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Minimum salary to rise to $480,000 in new labor deal

Nov 19, 2011, 7:07 PM EDT

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The Associated Press reports that MLB’s minimum salary will increase from $414,000 to $480,000 under the league’s new CBA set to go into effect next week.

It is expected to continue to increase over the duration of the deal and could soon top $500,000.

A couple of other new reveals:

– Super-two arbitration will not only stick around but will include a few new members each year. From now on, the top 22 percent of players with two-plus years service time will be eligible from arbitration, up from the current 17 percent.

– The luxury-tax threshold will remain at $178 million next year.

– There will be two separate tax systems in place for the signing of draft picks and international free agents. A tax of 75 percent to 100 percent of the amount exceeded will be imposed on teams that go over the threshold and there will also be some threshold that causes the loss of draft picks.

Contradicting what was reported yesterday, there will not be a tax on low-payroll teams. The subject was debated, but it appears that no system could be agreed to.

  1. mcs7584 - Nov 19, 2011 at 7:22 PM

    When’s the last time you got a $66,000 raise?

    • paperlions - Nov 19, 2011 at 7:54 PM

      When was the last time you were one of the best 750 talents at something in the world that was a marketable skill and millions of people were willing to pay to watch you work?

      • Ben - Nov 19, 2011 at 8:12 PM

        Last night. With your mom.

        (prepares for massive downrate)

      • pjmarn6 - Nov 22, 2011 at 12:42 AM

        you forgot to add the word “gullible” before the word people. This is no long a national sport. It is a national business with a hell of a lot of people being made millionaires by a gullible group of foolish people.

      • pjmarn6 - Nov 22, 2011 at 12:57 AM

        And name me 750 actors who get at least $500,000 a year. A little info.
        So for those of you who are considering a career in daytime television, or those whom are just curious what the stars earn, here’s a run-down of a typical annual salary for year one, five, and 10 or more years.

        1st Year Mark – $72,800 – $156,000/per year

        5 Year Mark – $156,000 – $312,000/per year

        10 Year Mark – $208,000 – $520,000/per year
        Gee whiz, they should have been playing baseball instead of learning to act. And a hell of a lot more people watch them every day than watch a baseball team.

    • genericcommenter - Nov 19, 2011 at 8:15 PM

      Never, but to add some context.. it’s around a 15% raise, which is nice but not unheard of. I would say in a job when I increased my production to warrant a 15% raise I have received one. I had a commissioned job where that was more than doable. I’m sure when I was young I probably got something like that after I started working a low end job ( say, from $5 to 5.75/hr), and plenty of people get raises in the 100s of % when they complete a degree or training program. But I’ve never been in a union or making minimum wage at the time of an increase- so I’ve never gotten a raise for just being there.

    • clydeserra - Nov 19, 2011 at 8:37 PM

      Nobody got a raise. The minimum Salary for first year players went up based on industry revenues.

      • uyf1950 - Nov 19, 2011 at 10:19 PM

        Don’t you think an increase in first year player salaries from $414K to $480K will have a ripple effect on 2nd and 3rd year pre-arb players. Can’t very well pay a 2nd year pre-arb player in 2012 less then the minimum a 1st year player will make.

      • clydeserra - Nov 19, 2011 at 10:28 PM

        Yes. there will be a ripple effect.

        But that is also not a raise. Its the laborers getting more money based on the revenues that the owners feel they will get in the future.

        Players will get merit raises (arbitration new contracts) just like before.

  2. maco88 - Nov 19, 2011 at 10:09 PM

    It’s about time! I mean c’mon let’s be real. Who can honestly live on only $414,000 a year! 😉

    • JBerardi - Nov 20, 2011 at 9:46 AM

      There’s plenty of players for whom a year of the MLB minimum is their one big payoff for several decades worth of dedication to baseball.

      It’s like, if you’re modestly successful actor, and some director comes along and wants to cast you in a big movie and pay you $500,000 for it, you dont go “oh, I don’t need that, I live on $50,000 a year”. You take everything you can because you don’t know if or when another opportunity like that will present itself.

      • pjmarn6 - Nov 22, 2011 at 12:51 AM

        You better read and learn what actors really earn. Especially what the ones make when they get a co-starring role. A lot of them get paid by the day. And the ones who get their names all the way down there don’t get anything near $500,000.
        And you might remember that you can look up a players stats for his career on this site. They used to put up his salary and poff they took it down. Seeing all those millions for bench warmers and subpar players, must have created a back lash.

  3. spudchukar - Nov 20, 2011 at 10:11 AM

    When you toil in the low minors for $600 per month, the 1/2 mil is a welcome change.

  4. 27xwschamps - Nov 21, 2011 at 2:48 AM

    I am an american man working 9 1/2’hrs a day driving a city transit bus in Austin TX the last 25 yrs making 48K a yr.. I would gladly take 400k plus and not BITCH about it ..👍👍👍👍$$$$$

    • Kevin S. - Nov 21, 2011 at 11:43 AM

      Unfortunately, you don’t have a particularly unique or socially-valued skill set. Deal with it.

      • pjmarn6 - Nov 22, 2011 at 12:39 AM

        Kevin.S. you shouldn’t put down 27xwschamps. Every working person has a unique and scially-valued skill. You take away one of these job catagories and you will see how fast he and his co workers are needed. Matter of fact, he has more mental faculties than you in seeing the absurdity of giving $480,000 to an untested and untried player. And giving these people who have a tiny bit more eye-hand control 10 times what a teacher gets is ridiculous. As ridiculous as you defending them.
        A good teacher teaches the future society of America. What does a mediocre bench warmer do? A teacher will teach over 1200-10,000 children in their lifetime how to act in society and be a productiver member. A bench warmer will be laughing up his sleever at all the stupid people who are making him a millionaire.

  5. mox19380 - Nov 21, 2011 at 10:29 AM

    “Contradicting what was reported yesterday, there will not be a tax on low-payroll teams. The subject was debated, but it appears that no system could be agreed to.”

    I’ve argued for a long time that the biggest detriment to the quote: lack of competitive balance in baseball (if there is in fact an inbalance) had more to do with the lack of salary floor rather than a problem of big clubs outspending. I’m surprised there will not be a salary floor and penalty for not spending a minimum amount of money for another 6 years. I always though that was a simple solution preferrable to re-alignment, salary caps, playoff expansion, etc.

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