37,520 --> 00:00:41,960 Speaker 1: Bloomberg Radio. This is the Bloomberg Business of Sports show, 14 00:00:42,000 --> 00:00:44,560 Speaker 1: where we explore the big money issues in the world 15 00:00:44,560 --> 00:00:48,000 Speaker 1: of sports. I'm Michael barn you, I'm Michaelin coming up today, 16 00:00:48,120 --> 00:00:52,120 Speaker 1: Action Packs, We'll be covering the Major League Baseball lockout. 17 00:00:52,440 --> 00:00:56,840 Speaker 1: Earlier this week, major League Baseball's collective barning agreement expired, 18 00:00:57,160 --> 00:00:59,680 Speaker 1: and we're going to break the situation down with MLB 19 00:01:00,040 --> 00:01:04,840 Speaker 1: network analysts and insider John Morrossi and sports lawyer Martin Edel. 20 00:01:05,120 --> 00:01:07,559 Speaker 1: But first let's look at some of the other top 21 00:01:07,640 --> 00:01:11,959 Speaker 1: stories of the week, beginning with, of course, the MLB lockout. Lynchy, 22 00:01:12,000 --> 00:01:15,080 Speaker 1: I don't get Some people said, man, how could you 23 00:01:15,120 --> 00:01:19,119 Speaker 1: not see this coming? Uh? And my answer is because 24 00:01:19,240 --> 00:01:23,760 Speaker 1: I didn't think the league would want to do something 25 00:01:23,840 --> 00:01:27,720 Speaker 1: like this after you just came off of COVID. I agree, 26 00:01:27,800 --> 00:01:31,560 Speaker 1: that's something we've been talking about since since COVID was started, 27 00:01:31,560 --> 00:01:36,080 Speaker 1: and they played a sixty game schedule in and well, 28 00:01:36,080 --> 00:01:37,720 Speaker 1: this day will never come. It so day you're sort 29 00:01:37,760 --> 00:01:40,640 Speaker 1: of fear we'll we'll, we'll never arrive, something will be resolved, 30 00:01:40,760 --> 00:01:43,640 Speaker 1: or there'll be an extension of the talks. But it 31 00:01:43,760 --> 00:01:46,800 Speaker 1: just didn't happen. And um, I I go back to 32 00:01:48,600 --> 00:01:51,200 Speaker 1: I pulled out an old Sports Illustrated and the headline 33 00:01:51,280 --> 00:01:54,240 Speaker 1: was to walk out the owners provoked, And I wonder 34 00:01:54,280 --> 00:01:56,400 Speaker 1: what the headline would be on this work stop. It's 35 00:01:56,480 --> 00:01:58,200 Speaker 1: right here. Would it be blaming the owners again or 36 00:01:58,240 --> 00:02:02,640 Speaker 1: would be the players take it fast forward? As many 37 00:02:02,640 --> 00:02:05,840 Speaker 1: people have talked about. I hate to say it, but 38 00:02:06,240 --> 00:02:10,160 Speaker 1: there if you're seven and younger, you don't remember what 39 00:02:10,400 --> 00:02:15,120 Speaker 1: happened during that work stoppage. No World Series. It was 40 00:02:15,160 --> 00:02:18,800 Speaker 1: a disaster, Yeah, it was. It was an empty feeling 41 00:02:18,840 --> 00:02:23,920 Speaker 1: because baseball. I know the enormous popularity of football, but 42 00:02:24,040 --> 00:02:28,320 Speaker 1: baseball has always been America's game, and the World Series 43 00:02:28,400 --> 00:02:30,920 Speaker 1: is as Americana as you can get, and to not 44 00:02:31,000 --> 00:02:33,280 Speaker 1: have a World Series really just ripped the gut out 45 00:02:33,280 --> 00:02:35,760 Speaker 1: of a lot of people in this country. Another topic 46 00:02:35,960 --> 00:02:39,080 Speaker 1: that's in the news, the Women's Tennis Tour says it 47 00:02:39,120 --> 00:02:42,840 Speaker 1: will not stage tournaments in China, including Hong Kong, over 48 00:02:42,840 --> 00:02:46,840 Speaker 1: the treatment of tennis star Ping Schwa. She's pretty much 49 00:02:46,840 --> 00:02:50,600 Speaker 1: disappeared Lynchi from public life after she accused the top 50 00:02:50,639 --> 00:02:53,680 Speaker 1: Communist party leader of sexual assault. You know, China doesn't 51 00:02:53,680 --> 00:02:56,200 Speaker 1: take very well to threats, as we know. Um when 52 00:02:56,280 --> 00:02:58,560 Speaker 1: Enus Cantor, who now has changed his last name to 53 00:02:58,639 --> 00:03:03,000 Speaker 1: Enus Cantor Freedom, criticized human rights in China, they pulled 54 00:03:03,000 --> 00:03:06,320 Speaker 1: all the Celtics games from their streaming services. And I 55 00:03:06,880 --> 00:03:10,120 Speaker 1: think this will have no effect on the party and 56 00:03:10,160 --> 00:03:12,560 Speaker 1: the and the rulers in China. Well, what scares me 57 00:03:12,600 --> 00:03:15,800 Speaker 1: about this is that here you saw her. The last 58 00:03:15,840 --> 00:03:19,200 Speaker 1: time we saw her in public was in the video 59 00:03:19,280 --> 00:03:22,960 Speaker 1: last month of video conference with the International Olympic Committee 60 00:03:23,400 --> 00:03:26,560 Speaker 1: and the way she was talking, everything's fine, don't worry 61 00:03:26,560 --> 00:03:28,680 Speaker 1: about it. Thank you all for checking on me, and 62 00:03:28,880 --> 00:03:31,480 Speaker 1: peace and love and see you later. That scares me 63 00:03:31,520 --> 00:03:35,400 Speaker 1: even more because nobody else has been able to get 64 00:03:35,400 --> 00:03:37,839 Speaker 1: a hold of her. Yeah, it seems like a propaganda 65 00:03:37,920 --> 00:03:40,760 Speaker 1: campaign of coming out of China right now and that 66 00:03:41,240 --> 00:03:43,760 Speaker 1: I feel bad for her. I feel for her safety. 67 00:03:44,160 --> 00:03:46,440 Speaker 1: And it's a great strong move by by the w 68 00:03:46,560 --> 00:03:48,280 Speaker 1: t A out of China and out of Hong Kong 69 00:03:48,320 --> 00:03:52,240 Speaker 1: as well. Let's get to uh let's call it the 70 00:03:52,280 --> 00:03:57,040 Speaker 1: coach's Roulette show. This has been one of the wildest 71 00:03:58,200 --> 00:04:03,280 Speaker 1: silly seasons for coaches moving about in college football that 72 00:04:03,400 --> 00:04:06,680 Speaker 1: I've seen in a long time. Notre Dame's Brian Kelly. 73 00:04:06,760 --> 00:04:10,440 Speaker 1: He was hired by Louisiana State University, no longer with 74 00:04:10,680 --> 00:04:14,520 Speaker 1: Notre Dame. He got a ten year contract reportedly worth 75 00:04:14,520 --> 00:04:18,760 Speaker 1: one million dollars. Now, when we last checked with Kelly 76 00:04:18,839 --> 00:04:22,120 Speaker 1: and he was the coach of the Fighting Irish, he 77 00:04:22,240 --> 00:04:25,680 Speaker 1: said something to the effect of, well, unless the fairy 78 00:04:25,760 --> 00:04:29,359 Speaker 1: god Mother comes with two fifty million dollars, I'm here 79 00:04:29,920 --> 00:04:33,400 Speaker 1: for the Fighting Irish. Well, I guess that wand waved 80 00:04:33,600 --> 00:04:37,000 Speaker 1: because now he's with l. S. H Lynchi. Yeah, and 81 00:04:37,080 --> 00:04:39,440 Speaker 1: he's the first Notre Dame coach to ever leave Notre 82 00:04:39,520 --> 00:04:42,559 Speaker 1: Dame for another job. Now that the coaches have left 83 00:04:42,560 --> 00:04:45,680 Speaker 1: and then eventually had had taken another job, or but 84 00:04:45,760 --> 00:04:48,279 Speaker 1: we're dismissed by Notre Dame. But to voluntarily leave and 85 00:04:48,320 --> 00:04:52,120 Speaker 1: take another job, it's shocking. Notre Dame has always been 86 00:04:52,360 --> 00:04:56,000 Speaker 1: a destination and a final destination for head coaches throughout 87 00:04:56,040 --> 00:04:57,800 Speaker 1: the throughout the years. I mean you all the way 88 00:04:57,800 --> 00:05:01,080 Speaker 1: back to Newton Rockney. So he's gone there and Lincoln Riley, 89 00:05:01,680 --> 00:05:06,200 Speaker 1: you know who, it's the Wonders at Oklahoma. He bolts 90 00:05:06,240 --> 00:05:09,240 Speaker 1: for Southern cal. So this this is like the strangest 91 00:05:09,279 --> 00:05:12,240 Speaker 1: offseason I've ever seen for coaches. And I feel bad 92 00:05:12,320 --> 00:05:15,560 Speaker 1: for the players they lift behind. That's number one. It 93 00:05:15,600 --> 00:05:17,920 Speaker 1: happens all the time. But the recruits that were promised 94 00:05:18,480 --> 00:05:21,000 Speaker 1: that the coach would be there, come play for Oklahoma, 95 00:05:21,000 --> 00:05:23,400 Speaker 1: come play for Notre Dame. And you know, now, what 96 00:05:23,440 --> 00:05:25,800 Speaker 1: do you do? You're seventeen, eighteen years old. It's a 97 00:05:25,800 --> 00:05:28,400 Speaker 1: confusing time in your life. But enough of a confusing time, 98 00:05:28,400 --> 00:05:30,280 Speaker 1: and and this sort of muddles things a little bit 99 00:05:30,279 --> 00:05:33,359 Speaker 1: more Now, according to the chatter, the rumor mill, Lincoln 100 00:05:33,480 --> 00:05:37,599 Speaker 1: Riley when he was hired by USC, he got the 101 00:05:37,760 --> 00:05:44,320 Speaker 1: one million dollars. Also, Riley had two homes in Oklahoma, 102 00:05:44,640 --> 00:05:49,120 Speaker 1: and he's going to get a five hundred thousand dollars 103 00:05:49,320 --> 00:05:55,160 Speaker 1: each home bonus above the asking price. And then according 104 00:05:55,200 --> 00:05:57,000 Speaker 1: to the rumor mill, he's going to get a six 105 00:05:57,040 --> 00:06:02,200 Speaker 1: million dollar home provided by US. And then he's going 106 00:06:02,279 --> 00:06:05,480 Speaker 1: to get the private jet so he and his family 107 00:06:05,520 --> 00:06:09,000 Speaker 1: can use it. Twenty four seven. I think we get 108 00:06:09,040 --> 00:06:13,080 Speaker 1: free food here at Bloomberg, but that's about it. We 109 00:06:13,120 --> 00:06:15,479 Speaker 1: don't get any free planes, Lyndi. You know, it's like 110 00:06:15,520 --> 00:06:19,760 Speaker 1: all these these fiction movies that you see on television 111 00:06:19,760 --> 00:06:23,120 Speaker 1: about you know, Texas State and Big State University and 112 00:06:23,320 --> 00:06:25,960 Speaker 1: all the things that they're doing wrong. It's like this 113 00:06:26,040 --> 00:06:28,360 Speaker 1: is it's it's reality now, and it's that it used 114 00:06:28,360 --> 00:06:30,480 Speaker 1: to be behind the scenes now it's front and center. 115 00:06:30,839 --> 00:06:33,720 Speaker 1: I mean, this is really just for those people who 116 00:06:33,720 --> 00:06:36,599 Speaker 1: are cynical about college athletics. So this is not not 117 00:06:36,680 --> 00:06:41,760 Speaker 1: a good look. Obviously. Major League Baseball and the work 118 00:06:41,839 --> 00:06:45,920 Speaker 1: stoppage is the big topic, and we're talking with MLB 119 00:06:46,160 --> 00:06:50,200 Speaker 1: network insider John Morrossi. John my goodness, I guess you 120 00:06:50,279 --> 00:06:52,880 Speaker 1: are a very busy man right now. Thank you for 121 00:06:52,960 --> 00:06:55,520 Speaker 1: joining us, Michael and Mica. Always a pleasure to speak 122 00:06:55,520 --> 00:06:58,039 Speaker 1: with you both, even though as you point out that 123 00:06:58,120 --> 00:07:00,520 Speaker 1: today is perhaps not the happiest day that we have 124 00:07:00,520 --> 00:07:04,640 Speaker 1: seen a recent baseball history. But nonetheless I'm still optimistic 125 00:07:04,680 --> 00:07:06,840 Speaker 1: that will see the game back on the field here 126 00:07:06,920 --> 00:07:09,480 Speaker 1: this spring. Well, I guess my first question is how 127 00:07:09,520 --> 00:07:11,240 Speaker 1: in the world do we get to this point in 128 00:07:11,280 --> 00:07:15,480 Speaker 1: the first place. Well, that's an excellent question, because obviously 129 00:07:15,520 --> 00:07:19,160 Speaker 1: we've seen nearly two billion dollars spent as an industry 130 00:07:19,200 --> 00:07:22,840 Speaker 1: on players in the last month, which one could interpret, 131 00:07:23,080 --> 00:07:26,440 Speaker 1: I think correctly, as being evidence of pretty strong health 132 00:07:26,520 --> 00:07:29,800 Speaker 1: overall in the game. But there has been I think 133 00:07:29,840 --> 00:07:32,280 Speaker 1: for a number of years now, some discontent among the 134 00:07:32,280 --> 00:07:36,000 Speaker 1: players regarding free agency and and the way that players 135 00:07:36,000 --> 00:07:39,120 Speaker 1: have been paid at different points in their career, And 136 00:07:39,160 --> 00:07:43,720 Speaker 1: really now there their issues are in their proposals have 137 00:07:43,920 --> 00:07:48,000 Speaker 1: been to allow salary arbitration at an earlier age, so 138 00:07:48,400 --> 00:07:50,960 Speaker 1: after two years of service time as opposed to three, 139 00:07:51,280 --> 00:07:54,160 Speaker 1: and then free agency after five years of service instead 140 00:07:54,200 --> 00:07:58,360 Speaker 1: of six. These are fairly dramatic changes in the in 141 00:07:58,400 --> 00:08:01,679 Speaker 1: the overall business that base small and Commissioner Rob Manford 142 00:08:01,680 --> 00:08:05,560 Speaker 1: said Thursday that especially as it relates to earlier free agency, 143 00:08:06,240 --> 00:08:09,560 Speaker 1: it really does change the competitive nature for teams when 144 00:08:09,560 --> 00:08:12,880 Speaker 1: you consider smaller market teams who are unable in many 145 00:08:12,920 --> 00:08:16,080 Speaker 1: cases to afford superstar players as they get older. One 146 00:08:16,120 --> 00:08:19,120 Speaker 1: could use the Cleveland Guardians as an example, uh that 147 00:08:19,120 --> 00:08:22,000 Speaker 1: that exacerbates that issue and forces teams to make that 148 00:08:22,080 --> 00:08:25,200 Speaker 1: decision even earlier. So it really there are a lot 149 00:08:25,240 --> 00:08:28,280 Speaker 1: of key economic issues out there on the on the 150 00:08:28,320 --> 00:08:31,360 Speaker 1: bargaining table, but it really did not appear Michael and 151 00:08:31,400 --> 00:08:33,920 Speaker 1: Mike with the sides got close at all this week. 152 00:08:33,960 --> 00:08:36,760 Speaker 1: There were proposals made by mlbist but there was not 153 00:08:37,040 --> 00:08:40,959 Speaker 1: any progress meaningfully made. And so now we're in baseball's 154 00:08:40,960 --> 00:08:43,240 Speaker 1: first work stoppage and a quarter century. Well, John, you 155 00:08:43,280 --> 00:08:47,120 Speaker 1: brought up MLB Commissioner Rob Menfred and what he had 156 00:08:47,160 --> 00:08:49,840 Speaker 1: to say about this work stoppage. Let's listen to what 157 00:08:49,880 --> 00:08:53,480 Speaker 1: he had to say to ling Um. The lockout once 158 00:08:53,559 --> 00:08:58,640 Speaker 1: the contract expires gets complicated legally, and frankly, from our perspective, 159 00:08:59,240 --> 00:09:02,839 Speaker 1: we wanted to move the process now because we want 160 00:09:02,880 --> 00:09:07,280 Speaker 1: an agreement now for our fans. Commissioner Manfred said that 161 00:09:07,720 --> 00:09:11,400 Speaker 1: they made the mistake in starting the season without a 162 00:09:11,679 --> 00:09:15,480 Speaker 1: collective bargaining agreement and we will not make that mistake again. 163 00:09:16,120 --> 00:09:19,000 Speaker 1: It sounds like the ownership is digging in their heels. 164 00:09:19,040 --> 00:09:25,440 Speaker 1: There's no chance that they'll play pending up an agreement. Correct, Mike, 165 00:09:25,760 --> 00:09:28,120 Speaker 1: I think you're exactly right there. The only way this 166 00:09:28,160 --> 00:09:31,360 Speaker 1: season begins on time is if there is a new 167 00:09:31,480 --> 00:09:35,920 Speaker 1: cb A that that includes UH fully, really fully and 168 00:09:36,000 --> 00:09:39,160 Speaker 1: comprehensibly dealt with these questions that are at the forefront 169 00:09:39,160 --> 00:09:42,080 Speaker 1: of everybody's mind. That they are not going to simply 170 00:09:42,120 --> 00:09:43,880 Speaker 1: have a renewal of the current cy b A and 171 00:09:44,000 --> 00:09:47,200 Speaker 1: and go into a season without one, because that would 172 00:09:47,200 --> 00:09:49,960 Speaker 1: set up the possibility for a strike and UH, and 173 00:09:50,080 --> 00:09:54,000 Speaker 1: the commissioner says, under no circumstances can baseball countenance that 174 00:09:54,080 --> 00:09:57,040 Speaker 1: sort of issue. So I I do think, And one 175 00:09:57,040 --> 00:09:59,040 Speaker 1: of the key things the Commissioner said at the close 176 00:09:59,080 --> 00:10:04,400 Speaker 1: of his remarks was that he is disappointed but not frustrated. 177 00:10:04,760 --> 00:10:07,760 Speaker 1: And I think that was a very important distinction. He certainly, 178 00:10:07,800 --> 00:10:10,880 Speaker 1: as he said, MLB officials came here to make a deal. 179 00:10:11,280 --> 00:10:14,480 Speaker 1: Um speaking of course, here from the ballpark in Arlington, Uh, 180 00:10:14,600 --> 00:10:16,120 Speaker 1: they came here to make a deal and did not, 181 00:10:16,240 --> 00:10:19,120 Speaker 1: so on that level, it was disappointing, but they are 182 00:10:19,160 --> 00:10:22,280 Speaker 1: not frustrated because they understand that the lockout is, as 183 00:10:22,280 --> 00:10:25,840 Speaker 1: they're describing it, a defensive mechanism to bring about the 184 00:10:26,000 --> 00:10:30,520 Speaker 1: conversations in the coming months that will be necessary for 185 00:10:30,640 --> 00:10:33,120 Speaker 1: there to be a new c b A. And I 186 00:10:33,440 --> 00:10:35,680 Speaker 1: think there's still a lot of optimism around the game 187 00:10:36,080 --> 00:10:38,840 Speaker 1: that we will see the game back on the field 188 00:10:39,000 --> 00:10:42,040 Speaker 1: by February or perhaps marched the latest, and that we're 189 00:10:42,040 --> 00:10:45,079 Speaker 1: not going to see any any regular season games loss 190 00:10:45,120 --> 00:10:47,840 Speaker 1: that it's important to point out we're still fully four 191 00:10:47,880 --> 00:10:49,959 Speaker 1: months away from the start of the regular season. That 192 00:10:50,040 --> 00:10:52,920 Speaker 1: as an eternity in the world of collective bargaining. And 193 00:10:52,960 --> 00:10:56,000 Speaker 1: the commissioner said that he believes that they did glean 194 00:10:56,120 --> 00:10:58,679 Speaker 1: some new information, new insights on what the players are 195 00:10:58,679 --> 00:11:01,360 Speaker 1: looking for. I would think that one of the more 196 00:11:01,400 --> 00:11:04,240 Speaker 1: remarkable things that were that was proposed. Actually, I'll point 197 00:11:04,240 --> 00:11:06,920 Speaker 1: out two things. Number one, the removal of draft pick 198 00:11:06,960 --> 00:11:10,760 Speaker 1: compensation for free agency, which is a huge impediment or 199 00:11:10,760 --> 00:11:13,439 Speaker 1: at least has been here in recent years. UH two 200 00:11:13,480 --> 00:11:16,760 Speaker 1: teams spending. That is a significant issue as the Commissioner 201 00:11:16,840 --> 00:11:19,240 Speaker 1: said that, in fact, was the grounding of a of 202 00:11:19,280 --> 00:11:22,200 Speaker 1: a strike the grounds of a strike back in so 203 00:11:22,600 --> 00:11:25,720 Speaker 1: for the players to not have to worry about their 204 00:11:25,840 --> 00:11:29,240 Speaker 1: value being affected by being tied to a draft pick 205 00:11:29,360 --> 00:11:32,840 Speaker 1: is a very very significant issue and one that I 206 00:11:32,880 --> 00:11:35,880 Speaker 1: think will actually help hopefully a deal get made. The 207 00:11:35,920 --> 00:11:40,600 Speaker 1: other part is a minimum payroll, a salary floor, if 208 00:11:40,600 --> 00:11:43,200 Speaker 1: you will, So not a salary cap, but a salary floor, 209 00:11:43,520 --> 00:11:45,880 Speaker 1: a minimum buy in, if you will. From from the 210 00:11:45,920 --> 00:11:50,520 Speaker 1: standpoint of teams, that is a very significant, I think 211 00:11:50,600 --> 00:11:53,240 Speaker 1: development here because a lot of the issues that we 212 00:11:53,320 --> 00:11:55,840 Speaker 1: see from a team, for example, like the Cleveland Guardians 213 00:11:55,880 --> 00:11:59,160 Speaker 1: whom I mentioned, not being able to spend or not 214 00:11:59,160 --> 00:12:02,280 Speaker 1: being able to compete. Rather with their current payroll, you 215 00:12:02,360 --> 00:12:04,760 Speaker 1: now have no choice. You have to spend a hundred 216 00:12:04,760 --> 00:12:07,840 Speaker 1: billion dollars a year if the proposal is accepted, which 217 00:12:07,880 --> 00:12:11,400 Speaker 1: I think would allow more of the hometown players to 218 00:12:11,559 --> 00:12:14,280 Speaker 1: remain with their current teams as opposed to being traded 219 00:12:14,320 --> 00:12:18,319 Speaker 1: away a year or two before they become free agents. Well, 220 00:12:18,480 --> 00:12:21,840 Speaker 1: I'm disappointed and frustrated, and I have to tell you 221 00:12:21,880 --> 00:12:25,920 Speaker 1: why because and we've had this debate in the news room, 222 00:12:25,960 --> 00:12:28,000 Speaker 1: and I know there have been many sides to this 223 00:12:28,520 --> 00:12:31,320 Speaker 1: that well you saw this coming. Well, no, I didn't, 224 00:12:31,480 --> 00:12:35,720 Speaker 1: because of two things. One, we just had the ultimate 225 00:12:35,840 --> 00:12:40,960 Speaker 1: work stoppage from the Heavenly Skies. You want to work stoppage, Fine, 226 00:12:41,080 --> 00:12:44,440 Speaker 1: here's COVID. We're gonna stop the whole blasted thing. So you, 227 00:12:44,800 --> 00:12:48,480 Speaker 1: to me, you would think that now that we finally 228 00:12:48,559 --> 00:12:51,800 Speaker 1: got a whole season in and it looks like we're 229 00:12:51,800 --> 00:12:55,800 Speaker 1: on the back end, let's hope of COVID that we're 230 00:12:55,880 --> 00:12:58,439 Speaker 1: we're going to progress and build some momentum, and this 231 00:12:58,480 --> 00:13:02,960 Speaker 1: brings the whole thing to a stop. Well, you're correct 232 00:13:03,080 --> 00:13:06,199 Speaker 1: in that we've already lost, as you point out, half 233 00:13:06,200 --> 00:13:09,840 Speaker 1: of the season for circumstances that were beyond anyone's control, 234 00:13:10,320 --> 00:13:13,800 Speaker 1: and and that that was a big loss for the 235 00:13:13,800 --> 00:13:16,280 Speaker 1: game to not have certainly did not have games at 236 00:13:16,280 --> 00:13:18,760 Speaker 1: that point in time, and that's lost wages for players. 237 00:13:18,760 --> 00:13:20,960 Speaker 1: And now you look at uh they were able to 238 00:13:21,000 --> 00:13:26,400 Speaker 1: have one season, but notably, revenues did not get back 239 00:13:26,400 --> 00:13:29,760 Speaker 1: to where they were pre pandemic because for significant portions 240 00:13:29,760 --> 00:13:32,800 Speaker 1: of the season, a lot of ballparks were not at 241 00:13:32,880 --> 00:13:36,559 Speaker 1: full capacity. And so this really has to be a 242 00:13:36,679 --> 00:13:40,760 Speaker 1: time where you build on the success of at least 243 00:13:40,760 --> 00:13:44,040 Speaker 1: being able to complete the season and have a World 244 00:13:44,040 --> 00:13:46,360 Speaker 1: Series and have fans in the stands for that play 245 00:13:46,440 --> 00:13:50,240 Speaker 1: playoff run. This is an important building time to continue 246 00:13:50,240 --> 00:13:52,680 Speaker 1: the momentum. There are so many bright young stars in 247 00:13:52,679 --> 00:13:55,199 Speaker 1: the game. We just saw all the new excitement in 248 00:13:55,240 --> 00:13:57,720 Speaker 1: places like Texas, in Miami and Detroit in the last 249 00:13:57,720 --> 00:14:00,920 Speaker 1: couple of weeks with significant signing, and now all of 250 00:14:00,960 --> 00:14:05,120 Speaker 1: that marketing, all of that enthusiasm stops, the hot stove 251 00:14:05,559 --> 00:14:10,280 Speaker 1: turns cold, and we wait, and so I think momentum 252 00:14:10,360 --> 00:14:13,000 Speaker 1: and you both can speak to this and understanding just 253 00:14:13,080 --> 00:14:16,559 Speaker 1: the overall sports preferences that we have as a society, 254 00:14:16,600 --> 00:14:20,760 Speaker 1: which evolved and change with time. And you wonder if 255 00:14:20,800 --> 00:14:24,520 Speaker 1: on some level, the longer that this drags on, does 256 00:14:24,600 --> 00:14:28,800 Speaker 1: baseball worry about losing its seat at the table of 257 00:14:28,840 --> 00:14:33,200 Speaker 1: American sports consciousness. I do think that during the winter time. 258 00:14:33,240 --> 00:14:36,240 Speaker 1: Of course, now we've got the NFL's going, college football 259 00:14:36,320 --> 00:14:39,000 Speaker 1: is going, hoops hockey, We've got a lot happening right now. 260 00:14:39,040 --> 00:14:42,040 Speaker 1: And in the sports world. I always have thought that 261 00:14:42,080 --> 00:14:44,720 Speaker 1: the Super Bowl is the line of demarcation once that, 262 00:14:45,160 --> 00:14:48,400 Speaker 1: once the Lombardi Trophy has handed out, it's baseball season, 263 00:14:48,680 --> 00:14:50,680 Speaker 1: and I think that might be the first time at 264 00:14:50,680 --> 00:14:52,640 Speaker 1: which a fan looks up at this, Wait a minute, 265 00:14:52,640 --> 00:14:54,920 Speaker 1: have they still not figured this thing out yet? And 266 00:14:54,960 --> 00:14:58,160 Speaker 1: what does it mean? I really believe that Baseball and 267 00:14:58,200 --> 00:15:02,160 Speaker 1: the Union have probably that grace period of a couple 268 00:15:02,160 --> 00:15:04,880 Speaker 1: of months to figure this thing out, and that if 269 00:15:04,880 --> 00:15:07,040 Speaker 1: there's not an agreement by the time spring training is 270 00:15:07,120 --> 00:15:09,160 Speaker 1: due to start, at least when the Super Bowl is over, 271 00:15:09,640 --> 00:15:11,840 Speaker 1: I do think that that's when a lot of fans 272 00:15:11,840 --> 00:15:14,760 Speaker 1: would step back and really notice the absence of that 273 00:15:14,960 --> 00:15:18,200 Speaker 1: buzz that always comes along with the start of spring training. Hey, John, 274 00:15:18,240 --> 00:15:20,400 Speaker 1: the optics are really not good from the player's side. 275 00:15:20,400 --> 00:15:23,200 Speaker 1: When they trot up Max Scherzer, Uh, three years a 276 00:15:23,280 --> 00:15:25,680 Speaker 1: hundred and forty million dollars from the Mets at forty 277 00:15:25,760 --> 00:15:30,560 Speaker 1: three point three a year, um, will fans quickly take 278 00:15:30,640 --> 00:15:33,040 Speaker 1: sides with the owners or players? And do you think 279 00:15:33,040 --> 00:15:38,280 Speaker 1: it's heavily tilted towards the owners this time around? You know, Mike, 280 00:15:38,560 --> 00:15:41,560 Speaker 1: it's a great question because obviously, on some level, uh, 281 00:15:41,880 --> 00:15:44,680 Speaker 1: and maybe in speaking with more more casual fans, even 282 00:15:44,800 --> 00:15:47,040 Speaker 1: even my own dad, as I was talking to my 283 00:15:47,120 --> 00:15:52,480 Speaker 1: dad about everything, Uh, it is incongruous to see all 284 00:15:52,560 --> 00:15:55,600 Speaker 1: this money spent in the last month, nearly two billion 285 00:15:55,640 --> 00:15:59,320 Speaker 1: dollars to players and for the argument to then be 286 00:15:59,440 --> 00:16:04,480 Speaker 1: made that free agency is broken. It it almost by definitions. 287 00:16:04,600 --> 00:16:07,760 Speaker 1: As one executive said to me, that is the definition 288 00:16:07,800 --> 00:16:11,480 Speaker 1: of irony. Uh, that that players would be earning that 289 00:16:11,520 --> 00:16:14,440 Speaker 1: type of salary and then have have the contention be 290 00:16:14,560 --> 00:16:19,920 Speaker 1: that free agency is broken. It may perhaps be disproportionately 291 00:16:20,080 --> 00:16:24,440 Speaker 1: rewarding the top players. Uh. One could argue that that's 292 00:16:24,480 --> 00:16:27,640 Speaker 1: what free agency is supposed to do, that the premium 293 00:16:27,680 --> 00:16:32,440 Speaker 1: talent is is getting paid, and premium players should get paid. 294 00:16:32,840 --> 00:16:35,480 Speaker 1: It's the question I think on both sides here, and 295 00:16:35,520 --> 00:16:38,800 Speaker 1: I think ultimately what will bring this work stoppage to 296 00:16:38,880 --> 00:16:41,080 Speaker 1: a close and get the game back on the field. 297 00:16:41,600 --> 00:16:45,200 Speaker 1: Is a more comprehensive way to handle the middle tier 298 00:16:45,440 --> 00:16:50,000 Speaker 1: of players, and MLB has notably proposed age based free 299 00:16:50,040 --> 00:16:52,800 Speaker 1: agency at twenty nine and a half years of age, 300 00:16:53,120 --> 00:16:56,160 Speaker 1: which I think would address meaningfully some of the concerns 301 00:16:56,200 --> 00:16:59,160 Speaker 1: that players have about when players hit free agency at 302 00:16:59,160 --> 00:17:01,960 Speaker 1: the age of thirty and thirty two, they have found 303 00:17:02,080 --> 00:17:07,000 Speaker 1: very tepid markets because teams have reams of analytical data 304 00:17:07,040 --> 00:17:10,480 Speaker 1: that suggests that once a player is thirty three, thirty 305 00:17:10,520 --> 00:17:13,159 Speaker 1: five years old, they're just simply not as productive as 306 00:17:13,160 --> 00:17:15,520 Speaker 1: they used to be in many cases. Obviously, mac shus 307 00:17:15,560 --> 00:17:18,080 Speaker 1: Are at thirty seven is one notable exception, with that 308 00:17:18,160 --> 00:17:20,680 Speaker 1: forty three million dollar per year salary that he's got coming. 309 00:17:20,720 --> 00:17:24,560 Speaker 1: So it's a it's a different paradigm to look at things. 310 00:17:25,000 --> 00:17:29,200 Speaker 1: I believe that when when you consider which side will 311 00:17:29,240 --> 00:17:31,480 Speaker 1: be taken by which fans. Is probably not for me 312 00:17:31,520 --> 00:17:33,760 Speaker 1: to say, but I I do think there's plenty of 313 00:17:33,800 --> 00:17:37,800 Speaker 1: information out there that suggests there's ample money being spent 314 00:17:38,440 --> 00:17:41,400 Speaker 1: by the clubs, and if there's a more efficient way 315 00:17:41,440 --> 00:17:44,639 Speaker 1: to allocate it, that then should be the conversation. And 316 00:17:44,960 --> 00:17:49,199 Speaker 1: in fact, MLB has proposed increases to the minimum salary, 317 00:17:49,240 --> 00:17:51,199 Speaker 1: which is important for the players with fewer than three 318 00:17:51,240 --> 00:17:55,800 Speaker 1: years of service, and also a more objective arbitration process 319 00:17:55,840 --> 00:17:58,600 Speaker 1: that I think would would reward players for what they're 320 00:17:58,640 --> 00:18:01,800 Speaker 1: doing in the zero to six range, meaning zero years 321 00:18:01,800 --> 00:18:04,399 Speaker 1: of service to six years of service before they become 322 00:18:04,440 --> 00:18:08,639 Speaker 1: free agents. If if free agency will become complicated, then 323 00:18:08,680 --> 00:18:13,960 Speaker 1: at least let's let's guarantee and provide better pay structures 324 00:18:14,000 --> 00:18:17,400 Speaker 1: for those players before they hit free agency, and in fact, 325 00:18:18,000 --> 00:18:21,520 Speaker 1: at least one and perhaps more proposals by MLB would 326 00:18:21,520 --> 00:18:25,000 Speaker 1: address precisely that. Well, the thing about a work stoppage, 327 00:18:25,040 --> 00:18:27,200 Speaker 1: and it doesn't make a difference whether you're talking here 328 00:18:27,240 --> 00:18:31,800 Speaker 1: about MLB or you're talking about Native detroiter here. Uh 329 00:18:31,960 --> 00:18:36,640 Speaker 1: and auto strike, you have to have the sympathy of 330 00:18:37,080 --> 00:18:40,760 Speaker 1: the public in order for that strike to work. And 331 00:18:40,800 --> 00:18:44,359 Speaker 1: you brought up an excellent point. You know, you've got 332 00:18:44,440 --> 00:18:48,119 Speaker 1: all these big money contracts being put out there, and 333 00:18:48,200 --> 00:18:51,359 Speaker 1: I think the Players Union is doing it all wrong. 334 00:18:52,160 --> 00:18:55,440 Speaker 1: You should address more as the players Union the minor 335 00:18:55,520 --> 00:19:00,000 Speaker 1: league players that are owned by the big teams. Uh, 336 00:19:00,280 --> 00:19:04,280 Speaker 1: they're making like Piddley squad. And if you talk about 337 00:19:04,320 --> 00:19:08,119 Speaker 1: the life of what they go through, maybe the public 338 00:19:08,160 --> 00:19:12,840 Speaker 1: would understand more about this work stoppage. Well, Michael, it's 339 00:19:12,840 --> 00:19:14,439 Speaker 1: a very fair point, and actually there have been some 340 00:19:14,760 --> 00:19:20,320 Speaker 1: recent agreements made regarding the working conditions for minor league players, 341 00:19:20,320 --> 00:19:24,720 Speaker 1: the support they get um their living expenses. Because you're right, 342 00:19:25,240 --> 00:19:30,040 Speaker 1: salaries at the minor league level are are not sustainable 343 00:19:30,560 --> 00:19:33,000 Speaker 1: from a standpoint of having a high quality of life 344 00:19:33,119 --> 00:19:37,240 Speaker 1: unless you are a player who who has that large 345 00:19:37,240 --> 00:19:39,680 Speaker 1: signing bonus to to tide you over. If you look 346 00:19:39,680 --> 00:19:41,720 Speaker 1: at it that way, I think it's one of the 347 00:19:41,760 --> 00:19:45,000 Speaker 1: great misconceptions about the sport that let's say a player 348 00:19:45,040 --> 00:19:47,800 Speaker 1: gets a million dollars signing bonus. It sounds great and 349 00:19:47,840 --> 00:19:50,800 Speaker 1: it is, don't get me wrong, But what that bonus 350 00:19:50,840 --> 00:19:54,119 Speaker 1: does that buys that player some time to develop in 351 00:19:54,160 --> 00:19:57,000 Speaker 1: the minor leagues where they might be earning fifteen thousand 352 00:19:57,040 --> 00:19:58,800 Speaker 1: dollars a year or twenty tho dollars a year. If 353 00:19:58,840 --> 00:20:02,480 Speaker 1: you start to average at million dollars out over over 354 00:20:02,520 --> 00:20:05,760 Speaker 1: a six year journey in the minor leagues, that's that's 355 00:20:05,760 --> 00:20:07,880 Speaker 1: what it's. It's buying you that time if you will 356 00:20:07,960 --> 00:20:10,760 Speaker 1: to then hopefully get to fulfil your major leagreement. That 357 00:20:10,880 --> 00:20:13,879 Speaker 1: that doesn't happen, then that's that's all you've got. And 358 00:20:13,920 --> 00:20:17,120 Speaker 1: so I think that you're right, Michael, that you're I think, 359 00:20:17,160 --> 00:20:20,080 Speaker 1: really striking at one of the key issues. Unfortunately, from 360 00:20:20,119 --> 00:20:23,119 Speaker 1: a from a player's standpoint, at least, this conversation about 361 00:20:23,119 --> 00:20:27,879 Speaker 1: the negotiations, those players by and large are not members 362 00:20:27,880 --> 00:20:30,600 Speaker 1: of the union. They are they are minor league players. 363 00:20:30,640 --> 00:20:35,080 Speaker 1: This is so their their situation is handled quite separately 364 00:20:35,160 --> 00:20:39,240 Speaker 1: from from this negotiation, and and from a meaningful standpoint, 365 00:20:39,480 --> 00:20:44,440 Speaker 1: those conversations, while very important, are not necessarily germane to 366 00:20:44,560 --> 00:20:47,000 Speaker 1: the negotiations going on right now on the new c 367 00:20:47,160 --> 00:20:50,280 Speaker 1: p A. But Michael, you raised an excellent points, as 368 00:20:50,280 --> 00:20:52,080 Speaker 1: you have all those years I listened to you in 369 00:20:52,119 --> 00:20:54,879 Speaker 1: our home state of Michigan, and you've always make a 370 00:20:54,880 --> 00:20:57,320 Speaker 1: lot of excellent points. That was another very very good one. 371 00:20:58,520 --> 00:21:00,560 Speaker 1: But we had you up here in Boston four years 372 00:21:00,560 --> 00:21:02,800 Speaker 1: and a little work I remember that. Well, yes, thank 373 00:21:02,840 --> 00:21:06,760 Speaker 1: you so much, thank you. Um So we don't fans 374 00:21:06,800 --> 00:21:08,360 Speaker 1: don't need to put their finger in the panic butt 375 00:21:08,400 --> 00:21:11,160 Speaker 1: until probably around February one that we're all in agreement 376 00:21:11,160 --> 00:21:14,199 Speaker 1: on that. What is the deal breaker here is that 377 00:21:14,240 --> 00:21:16,880 Speaker 1: the arbitration lowering down to two years or free agency 378 00:21:16,920 --> 00:21:19,280 Speaker 1: down to five years. You know, Mike, it's a great question. 379 00:21:19,359 --> 00:21:22,399 Speaker 1: I think for me, it probably has to do with 380 00:21:22,400 --> 00:21:27,119 Speaker 1: with the free agency because, as as MLB of officials 381 00:21:27,119 --> 00:21:31,000 Speaker 1: have pointed out, when you consider where the different proposals 382 00:21:31,000 --> 00:21:34,320 Speaker 1: have come and and what the union is hoping to 383 00:21:34,359 --> 00:21:38,960 Speaker 1: achieve in this particular negotiation, there are three tenants of 384 00:21:39,520 --> 00:21:44,120 Speaker 1: longstanding baseball collective bargaining that the union wants to change 385 00:21:44,160 --> 00:21:47,440 Speaker 1: in one negotiation. It's it's moving the free agency number, 386 00:21:47,720 --> 00:21:50,359 Speaker 1: it's moving the arbitration number. And then also, as the 387 00:21:50,359 --> 00:21:53,840 Speaker 1: Commissioner said Thursday, taking a hundred million dollars out of 388 00:21:53,880 --> 00:21:58,439 Speaker 1: revenue sharing, which obviously would compromise the ability of the 389 00:21:58,560 --> 00:22:02,119 Speaker 1: smaller market clubs to compete and spend, whereas at the 390 00:22:02,160 --> 00:22:05,160 Speaker 1: top end, UH it would allow the likes of the Yankees, 391 00:22:05,200 --> 00:22:08,840 Speaker 1: etcetera to have more resources to chase the biggest free agents, 392 00:22:08,840 --> 00:22:12,560 Speaker 1: which certainly is is is an understandable wish on the 393 00:22:12,600 --> 00:22:15,760 Speaker 1: part of the players that the problem is that's three 394 00:22:16,080 --> 00:22:19,919 Speaker 1: major transformative changes to to try to tackle in the 395 00:22:19,960 --> 00:22:23,880 Speaker 1: course of one negotiation, whereas it's probably a little wiser 396 00:22:23,920 --> 00:22:27,159 Speaker 1: and more of a normal course of business to attack 397 00:22:27,240 --> 00:22:29,600 Speaker 1: those issues one at a time, and it's something of 398 00:22:29,640 --> 00:22:33,960 Speaker 1: a sequential um basis, it's very hard to to upend 399 00:22:34,560 --> 00:22:37,200 Speaker 1: decades and really generations going back to the mid nineties 400 00:22:37,280 --> 00:22:40,960 Speaker 1: seventies of of what labor relations in the sport have 401 00:22:41,040 --> 00:22:43,840 Speaker 1: been based around all in one negotiation. So, Mike, I 402 00:22:43,880 --> 00:22:46,119 Speaker 1: really think it's probably that free agent piece that's the 403 00:22:46,160 --> 00:22:49,920 Speaker 1: most stand out as being an issue, although the revenue 404 00:22:49,920 --> 00:22:52,040 Speaker 1: sharing is a big one too. And and there there 405 00:22:52,080 --> 00:22:56,520 Speaker 1: have to be ways for the players to find a 406 00:22:56,600 --> 00:23:00,520 Speaker 1: way to encourage the larger market teams to spend more 407 00:23:00,560 --> 00:23:03,880 Speaker 1: by perhaps moving up the the competitive balanced tax threshold 408 00:23:03,920 --> 00:23:06,679 Speaker 1: on the positive side, the luxury tax threshold, if you 409 00:23:06,680 --> 00:23:10,280 Speaker 1: will move that number up, as opposed to just flat 410 00:23:10,320 --> 00:23:13,879 Speaker 1: out removing money from revenue sharing, because that revenue sharing 411 00:23:13,920 --> 00:23:17,120 Speaker 1: money is what allows a team like the Tampa Bay 412 00:23:17,160 --> 00:23:19,359 Speaker 1: Rays to put such an exciting product on the field, 413 00:23:19,440 --> 00:23:22,840 Speaker 1: and notably to retain one of their brilliant star players, 414 00:23:23,080 --> 00:23:25,280 Speaker 1: Mike you who we saw playing during the course of 415 00:23:25,320 --> 00:23:30,400 Speaker 1: the Division Series at Fenway, that incredible player Wander Franco, 416 00:23:30,680 --> 00:23:32,880 Speaker 1: to be able to sign him long term. I'm not 417 00:23:32,960 --> 00:23:36,439 Speaker 1: sure that deal happens without revenue sharing. Well, John, we 418 00:23:36,440 --> 00:23:38,960 Speaker 1: could go on for another two hours on this, and 419 00:23:39,000 --> 00:23:40,840 Speaker 1: the only thing missing right now is a six pack 420 00:23:40,920 --> 00:23:46,920 Speaker 1: of Corona and some pretzels. Thank you so much, John MORROSSI. 421 00:23:47,040 --> 00:23:51,800 Speaker 1: He is the MLB Network insider and he just glad 422 00:23:51,840 --> 00:23:53,640 Speaker 1: that you could come here and talk with us and 423 00:23:53,640 --> 00:23:57,160 Speaker 1: and on a very important topic. Thank you again, sire, 424 00:23:57,640 --> 00:23:59,680 Speaker 1: Thank you so much. What We'll be watching Michigan Ohio 425 00:23:59,800 --> 00:24:02,720 Speaker 1: State carefully or Michigan and IOWA now coming up as 426 00:24:02,720 --> 00:24:05,520 Speaker 1: big than championship. Being carefully as we can, may I 427 00:24:05,560 --> 00:24:08,920 Speaker 1: wish Michigan as much luck as Harvard had against a 428 00:24:08,960 --> 00:24:13,399 Speaker 1: boy Johnny had a boy way to go. I'm glad 429 00:24:13,440 --> 00:24:16,320 Speaker 1: there's no footage of me watching the Michigan O s 430 00:24:16,440 --> 00:24:19,000 Speaker 1: U game, because it's like, oh, look at that crazy 431 00:24:19,040 --> 00:24:22,280 Speaker 1: man on the couch. And let's continue our conversation on 432 00:24:22,359 --> 00:24:25,240 Speaker 1: the MLB lockout and look at the legal side of 433 00:24:25,320 --> 00:24:28,679 Speaker 1: the situation. We're joined by Martin Needel. He is the 434 00:24:28,800 --> 00:24:33,200 Speaker 1: chair of Gholston and Stores Sports Law practice and an 435 00:24:33,200 --> 00:24:37,919 Speaker 1: adjunct instructor at Columbia Law School. Martin, thank you so 436 00:24:38,000 --> 00:24:41,520 Speaker 1: much for joining us. I know it's a serious topic here, 437 00:24:41,960 --> 00:24:46,080 Speaker 1: but I hope we can sit down and have some 438 00:24:46,080 --> 00:24:49,680 Speaker 1: some relaxed conversation with it. Well. I hope so too, 439 00:24:49,720 --> 00:24:52,080 Speaker 1: and thank you for the opportunity of speaking with both 440 00:24:52,119 --> 00:24:55,679 Speaker 1: of you. I guess the first question, the legal side, 441 00:24:56,000 --> 00:24:58,680 Speaker 1: is something people don't realize, and I want to set 442 00:24:58,680 --> 00:25:03,000 Speaker 1: this up. Now that we have this lockout, it means 443 00:25:03,040 --> 00:25:07,320 Speaker 1: the players cannot go to any of the facilities right now, 444 00:25:07,400 --> 00:25:09,640 Speaker 1: and that brings up an interesting situation. I'm not talking 445 00:25:09,680 --> 00:25:12,320 Speaker 1: about just the players you know, who talked to their 446 00:25:12,359 --> 00:25:14,800 Speaker 1: coaches or whatever. But let's say, for instance, you have 447 00:25:14,840 --> 00:25:18,359 Speaker 1: an injury that you suffered last season, UH, and you 448 00:25:18,400 --> 00:25:22,760 Speaker 1: were getting treatment at the facility. Now all of a 449 00:25:22,840 --> 00:25:26,159 Speaker 1: sudden you can't go. That's got to bring up a 450 00:25:26,200 --> 00:25:31,680 Speaker 1: lot of problems here. I'm sure that is correct, um as. 451 00:25:32,080 --> 00:25:36,480 Speaker 1: But players also have other alternatives. They could go to 452 00:25:37,920 --> 00:25:41,639 Speaker 1: other facilities that are not under the aegis of Major 453 00:25:41,680 --> 00:25:45,600 Speaker 1: League Baseball for treatment. Um. You know, they can always 454 00:25:45,640 --> 00:25:48,359 Speaker 1: sort out later who's responsible and who's going to pay. 455 00:25:48,400 --> 00:25:51,119 Speaker 1: But I don't I'm not sure that that would be 456 00:25:51,240 --> 00:25:55,320 Speaker 1: the driving issue here for players, Martin. It's Mike lynch 457 00:25:55,359 --> 00:25:59,119 Speaker 1: up in Boston. A question was asked of Commissioner Manfred 458 00:25:59,200 --> 00:26:02,199 Speaker 1: on Thursday more that there are some players that are 459 00:26:02,280 --> 00:26:06,720 Speaker 1: seeking mental health treatment and therapy, and he was asked 460 00:26:06,720 --> 00:26:09,200 Speaker 1: if that would cease as well as free have for 461 00:26:09,640 --> 00:26:12,240 Speaker 1: s Vincent's the shoulder or a knee. What kind of 462 00:26:12,320 --> 00:26:16,560 Speaker 1: legal complications could could that start up? So that's a 463 00:26:16,600 --> 00:26:22,159 Speaker 1: great question, Mike. Um that has lots of issues attached 464 00:26:22,200 --> 00:26:28,840 Speaker 1: to it. One is is there a continuing treatment requirement, uh, 465 00:26:29,359 --> 00:26:33,359 Speaker 1: which if Major League Baseball suddenly stops they're going to 466 00:26:33,400 --> 00:26:37,719 Speaker 1: be liable for any problems that result. There is also, 467 00:26:38,160 --> 00:26:42,240 Speaker 1: apart from the legal issue, the public relations issue. Do 468 00:26:42,240 --> 00:26:44,679 Speaker 1: you really want to tell a player that the player 469 00:26:44,760 --> 00:26:49,920 Speaker 1: cannot seek mental health treatment simply because the collective bargaining 470 00:26:49,960 --> 00:26:55,359 Speaker 1: agreement has expired without affording that player other opportunities. I 471 00:26:55,440 --> 00:26:59,919 Speaker 1: think that would be a nightmare for baseball. What is 472 00:27:00,119 --> 00:27:02,760 Speaker 1: the biggest legal point that you see with this work 473 00:27:02,760 --> 00:27:06,040 Speaker 1: stoppage at least from now? Well, you know it's funny. 474 00:27:06,080 --> 00:27:08,360 Speaker 1: Let me just set it up if I may um. 475 00:27:09,080 --> 00:27:12,480 Speaker 1: Unlike a strike, which is a work stoppage, here you 476 00:27:12,600 --> 00:27:17,320 Speaker 1: have the owners stopping the work. So it's a little 477 00:27:17,320 --> 00:27:21,439 Speaker 1: bit of a nuanced answer to it. But as I understand, 478 00:27:21,480 --> 00:27:24,959 Speaker 1: the economic issues, and there are some non economic issues 479 00:27:25,000 --> 00:27:30,000 Speaker 1: as well, but the principal economic issues are for as 480 00:27:30,040 --> 00:27:33,480 Speaker 1: I understand it, First is what is the path to 481 00:27:33,600 --> 00:27:38,080 Speaker 1: free agency? Should it be the six year that currently 482 00:27:38,160 --> 00:27:42,680 Speaker 1: exists or should it be something less than that? Uh? 483 00:27:42,880 --> 00:27:47,240 Speaker 1: Second is what should be the parameters of the luxury tax? 484 00:27:47,840 --> 00:27:52,560 Speaker 1: Unlike UH the other professional sports leagues National Football League, 485 00:27:52,720 --> 00:27:56,280 Speaker 1: National Basketball Association, in the National Hockey League, Major League 486 00:27:56,280 --> 00:28:00,600 Speaker 1: Baseball does not have a salary cap on its own 487 00:28:01,200 --> 00:28:05,800 Speaker 1: it uses what it's called a luxury tax, and there 488 00:28:05,880 --> 00:28:10,240 Speaker 1: has been something back and forth. I don't know if 489 00:28:10,280 --> 00:28:12,680 Speaker 1: there's been a lot of negotiation, but there's been back 490 00:28:12,720 --> 00:28:15,440 Speaker 1: and forth as to whether the amount of the luxury 491 00:28:15,480 --> 00:28:19,360 Speaker 1: tax is too high, were too low, and whether there 492 00:28:19,359 --> 00:28:23,359 Speaker 1: should be minimum amounts that teams have to pay in 493 00:28:23,480 --> 00:28:27,480 Speaker 1: terms of salary. The third issue is whether or not 494 00:28:28,240 --> 00:28:33,000 Speaker 1: there should be salary arbitration um right now that exists 495 00:28:33,080 --> 00:28:36,320 Speaker 1: after three years for any player. The question is shouldn't 496 00:28:36,359 --> 00:28:39,840 Speaker 1: go to an earlier period of time. And the fourth 497 00:28:39,920 --> 00:28:44,400 Speaker 1: economic issue is one that the Union has brought up, 498 00:28:44,440 --> 00:28:51,280 Speaker 1: which is um that teams maybe tanking what goes on 499 00:28:51,360 --> 00:28:55,640 Speaker 1: there to try to get more junior players in terms 500 00:28:55,840 --> 00:29:00,280 Speaker 1: of signing rather than using veterans with their higher sal race. 501 00:29:01,400 --> 00:29:04,920 Speaker 1: And that's a great concern because it affects the path 502 00:29:05,040 --> 00:29:08,000 Speaker 1: to free agency, it affects the amount of luxury tax, 503 00:29:08,120 --> 00:29:11,920 Speaker 1: and quite frankly, it affects the competitive nature of the 504 00:29:11,960 --> 00:29:16,240 Speaker 1: teams who may tank rather than win games. So those 505 00:29:16,280 --> 00:29:19,920 Speaker 1: are the four economic issues that as I understand, are 506 00:29:19,960 --> 00:29:24,760 Speaker 1: in play right now. Martin, Why would Baseball order the 507 00:29:24,800 --> 00:29:27,720 Speaker 1: teams to take down images of players during this luck? 508 00:29:27,960 --> 00:29:30,040 Speaker 1: For instance, Bryce Harper was the m v P of 509 00:29:30,040 --> 00:29:32,480 Speaker 1: the National League. There's a big banner at Citizens Bank 510 00:29:32,520 --> 00:29:35,120 Speaker 1: Ballpark and they were ordered to take it down, basically 511 00:29:35,120 --> 00:29:39,200 Speaker 1: eliminating all name, image, and likeness with ownership gain an 512 00:29:39,240 --> 00:29:42,920 Speaker 1: advantage by keeping his image up on the ballpark. To me, 513 00:29:43,080 --> 00:29:46,800 Speaker 1: that can cut both ways, Mike Um. By taking down 514 00:29:46,800 --> 00:29:52,880 Speaker 1: the image, they're preventing Bryce Harper from realizing any licensing 515 00:29:52,960 --> 00:29:56,760 Speaker 1: fees or other types of revenues he may gain from 516 00:29:57,240 --> 00:30:01,200 Speaker 1: promoting his name, image or likeness. But it also affects 517 00:30:01,240 --> 00:30:04,280 Speaker 1: the team which is trying to do that ostensibly has 518 00:30:04,320 --> 00:30:08,840 Speaker 1: a deal with Bryce Harper to license his name, image, 519 00:30:08,840 --> 00:30:12,440 Speaker 1: and likeness. What I don't understand is the whole hang 520 00:30:12,520 --> 00:30:17,400 Speaker 1: up about sponsorships. What I don't understand how that can 521 00:30:17,400 --> 00:30:20,280 Speaker 1: be infected and how that is shut down. So that's 522 00:30:20,320 --> 00:30:26,000 Speaker 1: another great question. Professional athletes have a limited life in 523 00:30:26,040 --> 00:30:30,200 Speaker 1: the sands that they play. They can excel for a 524 00:30:30,280 --> 00:30:34,080 Speaker 1: period of time, but eventually age creeps up and they're 525 00:30:34,120 --> 00:30:40,440 Speaker 1: no longer as viable as stars or viable as professional athletes. 526 00:30:40,480 --> 00:30:45,840 Speaker 1: So they seek to monetize uh their rights as early 527 00:30:46,000 --> 00:30:50,640 Speaker 1: as they can, for as much as they can. UM 528 00:30:50,720 --> 00:30:55,120 Speaker 1: and by telling sponsors. Hey, you know, we're not going 529 00:30:55,200 --> 00:30:58,960 Speaker 1: to permit the licensing to go forward. You're doing you're 530 00:30:59,040 --> 00:31:03,720 Speaker 1: taking a deep cut into a player's ability to monetize 531 00:31:04,200 --> 00:31:08,800 Speaker 1: his name, image and likeness with the result that they're trying, 532 00:31:08,920 --> 00:31:10,960 Speaker 1: you know, it's an economic tool to try to force 533 00:31:11,040 --> 00:31:14,520 Speaker 1: the players to come back to the bargaining table on 534 00:31:14,720 --> 00:31:19,560 Speaker 1: terms favorable to the owners. Martin the free agency, I 535 00:31:19,560 --> 00:31:22,800 Speaker 1: think is probably the number one sticking point here the 536 00:31:23,000 --> 00:31:27,280 Speaker 1: the six years or five should there be a work stoppage, uh, 537 00:31:27,360 --> 00:31:30,200 Speaker 1: is there always a concession that time loss can be 538 00:31:30,280 --> 00:31:33,160 Speaker 1: credited to a player. For instance, if he's at five 539 00:31:33,200 --> 00:31:35,760 Speaker 1: and a half years in and they don't start playing 540 00:31:35,840 --> 00:31:38,440 Speaker 1: until August of next year, that's going to be a 541 00:31:38,480 --> 00:31:42,640 Speaker 1: subject of intense bargaining whether or not they should credit 542 00:31:43,360 --> 00:31:46,360 Speaker 1: the player back. You will remember back to two thousand 543 00:31:46,400 --> 00:31:52,320 Speaker 1: and fifteen with Chris Bryant, and of course the Cubs 544 00:31:52,360 --> 00:31:56,480 Speaker 1: did not let Bryant go to the major leagues I 545 00:31:56,520 --> 00:31:58,720 Speaker 1: think it was until the second month of the season, 546 00:31:59,120 --> 00:32:02,600 Speaker 1: and therefore they under the existing rules, the Cubs did 547 00:32:02,600 --> 00:32:06,960 Speaker 1: not have to credit Bryant with that particular year, uh 548 00:32:07,320 --> 00:32:11,720 Speaker 1: being a credit towards the free agency time period. Brian 549 00:32:11,880 --> 00:32:15,480 Speaker 1: arbitrated that issue and lost, So instead of being a 550 00:32:15,520 --> 00:32:18,720 Speaker 1: six year term, it became a seven year term for 551 00:32:18,800 --> 00:32:24,600 Speaker 1: bryant Um. And here too, if if the work stoppage, well, 552 00:32:24,720 --> 00:32:28,880 Speaker 1: the lockout continues into the year, and then uh, there's 553 00:32:28,920 --> 00:32:33,680 Speaker 1: no time made up and that's not the subject of bargaining. Uh, 554 00:32:34,760 --> 00:32:38,640 Speaker 1: that comes out favorable to the players. The players may lose. 555 00:32:39,000 --> 00:32:42,560 Speaker 1: Some players who would otherwise be eligible for the full 556 00:32:42,680 --> 00:32:46,200 Speaker 1: year credit towards free agency may find that they're not 557 00:32:46,280 --> 00:32:51,640 Speaker 1: getting that credit. Baseball Commissioner Rob Manfred said that he 558 00:32:51,720 --> 00:32:55,760 Speaker 1: believes that an off season lockouts the best mechanism to 559 00:32:55,840 --> 00:32:59,840 Speaker 1: protect the season, and they hope that the lockout will 560 00:33:00,040 --> 00:33:03,440 Speaker 1: jump start in the negotiations. Do you agree with that, 561 00:33:03,480 --> 00:33:09,080 Speaker 1: Martin No, Um, A lockout is a very serious economic tactic. 562 00:33:09,240 --> 00:33:14,840 Speaker 1: It's perfectly permissible under the National Labor Relations Act, just 563 00:33:14,960 --> 00:33:19,000 Speaker 1: like a strike is perfectly permissible under the National Labor 564 00:33:19,040 --> 00:33:23,040 Speaker 1: Relations Act. But you look at what happened. They had 565 00:33:23,080 --> 00:33:27,920 Speaker 1: a seven minute session. Um, that didn't bode well for 566 00:33:28,040 --> 00:33:32,959 Speaker 1: future discussions. And the question really becomes how interested is 567 00:33:33,080 --> 00:33:36,480 Speaker 1: each party in coming back to the table and on 568 00:33:36,520 --> 00:33:39,760 Speaker 1: what terms? Yeah, I was supposed to be nine hours, 569 00:33:39,840 --> 00:33:43,920 Speaker 1: and they wound up being just seven minutes right right. So, 570 00:33:44,000 --> 00:33:47,280 Speaker 1: as you probably know, pictures and catchers and scheduled to 571 00:33:47,360 --> 00:33:50,920 Speaker 1: report around February fifteen, and exhibition games are scheduled to 572 00:33:50,920 --> 00:33:56,400 Speaker 1: commence February. Given the holiday schedule, that's really just around 573 00:33:56,440 --> 00:34:01,680 Speaker 1: the corner. Will the party's come back to bargain in 574 00:34:01,720 --> 00:34:06,200 Speaker 1: earnest will they be able to complete what are going 575 00:34:06,240 --> 00:34:11,440 Speaker 1: to be complex negotiations before that time is really up 576 00:34:11,440 --> 00:34:15,840 Speaker 1: in the air. Yes, there's an advantage to starting during 577 00:34:15,840 --> 00:34:19,279 Speaker 1: the off season. That's probably one of the reasons that 578 00:34:19,360 --> 00:34:24,040 Speaker 1: the collective bargaining agreement expired during the off season. But 579 00:34:24,880 --> 00:34:27,879 Speaker 1: there's no guarantee that they'll be able to complete these 580 00:34:27,920 --> 00:34:32,200 Speaker 1: complex negotiations in two and a half months with all 581 00:34:32,239 --> 00:34:37,280 Speaker 1: the holidays in play. Martin, the Commissioner, said on Thursday 582 00:34:37,320 --> 00:34:41,600 Speaker 1: that Baseball made a mistake by starting this season without 583 00:34:41,719 --> 00:34:44,439 Speaker 1: a collective bargaining agreement, and he said, quote, we will 584 00:34:44,480 --> 00:34:48,840 Speaker 1: not make that mistake again. Does that sound like something 585 00:34:48,880 --> 00:34:55,520 Speaker 1: that is very inflexible to you. Yes, Um, there are 586 00:34:55,680 --> 00:35:00,480 Speaker 1: other leagues which start the season when they think they've 587 00:35:00,520 --> 00:35:05,120 Speaker 1: made sufficient progress on a new collective bargaining agreement that 588 00:35:05,200 --> 00:35:07,680 Speaker 1: they think they're going to bring it across the finish line. 589 00:35:08,840 --> 00:35:13,560 Speaker 1: Taking a hardline position saying we're not going to reopen 590 00:35:13,600 --> 00:35:17,040 Speaker 1: our doors uh and get rid of the lockout until 591 00:35:17,080 --> 00:35:22,320 Speaker 1: we have a signed collective bargaining agreement. Sounds inflexible, UM, 592 00:35:22,360 --> 00:35:25,320 Speaker 1: and I think is designed to send a very strong 593 00:35:25,400 --> 00:35:29,160 Speaker 1: message to the players union that you better become more 594 00:35:29,160 --> 00:35:33,400 Speaker 1: flexible on your demands. What's different to me when you 595 00:35:33,440 --> 00:35:38,520 Speaker 1: talk about the four major food groups in sports Baseball, football, basketball, hockey, 596 00:35:38,600 --> 00:35:43,319 Speaker 1: especially in the NBA. Adam Silver has what appears to 597 00:35:43,360 --> 00:35:47,080 Speaker 1: be a great relationship with the union and the players. 598 00:35:47,560 --> 00:35:51,239 Speaker 1: On the other side of the coin, Rob Manfred has, 599 00:35:51,360 --> 00:35:57,800 Speaker 1: let's call it maybe a strained relationship with the union, 600 00:35:58,080 --> 00:36:01,400 Speaker 1: and I'll put it that way. Is that a fair assessment? 601 00:36:01,560 --> 00:36:05,560 Speaker 1: And and what can both sides do here to try 602 00:36:05,600 --> 00:36:09,960 Speaker 1: to change that? So I from everything I've read in 603 00:36:10,000 --> 00:36:14,160 Speaker 1: the press, UM, yes, I think that's a very fair assessment. 604 00:36:14,719 --> 00:36:18,759 Speaker 1: And remember that Rob Manfred's background is that he came 605 00:36:18,800 --> 00:36:22,480 Speaker 1: to Major League Baseball and he was a principal negotiator 606 00:36:22,520 --> 00:36:27,960 Speaker 1: of prior collective bargaining agreements for Major League Baseball. UM 607 00:36:28,000 --> 00:36:34,399 Speaker 1: As commissioner, now he represents thirty owners and he has 608 00:36:34,480 --> 00:36:37,520 Speaker 1: to take into account not only what is in the 609 00:36:37,560 --> 00:36:40,800 Speaker 1: best interests of the sport, but also what the thirty 610 00:36:40,840 --> 00:36:46,719 Speaker 1: owners want. Um. Historically that's to be protected somewhat from 611 00:36:46,760 --> 00:36:51,560 Speaker 1: their own greed. Hence, let's keep let's find mechanisms to 612 00:36:51,840 --> 00:36:56,759 Speaker 1: reduce player salaries and player compensation, because otherwise we're going 613 00:36:56,840 --> 00:37:01,719 Speaker 1: to be bidding against each other in an endless war. Um. 614 00:37:01,760 --> 00:37:05,160 Speaker 1: You know, we saw just before the lockow went into effect, 615 00:37:06,000 --> 00:37:10,720 Speaker 1: Corey Seeger signed a contract with the Rangers for million 616 00:37:10,760 --> 00:37:17,400 Speaker 1: dollars over ten years. Uh. That's a lot of money. 617 00:37:19,120 --> 00:37:22,680 Speaker 1: And you know, left to their own devices, owners might 618 00:37:22,800 --> 00:37:27,920 Speaker 1: continue to bid up salaries. Ance they have a luxury tax, 619 00:37:28,080 --> 00:37:32,640 Speaker 1: which and which the penalty has become somewhat punitive if 620 00:37:32,719 --> 00:37:35,840 Speaker 1: they exceed the amount of payroll. UM. I think this 621 00:37:35,960 --> 00:37:39,359 Speaker 1: past season was two million in payroll, which is an 622 00:37:39,440 --> 00:37:44,200 Speaker 1: enormous amount. Uh. But you know, if you were paying 623 00:37:44,239 --> 00:37:46,799 Speaker 1: one player thirty two and a half million dollars a year, 624 00:37:46,840 --> 00:37:50,680 Speaker 1: you'll you're going to get to that two million dollars 625 00:37:50,760 --> 00:37:54,080 Speaker 1: before too long for your five or forty players, depending 626 00:37:54,120 --> 00:37:58,400 Speaker 1: on how it's calculated. Martin. The players do not get 627 00:37:58,480 --> 00:38:02,359 Speaker 1: paid in the off season. Um. Presumably they won't start 628 00:38:02,360 --> 00:38:06,760 Speaker 1: getting a check until spring training starts. What talk about 629 00:38:06,760 --> 00:38:09,680 Speaker 1: the collateral damage of a lockout between now and say 630 00:38:09,719 --> 00:38:14,839 Speaker 1: that the pithical data February so, um, you know, all 631 00:38:14,880 --> 00:38:19,080 Speaker 1: of a sudden, the savings that players have put aside 632 00:38:19,800 --> 00:38:23,960 Speaker 1: for the off season needs to be stretched into the 633 00:38:24,040 --> 00:38:27,319 Speaker 1: exhibition season and possibly the regular season. Because there's no 634 00:38:27,400 --> 00:38:30,360 Speaker 1: guarantee of a paycheck, the union may give them something 635 00:38:30,440 --> 00:38:37,160 Speaker 1: towards it. UM. For big earners that may not be 636 00:38:37,200 --> 00:38:39,320 Speaker 1: as great a concern because they may have more of 637 00:38:39,360 --> 00:38:44,680 Speaker 1: an st egg. For junior players two, three, four years 638 00:38:44,719 --> 00:38:50,120 Speaker 1: out who haven't had time to save a lot of money, Uh, 639 00:38:50,239 --> 00:38:52,719 Speaker 1: this is going to be a great concern to them. 640 00:38:52,719 --> 00:38:57,839 Speaker 1: How are they going to pay their bills? Um? You know, Mike, 641 00:38:57,920 --> 00:39:03,680 Speaker 1: I think when you were playing college football. Uh, lots 642 00:39:03,880 --> 00:39:10,080 Speaker 1: of professional team players had offseason jobs. Uh that no 643 00:39:10,120 --> 00:39:14,399 Speaker 1: longer exists because they have enough to carry them over 644 00:39:14,680 --> 00:39:18,040 Speaker 1: and they're paid a sufficient amount. But suddenly, if that 645 00:39:18,120 --> 00:39:22,640 Speaker 1: sufficient amount disappears, they're going to go off their training regiment. 646 00:39:23,080 --> 00:39:26,440 Speaker 1: They're going to be then therefore come into spring training 647 00:39:27,400 --> 00:39:31,840 Speaker 1: flabbier out of shape. These are real concerns and it 648 00:39:31,840 --> 00:39:33,879 Speaker 1: will take them longer to get into shape as well. 649 00:39:34,880 --> 00:39:39,040 Speaker 1: So these are some of the concerns that players will face, 650 00:39:39,680 --> 00:39:45,040 Speaker 1: and I think it will probably be stronger with those who, 651 00:39:45,120 --> 00:39:47,239 Speaker 1: as I mentioned, who are to three and four years out, 652 00:39:47,760 --> 00:39:51,160 Speaker 1: who haven't had the time to save, haven't had the 653 00:39:51,239 --> 00:39:56,520 Speaker 1: discipline to develop into their sport into a full year 654 00:39:56,560 --> 00:40:03,280 Speaker 1: activity with training. How does this lockout affect the minor 655 00:40:03,360 --> 00:40:06,600 Speaker 1: league players? Those are people I always want to look 656 00:40:06,640 --> 00:40:11,520 Speaker 1: out for. Obviously, right now, not much because it's you know, 657 00:40:11,560 --> 00:40:14,440 Speaker 1: if this can get resolved and hopefully a few weeks, 658 00:40:14,840 --> 00:40:17,719 Speaker 1: everything is good. But what if this goes on down 659 00:40:17,800 --> 00:40:21,239 Speaker 1: the road? How will it affect the minor league players? 660 00:40:21,239 --> 00:40:24,600 Speaker 1: So that's a great question, and my simple answer is 661 00:40:24,840 --> 00:40:27,600 Speaker 1: I am not sure. Um it may be that the 662 00:40:27,640 --> 00:40:30,799 Speaker 1: owners extend the lockout to the minor leagues as well. 663 00:40:32,440 --> 00:40:35,239 Speaker 1: If they do, and there's going to be a lot 664 00:40:35,239 --> 00:40:37,359 Speaker 1: of pressure on them to do that because they don't 665 00:40:37,400 --> 00:40:42,200 Speaker 1: want the players who are the focus of the collective 666 00:40:42,239 --> 00:40:45,440 Speaker 1: bargaining agreement, the Major League Baseball players, to use the 667 00:40:45,480 --> 00:40:49,480 Speaker 1: minor leagues as a means to get into shape, uh 668 00:40:49,560 --> 00:40:52,279 Speaker 1: and to be ready for the regular season, because that 669 00:40:52,320 --> 00:40:58,560 Speaker 1: would decrease the owners economic powers in the negotiations. So 670 00:40:58,680 --> 00:41:02,840 Speaker 1: it's a real concern um. And many minor league players 671 00:41:02,880 --> 00:41:07,359 Speaker 1: get minimal salaries or per deems, which makes it very 672 00:41:07,360 --> 00:41:11,440 Speaker 1: difficult to continue in the sport if they're not playing regularly. 673 00:41:12,640 --> 00:41:16,400 Speaker 1: Martin's chair of Golston and Stores Sports Law practice. Looking 674 00:41:16,400 --> 00:41:19,600 Speaker 1: through your lens here, where do you see the imbalance 675 00:41:19,800 --> 00:41:26,880 Speaker 1: between both sides? Um? So? I mean, I think this 676 00:41:27,080 --> 00:41:34,399 Speaker 1: really comes down to two issues. UM. One being the 677 00:41:34,440 --> 00:41:44,279 Speaker 1: owner's desire to avoid paying players tremendous amounts once they're 678 00:41:44,360 --> 00:41:48,840 Speaker 1: past their prime, as the owners would think, UM and 679 00:41:49,000 --> 00:41:52,160 Speaker 1: the players desire to make sure there's a path for 680 00:41:52,880 --> 00:41:57,040 Speaker 1: younger players to get more of the pie and older 681 00:41:57,040 --> 00:42:00,680 Speaker 1: players to receive their due even if they're skills are 682 00:42:00,840 --> 00:42:05,839 Speaker 1: somewhat somewhat emphasized diminished over where they've been. So how 683 00:42:05,840 --> 00:42:11,600 Speaker 1: does that work? Luxury tax? Um, If you have a 684 00:42:11,800 --> 00:42:15,400 Speaker 1: luxury tax for a team three years running at a 685 00:42:15,480 --> 00:42:18,879 Speaker 1: team exceeds the luxury tax of two million dollars, it's 686 00:42:18,920 --> 00:42:22,000 Speaker 1: coming to be hit with penalties. How is it going 687 00:42:22,040 --> 00:42:25,759 Speaker 1: to It's going to want the flexibility to reduce payroll 688 00:42:25,880 --> 00:42:32,480 Speaker 1: there in a means that preserves the competitiveness of the team. Uh. 689 00:42:33,280 --> 00:42:37,840 Speaker 1: While it eliminates the UH sanctions or penalties that exist 690 00:42:39,360 --> 00:42:46,319 Speaker 1: that may hurt veterans more than younger players. UH. By contrast, 691 00:42:46,440 --> 00:42:50,160 Speaker 1: teams may decide that they also don't want veterans and 692 00:42:50,200 --> 00:42:53,160 Speaker 1: are willing this is the tanking issue. UH. They may 693 00:42:53,200 --> 00:42:56,280 Speaker 1: want to bring up newer players from the minor leagues 694 00:42:57,560 --> 00:43:03,240 Speaker 1: at minimal or the minimal the minimum salary UH save 695 00:43:03,360 --> 00:43:05,480 Speaker 1: lots of money, and they'll put off for a couple 696 00:43:05,480 --> 00:43:09,239 Speaker 1: of years being competitive. We've seen this in baseball, We've 697 00:43:09,239 --> 00:43:13,200 Speaker 1: seen this in other sports. UM. It's not something that 698 00:43:13,280 --> 00:43:17,160 Speaker 1: fans enjoy. They want to go to the ballpark knowing 699 00:43:17,200 --> 00:43:21,319 Speaker 1: their team is going to be competitive and have potentially 700 00:43:21,480 --> 00:43:24,719 Speaker 1: a great game and a win. UH. They don't want 701 00:43:24,760 --> 00:43:27,239 Speaker 1: to go in thinking that their team is going the 702 00:43:27,320 --> 00:43:29,759 Speaker 1: home team is going to lose, and only by a 703 00:43:29,840 --> 00:43:35,000 Speaker 1: miracle will it win. UH. So, for the way I 704 00:43:35,120 --> 00:43:38,799 Speaker 1: see it, the issue is going to be what is 705 00:43:38,840 --> 00:43:42,520 Speaker 1: the salary range? What is the luxury tax range? Can 706 00:43:42,560 --> 00:43:46,320 Speaker 1: the two sides get together on that in a way 707 00:43:46,360 --> 00:43:53,040 Speaker 1: that preserves the veterans ability to play, gives younger players 708 00:43:53,040 --> 00:43:59,280 Speaker 1: an ability to play, and gives owners some relief from 709 00:43:59,440 --> 00:44:02,840 Speaker 1: the owner sanctions and penalties. That would exist under the 710 00:44:02,840 --> 00:44:06,799 Speaker 1: current luxury text sports lawyer Martin eat Out, thank you 711 00:44:07,000 --> 00:44:10,520 Speaker 1: so much, sir for joining us on a on a 712 00:44:10,600 --> 00:44:15,120 Speaker 1: serious topic and and your acknowledge is second to none 713 00:44:15,640 --> 00:44:18,160 Speaker 1: in this field. Thank you again, sir, We really do 714 00:44:18,200 --> 00:44:20,960 Speaker 1: appreciate it. Well. Thank you so much for having me. 715 00:44:21,440 --> 00:44:23,960 Speaker 1: This is the Bloomberg Business of Sports show. We're here 716 00:44:24,000 --> 00:44:26,200 Speaker 1: each and every week at the same time, plus online 717 00:44:26,200 --> 00:44:29,480 Speaker 1: wherever you get your podcast. You can catch those Mondays, 718 00:44:29,520 --> 00:44:31,920 Speaker 1: Wednesdays and Thursdays on Michael Bar on Twitter at Big 719 00:44:31,920 --> 00:44:34,960 Speaker 1: Bar Sports, and I'm Mike Lynch at Lynch e w CVB. 720 00:44:35,200 --> 00:44:37,360 Speaker 1: Thanks for joining us. Tune in again next week for 721 00:44:37,400 --> 00:44:40,080 Speaker 1: the latest on the stories moving big money and the 722 00:44:40,120 --> 00:44:43,360 Speaker 1: world of sports. You're listening to Bloomberg Business of Sports 723 00:44:43,360 --> 00:44:45,600 Speaker 1: from Bloomberg Radio around the world.