Formation of a new MLB Economic Reform Committee aims to address the league’s financial issues, including revenue disparities between large-market and small-market teams.
In response to the New York Mets’ significant spending and Bally Regional Sports Network’s financial issues, Major League Baseball has established an economic reform committee to address financial concerns within the league. The committee, which includes team owners, executives, and Commissioner Rob Manfred, aims to tackle issues such as revenue disparities between large and small-market teams.
Commissioner Rob Manfred said, “It came out of a recognition of a couple of issues — one new, one old — that were particularly acute for us. “The new one’s the local media situation. I think that people see it as an opportunity to rethink the revenue side of the house a little bit, which has been hard in our sport. People entrenched in their local (media dynamics).”
“We got to find a new model,” Manfred said. “Maybe we ought to be driving the boat, what that model looks like. So, that’s the new challenge.”
The New York Mets, under the ownership of Steve Cohen, are expected to have a record payroll of around $370 million in 2023, making revenue disparity a prominent issue.
An unnamed source the fact that Cohen’s spending has caused “small market teams to go f*ing crazy.”
The New York Mets have reportedly signed a sponsorship deal with Bally’s Corporation, which will include Bally’s branding on the team’s uniforms and around the ballpark.
Buster Olney pointed out the MLB’s hypocrisy, saying “Acute team tanking has been a problem for baseball for a decade — without public complaint from other teams, without even out-loud acknowledgement of the practice. Now the Mets and Padres spend big and they’re forming a special committee? Really?”
Acute team tanking has been a problem for baseball for a decade — without public complaint from other teams, without even out-loud acknowledgement of the practice. Now the Mets and Padres spend big and they're forming a special committee? Really?
— Buster Olney (@Buster_ESPN) February 20, 2023
Ongoing negotiations between MLB and the MLB Players Association suggest potential changes to the league’s economic structure, including salary caps and revenue sharing.
As part of the 2022-26 Collective Bargaining Agreement (CBA) between MLB owners and the MLB Players Association, a new tier was introduced in the competitive-balance tax system known as the “Steve Cohen tax.” Cohen, who is the wealthiest owner in the league and was seen as the only owner willing to spend enough to trigger the tax. Despite this, Cohen has exceeded the new, higher threshold for this year.
PORT ST. LUCIE, Fla. — Steve Cohen says that MLB’s new economic reform committee is “absolutely not” targeting him.
More from the Mets owner on his view of a salary cap, how inflation affected spending, operational losses and how other owners view him:https://t.co/z7SSIJeaLv
— Evan Drellich (@EvanDrellich) February 20, 2023
“The reality is you got to solve your revenue disparity problem before you can even think about a cap. We’re so disparate right now, that it’s almost hard to make — and I mean, literally — the math of a salary cap work.” Manfred said, “you got to be at a certain level to get an agreement with the players.”
MLB should’ve started an “economic reform committee” years ago to hold teams like the Pirates, Marlins, Reds, and A’s accountable for not spending enough, treating their fans with disrespect in the process, and still expecting them to turn out
This is a joke https://t.co/ARnB9NMxV9
— Danny Abriano (@DannyAbriano) February 19, 2023