Major Changes Coming to Minor League Baseball… Maybe.

No doubt many of the readers on LADT are familiar with what might be coming down the pipe for minor league baseball for the 2021 season. However, it does make for a quick post and might be new to some readers. It certainly has some broad implications which may or may not be an improvement over the current minor league system.

The Professional Baseball Agreement (PBA) between MLB and minor league teams expires at the end of the 2020 season, hence the proposed changes for 2021.

Briefly here some of the major proposals from the MLB side. Drilling down it looks like a take over by MLB with proposals that will no doubt polarize the baseball world with the biggest MiLB changes in over 50 years. Some proposed changes would remove areas previously controlled by MiLB for a century or more. That is areas such as team affiliation and league structuring with reference to geography.

More specifically what are the proposed changes?

MLB is looking to dramatically improve minor league baseball’s stadium facilities.  The contention would be that there are too many sub-standard facilities in minor league baseball.

The proposal includes reducing the number of minor league teams by 42 effectively removing 25% of the 2019 teams. It would eliminate the four, non-complex Rookie-level and short-season classifications from the minor leagues. For instance, it would see the elimination of the short-season Pioneer League in which the Raptors play. The Arizona League Dodgers would be safe as they play in an MLB complex, Camelback Ranch.

Some leagues would get smaller, some larger with a greater emphasis on geography. A reported goal would be to cut down on travel distance and therefore time. The AAA International League could grow to 20 teams and the AAA Pacific Coast League reduce to 10.

Teams could change their classification. J.J.Cooper of Baseball America reports, “Not all current full-season teams would survive in this proposal. Some short-season clubs would be asked to move up to take the place of excised full-season affiliates.”

Presently minor league teams sign a two-year player development contract with MLB teams. The new proposal is to have affiliates sign for longer than two years.

The proposal also suggests limiting the minor league system – US-based – to five teams per MLB club.

There is also a plan to limit organizations to between 150 and 200 players under minor league contracts.

J.J. Cooper writes:  “As part of its overhaul, MLB would move the draft back to August and would reduce it to 20-25 rounds. Those players who go undrafted would have the option of playing in the Dream League (or going to independent leagues). The Dream League would be a joint MLB-MiLB venture, but in essence, it would be a quasi-independent league where the clubs would field teams of undrafted players. Some or all of the 42 cities that would lose their minor league affiliations, could be part of the proposed Dream League.” Under such a plan a player like Brett de Geus would not have been selected in the draft as a 33rd selection.

Moving the draft to August would eliminate the need for short-season teams and all that they bring to MiLB players.

Raptors president Dave Baggott said he doesn’t think the MLB fully realizes the value of the lower leagues in indoctrinating players in the systems and values unique to each Major League team.

“Lower-level minors are the most important in my eyes,” Baggott said. “You want to teach kids organizationally how to play baseball.”

With fewer minor league players, the salaries for the remaining players would increase ( in theory). A 50% pay increase is suggested which is actually what the Toronto Blue Jays did on their own this year for all of their players. Eliminating later rounds in the draft and numerous filler players would mean that a much higher percentage of the remaining players received a decent bonus to sign.

Brett de Geus is, in fact, is in favor of any plan that will raise the pay level of minor league players. “It’s really a hard line, especially for me,” said de Geus, who estimated he makes $2-3 dollars an hour without counting the actual baseball games. “I wouldn’t have been drafted if it didn’t go past 25 rounds, but I think the type of living you have in the minors — If there’s any way to get a pay bump across the board, that would be huge for all the players.”

The proposed MiLB changes in the report will take quite some time with hard negotiating as both sides prepare and defend their stakes in the debate. 

This article has 18 Comments

  1. Okay, I don’t get it. Why not just double the pay for minor league players, not like MLB teams can’t afford it.? August draft? So drafted players would lose the opportunity to enter pro ball in June or July. The minor leagues will fight this. Playing baseball in places like Ogden can only improve interest in the game and create more fans. All this seems rather shortsighted.

    1. Well. it has been a cash cow for the MLB teams. Their developmental costs are very low.

      That is about to change.

      Why do my employees think they can plan a “Surprise 66th Birthday Party Monday” and I won’t know?

    2. Doubling the pay does not seem to be as benevolent as it seems unless done as the Jays have done. In my opinion it looks like MLB is trying to cut corners, save money, and then look like the good guy by using those savings to double the pay which is still far too little.

      One way of making the raises pay for themselves is to eliminate nearly 25% of the work force.

      Another major part of the proposal is to reduce the entry draft from 40 rounds to 20-25 rounds.

      This stuff really ruffles my feathers.

      March – 2018 “Later this week, Congress is expected to vote on a new $1.3 trillion spending package to keep the government up and running. Tucked away on page 1,967 of the 2,232-page document is the “Save America’s Pastime Act,” which would allow major-league clubs to continue paying their minor-league players below minimum wage. ” It passed in April, 2018.

      For years MLB has been lobbying lawmakers for such a provision, allowing them to continue paying minor-leaguers peanuts. They argue baseball players are seasonal workers — similar to extra cashiers at department stores around the holidays — not subject to minimum wage laws, and also that tracking hours and overtime would be impossible.

      Minor-league players are paid by their MLB parent club, not their minor-league team. MLB contends that, if forced to pay minor-leaguers minimum wage, they would have to ask the minor-league teams to contribute to salaries, which could put them out of business.

      Can you believe that? MLB, an organization with an antitrust exemption and annual revenues of more than $10 billion can’t pay minor league players a livable wage. The pay is in-season only and is subject to additional taxes and clubhouse fees are taken out. Meal allowance $25/day for three meals. No wonder fast food is the target for players.

      Now don’t get me started.

      1. DC, when this was first discussed, I made it quite clear that I was against the plan. I agree with you that MLB is disguising their magnanimous gesture for 50% increase in player salaries as a repayment through the elimination of several teams and many more players. I think if one was to sit down and do the math, I doubt that MLB would be outlaying much if anything more than they currently are. So it is simply a shift in how the same dollars are spent. As I said when this report first came out, these Dream Teams will be nothing more than independent leagues, and we know how many independent league players get picked up and make it to the ML.

        This is nothing more than placating the “Have Not” teams who cannot afford for good player development programs, or better stated, WILL not pay for good player development programs. Why should the Dodgers suffer when they are not afraid to spend in MiLB player development. As I stated before, the only Dodger affiliate stadium I am not familiar with is Great Lakes. I have not been in the clubhouse of any of the Dodger affiliates, so I cannot comment specifically on those facilities. But the stadiums are first class, and I have never read one negative comment on the facilities. I know the NY Penn League stadiums in the late 90’s were newer, and I know that the stadiums in the lower level Phillies organization were professionally constructed. Clearwater and Reading were older and the clubhouses and other player facilities could have used some upgrades, but they were not bad. The same for Pawtucket. I remember Pawtucket getting some upgrades when they hosted the AAA All-Star game in 2004. Unfortunately, I was not able to get back to Pawtucket that year, and then Andy signed with Toronto. I never saw Syracuse.

        This is just BS and another way to minimize the overall costs for teams like the A’s, Rays, Marlins, Pittsburgh, Cincinnati…If they cannot compete with the big boys, sell. The Dodgers will lose one of their AZ Rookie League teams and their Pioneer League team (Ogden). As of right now, the DSL is not under the rules of MLB and can still have two teams if the parent organization wants.

        It is a shame that the MLB Players Union does not give a rip about the minor leaguers. Certainly the colleges will be better off. There will be a lot more marginal high schoolers going off to college, and a lot more 4 year college players who will no longer be drafted. At first blush many will comment that it is a good thing that the marginal high schoolers are heading off to college. But so many of these players want a shot at MLB and some could (and have) grow into that level if they get the proper training. One other consideration is that even though there may be more high schoolers heading off to college, unless the NCAA increases their scholarship levels for baseball, there will be no increase in their involvement. Right now the scholarship level is pathetically small. Each NCAA D1 program has 11.7 scholarships to field a full team.

        I am afraid that there will be a trickle down diminution of interest in baseball due to less exposure in the small communities, and a perceived less exposure to quality baseball.

        I apologize for the rambling, but this proposed change is wrong and it angers me. If I had a chance, I would like to sit down with a MLB executive and to understand their thinking, because I cannot think of anything positive.

  2. I don’t fully understand the economics of Minor League Baseball. I don’t know who owns minor league teams or how much revenue they bring in for ticket sales, etc. I don’t know how the players get paid beyond their signing bonuses, how they’re fed, how their housing works or anything else really, so I can’t fully form an opinion about the proposed restructuring.

    I do know some guys in the minors right now. They all come back home and live with their parents in the off-season. That’s probably not an option for some guys that might not have the same family support system. I don’t get exact numbers of some of the parents, but they all say “they don’t make much”. So, I’m glad to hear that they’ll have a little more cash in their pockets as a result of this. A $25 / day meal stipend seems pretty horrendous. But, I can’t fully judge that without knowing if the team provides any sort of clubhouse meal on game days, if they get it for only away days, or if they also get it when their at their home field, etc. If the team doesn’t provide any meals at the park, then what the hell can you eat on $25 / day?

    Limiting the teams to 5 for all teams will create a more level playing field between large market and small market teams. Rich teams can’t have more teams just because they can afford to. I’m not so worried about the draft since undrafted players will be able to develop in Independent Leagues and I assume would be able to sign as a free agent to any team that’s interested. I like the idea of a free market system for these guys.

    As far as the minimum wage rule goes. From the quotes I’m assuming that players count all their hours in the gym and on the practice field as hours “working”. The trouble is, it can also be viewed as paid training. So, I’m not sure if minimum wage rules apply here. But, I do think they should be paid enough to live like someone who has a $60K a year job out of college, or a $40K a year job out of high school. But, I also feel that way about kids that go into a trade internship out of high school or to begin a career out of college. Unfortunately, this isn’t always the case.

    When I was growing up, one of my friend’s dad was the school janitor. He lived a modest life, but was able to raise three kids with their mom at home and pay the mortgage with a janitor’s salary. Sadly, this isn’t the case any longer.

    1. A couple years back I wrote a post on the life of a MiLB player. I will look for it. Many of these kids do not get signing bonuses more than $1,000. Their salaries are less than $10K a year for most of these kids. They are only paid April thru August (5 months) by their MLB parent company. And then some get the golden opportunity to get to play in such havens as Venezuela and dirt poor towns in Mexico during the winter for more pennies.

      Below is an article that might give you a little more understanding of the life of a MiLB player.

      https://www.pennlive.com/sports/2019/07/minor-league-baseball-salaries-hover-around-poverty-line-some-are-pushing-for-change.html

      In addition, Phil Jones wrote something in the last couple of days that you might want to go back and read.

  3. AC. I will repost my earlier comment about the minor league salaries for anyone interested
    “Dodger BlueMom asked yesterday about salaries of minor league players and how that works. She got great, accurate answers to her question. But I really want to elaborate on this as I bet many folks don’t realize just how little minor leaguers make and the huge disparity between the minors and the show. Major league players are part of a union. Minor leaguers have no union. As mentioned yesterday minor league players are paid by the month, usually 5 months for the season. They are not paid the other 6 or 7 months. While the monthly amounts go up fractionally each year there isn’t likely to be any movement in this until the current agreement runs out next September. There’s talk salaries will go up maybe 50%, hopefully. The minimum MiLB salaries for months worked are: AAA = $2150 to $2400, AA = $1700 (increased $100 per year), A+ = $1300 to $1500, A- $1150. I think meal money is around $25 a day with clubhouse and laundry fees paid out of this. (Meal money has been reduced in MLB to $30 a day, I believe, due to the elaborate spreads available to both teams in clubhouses. It was $105.00. I had friends who killed for a spring training invite so they could pocket the $105 bucks before they got sent down) A minor leaguer on the 40 man roster and not in the show makes $44,000 minimum their 1st time on the 40 man. The 2nd time, it increases to 88K. When a minor leaguer gets called to the big club, he receives a prorated amount while the time there of the Major League Minimum of $550,000. A couple weeks called up can certainly help a AAA guy significantly. I hope this isn’t too much information but I don’t think most fans understand the disparity between the Minor leaguer salaries and the jump to Big League contracts.”

    1. pj – if you look in the first link I posted above you will note that the minor league pay scale has not really increased since I posted the article in 2013.

  4. Thanks for responding. I’ll read and get a refresher. Thanks Phil, I did read that the first time, but didn’t realize those monthly figures were in season only. That’s pretty bad. Well, beyond pretty bad really.

  5. Back to Maeda. I read another blog and some of the quotes and I’m not too pleased. IMO he should be grateful they give him as many starts as they do. He’s basically the slightly better version of Ross Stripling and even that’s debatable. I was surprised to hear that they did indeed try to renegotiate his contract as a reliever, but they couldn’t come to an agreement. Sorry bro, but you’re not great, not bad, don’t throw a lot of innings and your on the wrong side of 30 and your best year was your first year.

    I don’t think he even has that much trade value because if he’s really good, he gets paid accordingly and I think he has some sort of trade bonus or kicker that makes his salary less attractive if he’s traded.

    So, what to do? He clearly decided that he doesn’t want to pitch out of the pen. But, I don’t think you HAVE to trade him.

  6. AC said, “if they cannot compete with the big boys, sell.” DC said, “they argue that baseball players are seasonal workers”. This whole idea does not make sense to me. It seems they are trying to level the playing field to make it equal. I agree that the teams that do furnish good facilities and other benefits should not be punished. Not even minimum wage? shameful.
    These young men deserve more and the parent clubs need to step up and pay up if they want a successful farm club and future help. Also do you think that with the colleges paying their athletes for some things will effect signing with a minor league club?

    1. Allowing players to receive pay for endorsements while in college is more for the revenue producing sports like Football and Basketball. It will not have any effect on Baseball or other minor non revenue producing sports. But that is another can of worms that will be going through growing pains to make sure that conferences like the SEC do not run away and hide from the other conferences.

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