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Monday, January 22, 2007
Slave Wages
By Tangotiger, 01:18 PM
MLB operates on a weird system. They preallocate their MLB payroll based on their revenues (say 55%-60% of revenue goes toward their players). However, according to The Harball Times Annual 2007, the amount they pay their arbitration-eligible players is half what they pay for free agents, on a per-win basis. You would expect that they’d pay the market rate for the free agents, and pay half the market rate for the arbitration players, and peanuts for the slave players, so that overall, they’re paying way under the true marginal $ per marginal win. They don’t.
Anyway, looking at arbitration players:
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