Skeptical of MLB’s claims, Tony Clark sets winter position for players’ union

The last time Major League Baseball and the Players Association talked economics, they entered into more than two months of public haranguing, something that both sides regret — at least, from a public-relations standpoint.

“First, let me say that it was unfortunate then and remains unfortunate that the disagreements manifested themselves publicly in the fashion that they did,” MLBPA executive director Tony Clark said. “My hope moving forward is the same as it was then, which is that any dialogue, even with the disagreements, is conducted much differently.”

Détente, however, will be put to the test shortly. The sides have to talk economics again this offseason, about not only potential changes for 2021, but how they want to handle a collective bargaining agreement that’s a year from expiration. Whether both sides operate differently half a year later is to be seen. There’s still some runway on the calendar before the CBA expires, and everyone has a greater understanding of COVID-19 than they did in the spring.

But resolve, at the least, won’t be lacking. Owners’ revenues tumbled, and the players just finished a season that was preceded by weeks of fighting over their daily pay. That experience, in Clark’s mind, was equivalent to a work stoppage.

“In essence, going back to March, what manifested itself thereafter, we view largely as a lockout,” Clark said. “There are lines that can be drawn between what happened this year and what may have happened historically. But I continue to remain optimistic that as a result of that experience, we have an opportunity and take advantage of the opportunity, to work through our respective disagreements to the benefit of the game moving forward.”

As this offseason begins, Clark’s position on the sport’s economics appears straightforward: He is open to discussing change in virtually any form, short term or long. But if MLB asks for concessions on the basis of its financial losses alone, the union sounds unlikely to be moved. Not without a lot more information, anyway.

“We don’t accept at face value any of the claims about the extent of operating losses, while acknowledging that 2020 was a challenging year,” Clark said.

In recent weeks, team owners and commissioner Rob Manfred have spoken publicly about the league’s bill from 2020, estimating the shortened, fan-less season created a loss between $2.7 billion and $3.1 billion, depending on the accounting method. Typically, those numbers cannot be verified independently.

MLB declined comment for this story.

“Not for one second am I implying that 2020 wasn’t without its economic challenges. We understand that,” Clark said. “But we also understand that attempts to shape a narrative during the World Series — or otherwise prior to seeing what happens during the offseason — rather than continuing to focus on (the postseason) and be positive, is an interesting position to take.”

MLB also is carrying $8.3 billion in debt, Manfred has said.

“Understand that debt, the word ‘debt,’ resonates with all of us, even on a personal level,” Clark said. “And we normally attribute that to what our individual experiences have been. Debt as car notes, home mortgage, student loans, etc. On a corporate level, debt can be something much different. And historically, in most, if not every industry, business people take on debt particularly during an economic downturn, because they can borrow at low interest rates and invest in their futures.”

The MLBPA will always treat league financial assertions skeptically. But the union’s lack of faith in the league’s numbers could be greater following a spring and summer of fighting over the same issues.

Back in May, when the sides were sorting out the truncated season, the league made a presentation to the union about the financial state of the sport and the damage a potential season without fans would create. The union wanted more information, underlying data, and made a formal request for further documentation. MLB, however, felt the inquiry was overly burdensome and broad, and responded to only a small slice of it, leaving the union unhappy.

“It wasn’t satisfactory,” Clark said. “There were a number of questions that remained.”

What form the talks will take this offseason is unclear. Besides figuring out their approach to the expiring CBA, the sides also have to discuss what practical changes need to be made for 2021 on the basis of COVID-19 alone, with the potential for adjustments that could alter the sport’s economics.

“Both (practical and economic) discussions are front and center, and it won’t be until we sit down formally and have dialogue with the league that we’ll have an appreciation as to what either may look like,” Clark said. “Particularly against the backdrop of what 2021 is going to look like from a COVID standpoint. But both are on the table.”

The players sought changes to market restrictions and club behaviors prior to the pandemic. For Clark, those desires won’t just go away in a discussion of, say, a short-term deal.

“(With) our concerns about the existing system not changing — and not having changed as a result of 2020 — we look forward to having any conversation,” Clark said.

By the same token, players won’t forget what they’re currently promised by the CBA for 2021, including a full schedule for next season. But owners likely will want to play a short season again next year if the alternative is to play in empty or mostly empty parks for a lengthy time.

“At this point, our players expect to be in spring training in February,” Clark said. “Our players expect to play 162 games under the rules of the current collective bargaining agreement, that’s our expectation at this point. Unless or until the league presents something different that requires further discussion.”

Although Clark did not say as much, his message is implied: a full schedule includes a full season’s pay for players. So while the players could themselves wish to pursue a shortened schedule — they could come to believe they need more off days because of COVID-19 — the players will not bail on 162 for the owners’ benefit alone.

The two sides are already talking informally about whether to repeat the universal designated hitter and the expanded postseason. The returns of both in 2021 would have to be newly agreed upon, and both have dollar signs attached to them.

Players have long wanted the designated hitter in both leagues because it provides an extra well-paying job for teams to fill, in addition to the potential benefit of keeping pitchers healthy.

The expanded playoffs is a heavyweight money matter, with MLB telling the union in May that it would take in $787 million in 2020 national revenue during the postseason. More games means more money for the league, as the players are well aware. More playoff teams could also mean reduced incentive for teams to compete for free agents, essentially rewarding mediocrity. A league counterpoint could be that an increase in spots could have the opposite effect, more teams spending.

(Putting a runner on second base in the 10th inning of tie games again will also be discussed, but it’s not an economic issue. The new rule received perhaps a surprising level of support from players, who benefited from less wear and tear on their bodies and reduced roster shuffling.)

All of this is to be sorted while a free-agent market unfolds. Many in the industry feel the winter will be difficult for players. Clark did not say whether he expects the same.

“I think this market will serve to distinguish between ownership groups,” Clark said, “and those interested in competing versus those who are sacrificing that competition level, or winning, for the hope of maximizing short-term operating revenue.”

As the union publicly nudges MLB to share more financial information, it’s unlikely that the league will do so substantively, at least not voluntarily. MLB teams, except for those owned by public companies, simply are not required to share much with the outside.

The league does annually send some audited financial information to the Players Association, as required by the CBA. MLB officials have noted in the past that the union has the right to challenge those numbers, but has not exercised it.

On Thursday, the Atlanta Braves’ parent company, Liberty Media, disclosed its third-quarter figures — numbers covering a three-month period that ran through Sept. 30. In that stretch, the Braves reported an operating loss of $16 million, compared to a profit of $21 million in the same time frame in 2019. Their revenue through the third quarter was nearly cut in half, to $110 million from $212 million last year.

A grievance filing based on finances could also be revelatory. The union is expected to file one against the league this offseason, alleging that MLB did not follow one of the requirements of the deal they struck back in March. MLB was required to make its best efforts to play as many games as possible in 2020, and the union has alleged it did not.

“Any financial information that we do receive is confidential and will remain so,” Clark said when asked if there’s any recourse to gain greater clarity on the numbers. “As it applies to information that is being represented publicly, against the backdrop of that confidentiality, it is what it is.”

No meeting between the sides to talk economics is scheduled yet. It may wait until MLB finishes its owners’ meetings and the union holds an annual players’ meeting, both this month.

(Photo of Clark: Morry Gash / Associated Press)