Money Bag

Baseball players to make $3.5 billion this year — they should be making more


My dad was a federal government employee. For years we lived in Flint, Michigan where, back then anyway, everyone in the city worked for General Motors. Big UAW town, obviously.

His favorite part of that whole dynamic — apart from when his Toyota would get keyed in parking lots and, later, have the windows bashed in — was the difference between how government salaries were reported compared to UAW salaries. If government workers got a raise, it was always reported by the Flint Journal in the aggregate: “Government employees get $1 billion raise,” the headline would scream, along with some sidebar about how Gerald Ford was busy bankrupting the nation. If the UAW got a new contract it’d be reported by the hour, as in “Autoworkers get 50 cent raise,” with a sidebar about how crazy inflation was and how 50 cent raises didn’t get you jack squat.

I bring all of this up because you’ll see a roughly similar dynamic once this news starts to circulate, courtesy of CNBC:

Baseball been very, very good to a lot of people.

The 30 teams in Major League Baseball will collectively pay their players some $3.45 billion this year, according to data tabulated by The Associated Press . . . By way of perspective, at an average of $4.6 million, the average player would make more than 100 times the average American wage earner, based on Social Security Administration data.

Expect a lot of “those greedy players” rhetoric shortly!

Of course, absent in this report and presumably absent in the impending rhetoric is the fact that baseball as an industry brought in a record $8 billion+ last year, meaning player salaries are around 43% of revenues. Which seems high — depending on the industry, labor usually costs anywhere between 10 and 30 percent of revenues — but shouldn’t be all that surprising considering that in baseball, labor and the product being sold is one and the same. Indeed, the ballplayers and the games they play are the only reason the owners make that $8 billion. They are not a mere input to a more valuable finished product. The owners are not fabricating sheet metal before they can sell their product and stuff.

So enjoy your $3.45 billion, ballplayers. To be honest, I think you should be making more.

Orioles have reached out to Yovani Gallardo

Yovani Gallardo
AP Photo/Tony Gutierrez

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.