Baseball collusion
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Baseball collusion refers to baseball owners working together to avoid competitive bidding for player services or player jointly negotiating with team owners.
Collusion in baseball is formally defined in the Major League Baseball Collective Bargaining Agreement, which states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs." [1] Major League Baseball went through a period of owner collusion during the off-seasons of 1985, 1986, and 1987.
Historically, owner collusion was often referred to as a "gentleman’s agreement". [2] After the 1918 season, owners released all their players - terminating the non-guaranteed contracts, with a "gentleman’s agreement" not to sign each other's players, as a means of forcing down player salaries. [3]
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[edit] 1966-1968
Before the 1966 season, Sandy Koufax and Don Drysdale decided to hold joint negotiations with the Los Angeles Dodgers. Koufax and Drysdale were the team's star pitchers who had helped the Dodgers win the 1965 World Series. The Dodgers needed them if they were to have any chance of returning to the World Series in 1966. After negotiation for the first 32 day of spring training, they agreed on one year contracts, Koufax for $125,000 and Drysdale for $110,000, the two largest contracts in baseball history. The owners were fearful that other star players would follow their example. [4]
[edit] Collective Bargaining Agreement
In 1968, new union leader Marvin Miller negotiated baseball's first Collective Bargaining Agreement (CBA) with team owners. The owners wanted to prohibit players from holding joint negotiations. Miller was willing to agree if it also applied to the owners. The CBA states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs." [5]
[edit] 1985-1987
[edit] Collusion I
The free agent market following the 1985 season was different than any since the Seitz decision a decade earlier. Only four of the 35 free agents changed teams and those four were not wanted by their old team. Star players, such as Kirk Gibson, Tommy John and Phil Niekro, did not receive offers from other teams. The cover of the December 9, 1985 edition of Sporting News asked, "Why Won't Anyone Sign Kirk Gibson?"[6] George Steinbrenner offered Carlton Fisk a contract, then withdrew the offer after getting a call from Chicago White Sox chairman Jerry Reinsdorf. [7] Teams also reduced team rosters from 25 to 24 players.
In early 1986, the MLBPA filed their first grievance (Collusion I).
[edit] Collusion II
The free agent market following the 1986 season was not much better for the players. Only four free agents switched teams. Andre Dawson took a pay cut and a one year contract to sign with the Chicago Cubs. For the first time since the start of free agency, the average major league salary declined. Free agent salaries went down 16% even though baseball revenues went up 15%. Three fourths of the free agents signed one year contracts. Star players that ended up back with their old team included Jack Morris, Tim Raines, Ron Guidry, Rich Gedman, Bob Boone, and Doyle Alexander. On February 18, 1987, the MLBPA filed their second grievance (Collusion II).
In the Collusion I case, arbitrator Thomas Roberts ruled that the owners had violated the basic agreement (September 1987).
[edit] Collusion III
After the ruling, the owners changed their tactic, but not their intent. They created an "information bank" to share information about what offers were being made to players. Players affected included Paul Molitor, Jack Clark, and Dennis Martinez. In January 1988 the MLBPA filed their third grievance (Collusion III).
January 18, 1988, damages were announced in the Collusion I case. Roberts determined damages of $10.5 million should be paid by the owners to the players. Seven of the fourteen 1985 free agents were awarded a second chance as "new look" free agents. They could offer their services to any team without losing their existing contracts. On January 29, 1988, Kirk Gibson signed a $4.5 million, three year contract with the Los Angeles Dodgers.
In October 1989, arbitrator George Nicolau ruled ruled that the owners had violated the basic agreement in Collusion II. Nicolau determined damages of $38 million. "New look" free agents included Ron Guidry, Bob Boone, Doyle Alexander, Willie Randolph, Brian Downing and Rich Gedman.
Collusion III damages were $64.5 million. Owners would also have to compensate for losses related to multi-year contracts and lost bonuses.
A final settlement of the three collusion cases was reached in November 1990. The owners agreed to pay the players $280 million, with the MLBPA deciding how to distribute the money to the damaged players.
Fay Vincent to the owners:
| “ | The single biggest reality you guys have to face up to is collusion. You stole $280 million from the players, and the players are unified to a man around that issue, because you got caught and many of you are still involved. | ” |
The MLBPA filed collusion charges, arguing that Commisioner Peter Ueberroth [9] and team owners had violated the collective bargaining agreement in the 1985-1987 seasons. The MLBPA won each case, resulting in "second look" free agents, and over $280 million in owner fines.[10]
[edit] Collusion and expansion
According to former baseball commissioner Fay Vincent baseball expansion in the early 1990s was used to raise money for the owners to pay off their collusion debt.[11]
[edit] Collusion: 2002-2003
Players alleged that owners engaged in collusion in the 2002 and 2003 seasons. As part of the 2006 CBA, owners agreed to pay the players $12 million from "luxury tax" revenue sharing funds. The agreement was made with no admission of guilt.[12]
[edit] References
- ^ 2003-2006 Basic Agreement
- ^ Baseball Fever
- ^ Jake Daubert by Jim Sandoval
- ^ Meep! Meep! Baseball owners’ game of collusion
- ^ 2003-2006 Basic Agreement
- ^ Marginal Payroll/Marginal Wins 1985-1989 by Doug Pappas
- ^ Collusions I, II . . . and III (A Hard Lesson Learned) By Maury Brown
- ^ Collusions I, II . . . and III (A Hard Lesson Learned) By Maury Brown
- ^ Peter Ueberroth and Collusion
- ^ The Economic History of Major League Baseball Michael J. Haupert, University of Wisconsin -- La Crosse
- ^ Fay Vincent interview
- ^ Baseball and union settle potential collusion claims By RONALD BLUM, AP Baseball Writer
