Comparing MLB, MLBPA Proposed Changes to Salary Minimum, Using Rangers' Roster

The league's minimum salary will likely look significantly different under the new CBA. We use the Rangers' roster to review proposals from MLB and the MLBPA and study their respective impact on payroll.

Major League Baseball (MLB) and the MLB Players Association (MLBPA) have made some progress toward a new Collective Bargaining Agreement, though they still have much to work out. The two sides met twice in consecutive days earlier this week, and proposals from both MLB and the MLBPA included significant concessions and some common ground on critical issues.

One main focus of this week's meetings was better compensation for younger players, specifically pre-arbitration players (those with less than three years of MLB service time). MLB also conceded on any changes to the salary arbitration model, meaning it will likely go unchanged in the next CBA. Regarding pre-arbitration players, the vast majority have previously made the league's salary minimum or slightly more than that. Since both sides want more money going to younger players, the league minimum has been discussed heavily.

The problem is MLB and the MLBPA are far apart in terms of dollars, and even have different structures. MLB has offered a tiered system for pre-arbitration players. First-year players would make $615,000, second-year players would earn $650,000 and third-year players would make $700,000. All three figures would increase throughout the length of the agreement at set amounts. However, as in previous proposals from the league during these negotiations, the salary minimums would be fixed, eliminating the possibility for any player to earn more than their respective minimum.

By contrast, the union's most recent proposal would set the minimum at $775,000 for all players, growing to $875,000 by the end of the agreement, and would not limit the flexibility for a player to possibly earn more than the minimum salary.

To see the impact of either side's proposal, we're going to apply these to the Texas Rangers projected Opening Day roster. Why the Rangers? As of now (since 40-man rosters have been frozen since the lockout began on Dec. 2), the Rangers would have 18 of their 26 Opening Day roster spots dedicated to pre-arbitration players. The four newly-signed free agents (Corey Seager, Marcus Semien, Kole Calhoun and Jon Gray) and the four arbitration-eligible players (Isiah Kiner-Falefa, Willie Calhoun, Brett Martin and Taylor Hearn) would take up the remaining eight spots. 

There are two other guaranteed contracts on the books, but neither player would likely take up an active roster spot. Kohei Arihara's $3.6 million would count as buried salary since he is not on the 40-man roster and José Leclerc will most likely begin the season on the 60-day Injured List as he finishes his recovery from Tommy John surgery.

18 roster spots is a giant chunk dedicated to younger players. And yes, that number will likely be lower when all is said and done. The Rangers are expected to once again be active in the free agent and trade markets once the lockout is over, which means further additions are likely coming. However, this exercise is meant to evaluate the impact of the respective proposals from MLB and the MLBPA.

First, let's establish a baseline. We'll take the 2021 payroll salaries for 18 players that could realistically start the 2022 season on the Rangers' Opening Day roster and also provide a good mix of first-, second- and third-year players.

• Nick Solak: $586,000
• Kolby Allard: $584,250
• Jose Trevino: $584,000
• Adolis García: $575,000
• Nathaniel Lowe: $575,000
• Dennis Santana: $575,000
• Jonah Heim: $574,000
• Leody Taveras: $574,000
• Josh Sborz: $573,500
• Dane Dunning: $572,500
• John King: $572,500
• A.J. Alexy: $570,500
• Joe Barlow: $570,500
• Yonny Hernandez: $570,500
• Spencer Howard: $570,500
• Andy Ibáñez: $570,500
• Spencer Patton: $570,500
• Nick Snyder: $570,500

TOTAL: $10,339,250

Jose Trevino (left) and Nick Solak (right) are heading into their final season before becoming eligible for salary arbitration / Gary A. Vasquez-USA TODAY Sports

Next, we'll look at MLB's proposal. Since this system is split up into tiers, and no player would have the opportunity to make more than their respective minimum, this total is easy to project.

• Tier I - $615,000 (0-1 year of service): A.J. Alexy, Joe Barlow, Yonny Hernandez, Andy Ibáñez, Nick Snyder
• Tier II - $650,000 (1-2 years of service): Dane Dunning, Adolis García, Jonah Heim, Spencer Howard, John King, Nathaniel Lowe, Spencer Patton, Josh Sborz, Leody Taveras
• Tier III - $700,000 (2-3 years of service): Kolby Allard, Jose Trevino, Dennis Santana, Nick Solak

TOTAL: $11,725,000

Finally, the players' offer of a $775,000 minimum across the board is obviously simple to project. However, it's unclear how clubs would compensate certain pre-arbitration players past the minimum. In addition, both MLB and the MLBPA agree to the concept of a bonus pool that would give these players more money if they perform over a certain league-wide statistical threshold. 

However, it's pretty much impossible to project. There is no precedent for the league minimum being this high. Also, both sides are drastically far apart in how much should go into the aforementioned bonus pool, which is not guaranteed since it would be based on performance. So, for now, this becomes simple math: 18 x $775,000.

TOTAL: $13,950,000

All in all, MLB's proposal would cost the Rangers a projected $1,385,700 for their pre-arbitration players while the MLBPA's proposal would give that group a collective bump of $3,610,750.

Final Thoughts

It's understandable why MLB wants to fork out the least amount of money while the MLBPA wants to squeeze every dollar they can out of the league. It's shrewd business to cut costs wherever possible and employees should demand their worth and get every dollar they can.

While the players want to raise the minimum the much as possible, the biggest hurdle is likely MLB's restriction of players having the flexibility to make more than their respective minimum. 

Though clubs have the power to renew the contracts of pre-arbitration players—and those players essentially have no say over what their salary will be—clubs will often give some of those players more than the minimum to build good will for when they become eligible for salary arbitration. Thus, MLB's proposal could impede its clubs' ability to build good relationships with younger players, and maybe even in some cases, make the arbitration process more strenuous than it was before.

MLB and the MLBPA still have time to sort out their differences regarding better compensation for younger players. The good news is they both agree to two crucial concepts that would accomplish that endeavor. The bad news is—as it always is between the league and the union—the almighty dollar.

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