Red Sox owner John Henry has a new revenue sharing plan

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We civilians have been talking a lot recently about the injustice of the big market teams paying revenue sharing money to small, losing, but otherwise profitable teams. Today an actual big market owner — the Red Sox’ John Henry — speaks up:

Red Sox principal owner John Henry is calling for Major League Baseball’s revenue sharing system to be overhauled and replaced with a “competitive balanced payroll tax” in an effort to create competitive balance in baseball.

“Change is needed and that is reflected by the fact that over a billion dollars have been paid to seven chronically uncompetitive teams, five of whom have had baseball’s highest operating profits,” Henry responded in an e-mail. “Who, except these teams, can think this is a good idea?”

Henry added, “While the Red Sox are in the 16th largest media market we’ve found a way to be very competitive even though we are funding other teams . . . a system that directly impacts competition has to replace the current system, that hoped to, but ultimately did not cure competitive imbalances.”

The short version: Henry prefers a system where payroll — rather than revenue — is taxed and the money goes to teams who need revenue to meet a minimum payroll that is imposed on anyone who accepts shared dollars. Wanna cut things to the bone? Great, but the rest of the league is not going to subsidize you. Which is fine, because it does prevent the problem of the Marlins or the Royals or whoever hording money and not spending it on players.

But let’s not pretend that Henry is offering this plan up out of the goodness of his heart. The Red Sox, perhaps more than any other team, have a hell of a lot to gain by payroll, as opposed to revenue, being taxed. They have tremendous revenue advantages over everyone but the Yankees, and they still would even if they cut their payroll in half.  Henry’s system would protect all of that dough in ways that it isn’t protected now.

Henry acknowledges this by suggesting that the players be guaranteed a fixed percentage of total revenues, thereby making what any one team does with payroll irrelevant in the aggregate.  I’m suspicious, however, if for no other reason than that the owners have always been really protective of their revenue data. It’s easy to hide revenue. It’s easy to launder it, for lack of a better term, to.

For example, right now the money Henry realizes as a result of the Fenway Sports Group isn’t counted as baseball revenue, even though a lot of it is made by slapping Red Sox logos on things like race cars.  Is that going to be off limits to the players too?  If Henry’s comments about the size of the Red Sox’ media market are any indication they will be, if for no other reason than they prove that he likes to downplay the team’s power and money (Boston is not the 16th largest media market. According to Neilson it’s the 7th, and that’s just the city itself. If you take into account that the Sox basically have all of New England to themselves it’s even bigger).

At any rate, if you key player salaries to some overall revenue bogey, people will argue about what that revenue truly is, and that will lead to more labor strife, not less. Just ask the NFL.

All of that said, talking about the problems inherent in the current revenue sharing system is a good beginning. Ultimately, however, it seems like keeping the same revenue sharing system in place, but simply building onto it some sort of controls that prevent teams from simply pocketing the dollars would be a better bet than totally burning it down and starting with Henry’s new payroll tax idea.

Orioles have reached out to Yovani Gallardo

Yovani Gallardo
AP Photo/Tony Gutierrez
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From Jon Heyman of CBS Sports comes word that the Orioles “like” free agent starter Yovani Gallardo and “have reached out to him” to gauge his interest in coming to Baltimore and what that might cost.

Gallardo rejected a one-year, $15.8 million qualifying offer from the Rangers earlier this month and so his free agency is tied to draft pick compensation, but that shouldn’t hurt his bottom line all that much.

The 29-year-old right-hander posted a solid 3.42 ERA in 184 1/3 innings (33 starts) this past season for Texas and he pitched well in his one ALDS start.

Heyman reported a few weeks ago that the Diamondbacks are interested, and the Cubs, Blue Jays, and Dodgers were tied to him just ahead of the July 31 trade deadline.

Cubs, Cardinals, Giants, Dodgers, and Red Sox all showing serious interest in David Price

AP Photo/Tim Donnelly

David Price has expressed a desire to return to Toronto, where he finished out the 2015 season, but FOX Sports’ Ken Rosenthal writes Wednesday that the Blue Jays “are not expected to be a major factor in his free agency.”

The teams that should be considered serious suitors, per Rosenthal, are the Cubs, Cardinals, Giants, Dodgers, and Red Sox — all deep-pocketed teams looking to contend in 2016. Money is apparently the issue for the Blue Jays, who are currently owned by Rogers Communications.

Price registered an outstanding 2.45 ERA, 1.076 WHIP, and 225/47 K/BB ratio in 220 1/3 innings (32 starts) this past season between the Tigers and Jays, finishing second in the American League Cy Young Award race behind Dallas Keuchel of the Astros.

The 30-year-old left-hander is probably looking for a six- or seven-year contract worth more than $25 million per season. He is represented by agent Bo McKinnis.

Marlins have begun extension talks with Dee Gordon

Dee Gordon
AP Photo/Alex Brandon

Barry Jackson of the Miami Herald wrote three weeks ago that the Marlins were probably going to explore an extension this winter with second baseman Dee Gordon. And it sounds like those talks are underway.

Via beat writer Joe Frisaro of

As a guest on MLB Network’s “Hot Stove” show Wednesday morning, Gordon confirmed his camp has been in talks with the Marlins regarding a multiyear deal. A source told that the discussions are preliminary and have just recently started.

“My agent is doing the talking,” Gordon said on the show. “They’re just keeping me in the loop. I think it’s going pretty well right now. We’ll see how that goes. I’m just playing the waiting game. We’re going to do the right thing.”

The 27-year-old carries three more seasons of salary arbitration, so there’s no real rush to get something done before next spring. Gordon carries quite a bit of leverage after posting a career-best .333/.359/.418 slash line in 145 games this past season for the Fish. He led all major leaguers in hits (205) and stolen bases (58).

Braves sign Bud Norris to one-year contract

Bud Norris

Bud Norris has found a home for his attempt at a bounceback season, signing a one-year deal with the Braves. Jon Heyman of says it’s worth $2.5 million, which is a huge cut from his $8.8 million salary this year.

Norris had established himself as a solid mid-rotation starter from 2009-2014, but had a brutal 2015 season split between the Orioles and Padres with a 6.72 ERA in 83 innings and a late-season move to the bullpen.

In announcing the signing the Braves referred to Norris as a starting pitcher, so joining the rotation for a rebuilding team gives him a chance to get his career back on track with an eye on hitting the open market as a free agent again next offseason. And if he fares well, the Braves could use him to add a prospect or two at the trade deadline.