As a pre-arbitration player, 2012 AL MVP runner-up Mike Trout has no negotiating power with the Angels. So, instead of signing for a salary he didn’t like, he had his contract renewed by the team for $510,000 on Saturday.
That figure is just $20,000 above the major league minimum. It’s unclear whether the Angels initially offered him more. Teams will often make pre-arbitration-eligible players offers and then roll them back if they’re not accepted. The Angels other 21 pre-arby players all agreed to contract; Trout was the only one to have get renewed.
Most teams employ a strict scale for pre-arbitration players in which salary is almost entirely determined by service time, with performance figuring very little into it. That the Angels didn’t throw Trout a bone an kick in an extra $100,000-$200,000 likely has far less to do with them being cheap and more about not wanting to mess with their scale. They’ll certainly be willing to make it up to him later.
Trout, on the other hand, may have some hard feelings over the negotiations. Still, it’s strictly business as usual for major league teams. That pre-arbitration players are paid so little allows teams to fork over $15 million, $20 million or even $25 million per year to free agents. Trout will get his eventually; he’ll be eligible for arbitration for the first time after 2014 and he’ll be eligible for free agency following the 2017 season.
Even Drellich of The Athletic reports that the Boston Red Sox are cutting the pay of team employees. Those cuts, which began to be communicated last night, apply to all employees making $50,000 or more. They are tiered cuts, with people making $50-99,000 seeing salary cut by 20%, those making $100k-$499,000 seeing $25% cuts and those making $500,000 or more getting 30% cuts.
Drellich reported that a Red Sox employee told him that “people are livid” over the fact that those making $100K are being treated the same way as those making $500K. And, yes, that does seem to be a pretty wide spread for similar pay cuts. One would think that a team with as many analytically-oriented people on staff could perhaps break things down a bit more granularly.
Notable in all of this that the same folks who own the Red Sox — Fenway Sports Group — own Liverpool FC of the English Premier League, and that just last month Liverpool’s pay cut/employee furlough policies proved so unpopular that they led to a backlash and a subsequent reversal by the club. That came after intense criticism from Liverpool fan groups and local politicians. Sox owner John Henry must be confident that no such backlash will happen in Boston.
As we noted yesterday, The Kansas City Royals, who are not as financially successful as the Boston Red Sox, have not furloughed employees or cut pay as a result of baseball’s shutdown in the wake of the COVID-19 pandemic. Perhaps someone in Boston could call the Royals and ask them how they managed that.