Monday, December 5, 2016

News Summary for Sport Management


High Point University




MLB and MLBPA Reach New 5-Year Labor Contract Deal
Extends Peace between Players and Owners to 26 Years




Kyle Langdon
Sport Management SMG 1010-02
Professor Lukow
December 1, 2016
The article that I am writing about is how the MLB and MLBPA have reached a new deal involving labor contracts between the players and owners.  This contract marks the first time the two groups have agreed on a contract deal since the infamous MLB strike of 1994-95.  Major League Baseball fans all around North America are rejoicing in the fact that they will not be sitting through another baseball strike over the summer.  The new contract involves things like, the winner of the All-Star Game will no longer get home-field advantage in the World Series, smokeless tobacco is now banned for all new big leaguers, and the possibility of playing games outside of North America, like London.  The contract extends the deal between the two parties for another 5 years, and will usher in a new era of baseball.  Not only are the fans excited about the new extension, even the players are excited to see the deal go through, “Happy it’s done, and baseball is back on” (MLB owner, players’ union agree to 5-year labor contract), Los Angeles Dodgers pitcher Brandon McCarthy stated.  Players also have a minimum wage increase to be excited about, the wage will be increase from the current $507,500.  Now that the two sides have agreed on a collective bargain, the MLB can open its facilities to the players on time for the start of this year’s season.
This story goes very well with what we have been learning in class, specifically about how professional sports is set up.  Professional sports are typically set up in three branches, the labor, or players, the management, or owners, and the governance, or the league’s commissioner.  The deal that took place between owners of major league baseball teams and its players was a deal between labor and management of the MLB.  The negotiations between these two parties is an example of a collective bargaining agreement, which is an agreement in writing between an employer and a trade union, or the owners and players of the MLB, setting forth the terms and conditions of employment or containing provisions in regard to rates of pay, hours of work, or other working conditions.  As stated earlier the collective bargaining agreement between the MLB and MLBPA has resolved issues pertaining to rate of pay, or the minimum wage increase, and hours of work, or the increase of days the season will take to play.  Another way this story relates to what we learn in class is how the new collective bargaining agreement effects how players enter and engage free-agency.  The free-agency system is when players whose contracts have ended get the opportunity to test the waters, and try to sign with a different team.  Players are able to negotiate for a new contract and may choose to extend their length of play with a team or they may ask for more money for their service.  Some of the new changes that the collective bargaining agreement will change include, an increase in luxury tax in future years, and teams under the new luxury tax will have to sacrifice a third-round draft pick if they acquire a qualified free agent.  Also, teams over the luxury tax will have to give up a second and fifth round pick, plus lose money from their international draft.  There are many other things from the article that can be related to what we learn in class, but I believe that these are the most important that can be brought up from the article.
The agreement that took place between the owners and players shows how much the three branches of professional sports actually does in order for us fans to enjoy the sports we love.  Many hours are spent negotiating and dealing so that millions of people all over North America can enjoy America’s greatest pastime, the sport of baseball.





References

MLB, players' union strike new 5-year labor deal. (n.d.). Retrieved December 01, 2016, from http://www.espn.com/mlb/story/_/id/18176138/mlb-owners-players-union-reach-agreement-new-5-year-labor-contract


Davidoff, K. (2016). MLB finally avoids lockout: Here are eight highlights in the deal. Retrieved December 01, 2016, from http://nypost.com/2016/11/30/mlb-finally-avoids-lockout-with-few-dramatic-changes/


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