Tigers owner Christopher Ilitch opposed raising the competitive balance tax in Major League Baseball’s final offer to the players earlier this week, according to Evan Drellich of The Athletic.
MLB canceled opening day on Tuesday over a labor dispute which centered on the luxury tax. The players wanted the tax at $238 million. The owners moved its offer to $220 million, an increase of $10 million from 2021.
According to the report by Drellich, a senior writer who covers the business of baseball, Ilitch was one of four owners (Ken Kendrick of the Diamondbacks, Bob Castellini of the Reds, and Arte Moreno of the Angels) who objected to raising the luxury tax in MLB’s final offer.
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Requests for comment from the Ilitch or the Tigers weren’t immediately responded to.
On Thursday, deputy commissioner Dan Halem and chief union negotiator Bruce Meyer met for 11/2 hours Thursday to reach a deal that would end the lockout.
The players’ association executive board held a conference call later Thursday. There was no known decision on the timing of the next negotiating session.
Baseball’s ninth work stoppage was in its 92nd day Thursday and is the sport’s first labor conflict to cause games to be canceled since the 1994-95 strike wiped out the World Series for the first time in 90 years.
Negotiations broke off Tuesday after the ninth straight day of meetings in Jupiter, Fla., and commissioner Rob Manfred announced that opening day on March 31 and the first two series for each team this season had been canceled. He said there would be insufficient training time for the March 31 openers.
Negotiating teams then headed home.
The sides had made progress during 161/2 hours of bargaining that ended at 2:30 a.m. Tuesday but were still far apart on areas that include the key economic components of the luxury tax, pre-arbitration bonus pool and minimum salaries. The sides expressed anger at each other’s proposals when talks resumed later that day.
Fitch Ratings said the cancellation will not impact MLB and stadium-level debt ratings for now due to liquidity that included dedicated debt reserve funds sufficient for a season-long stoppage. Fitch said MLB’s media contracts are structured for continued payments in 2022 during a lockout, with the possibility of repayments due later.
“The coronavirus-affected 2020 season demonstrates that the league and its teams have financial resources to withstand a shortened season, albeit with reliance on liquidity support from ownership or debt financing,” Fitch said. “Under a one-month cancellation, we expect MLB will be able to preserve national media revenue at levels close to those agreed to under contract.”
Fitch added “a prolonged work stoppage could also alienate fans and corporate sponsors, which could not only affect revenue in the current season but could drag on the growth of the sport in the longer term.” It also said “team and stadium financings will face rating pressure sooner than the league if the lockout extends beyond April.”
With files from Associated Press.
MLB players start $1M fund for workers impacted by lockout
Locked-out Major League Baseball players are starting a $1 million fund to support workers impacted by canceled games.
The players’ association said Friday the fund will be administered by the union and the AFL-CIO. It will be distributed to stadium workers and others caused financial hardship by baseball’s ninth work stoppage, which was in its 92nd day.
Spring training games failed to start as scheduled on Feb. 26. Commissioner Rob Manfred on Tuesday canceled the first two series for each team during the regular season, scheduled to start March 31.
“Many aren’t seen or heard, but they are vital to the entertainment experience of our games,” union executive board members Andrew Miller and Max Scherzer said in a statement. “Unfortunately, they will also be among those affected by the owner-imposed lockout and the cancellation of games. Through this fund, we want to let them know that they have our support.”
The union listed broadcast and concession crews, electricians, ushers, security, transportation and janitors as among those needed for MLB games.
“This fund is intended to support workers who are most affected by the MLB-imposed lockout but whose livelihoods have been disregarded by the owners in their efforts to pressure players into accepting an unfair deal,” union head Tony Clark said in a statement.