Baseball Player Salaries

Paper Summary:

The paper addresses the issues of collective bargaining, free-agency, arbitration, owner/player relations and salary structure all from the perspective of human resources. The paper reviews relevant literature and explains that the methods being utilized in major league baseball for basing players' pay provides the players with motivation to increase their marginal revenue product (MRP) so that the owners will have a basis for increasing their salaries in future negotiations. This study concludes that the performance of a player in major league baseball is a fair and equitable method to use for the basis of a player's salary.

Outline:
Objective
Introduction
Review Of The Literature
Summary And Conclusion

From the Paper:

"According to Fields (2001) many and often are the debates surrounding the issue of whether professional baseball players are actually worth the exorbitant salaries they are paid. Stated is: "A recent report from the Independent Members of the Commissioner's Blue Ribbon Panel on Baseball Economics concluded that from 1995-99 only three teams (Cleveland, Colorado, and New York Yankees) achieved profitability (Levin et al. 2000). These factors have resulted in arguments for revenue sharing, a tax on clubs with payrolls over a fixed threshold, and other measures to attempt to lower players' salaries.""

Sample of Sources Used:

• Wiseman, Frederick and Sangit Chatterjee, (2003) "Team payroll and team performance in major league baseball: 1985-2002." Economics Bulletin, Vol. 1, No. 2 pp. 1-10
• Fields, Brian (2001) Estimating the Value of Major League Baseball Players. East Carolina University Department of Economics 2001 July 26.
• Bodley, Hal (2002) Yankees in Taxing Situation. USA Today. November 13, 2002. Online available at: http://www.usatoday.com/sports/baseball/2002-11-12-yankees-payroll-tax_x.htm.
• Depken, Craig A. II (1996) Free-Agency and the Competitiveness of Major League Baseball October 1996 The University of Texas at Arlington. Online available at: http://econwpa.wustl.edu/eps/io/papers/9610/9610001.pdf.
• Fishman, Peter (2002) Competitive Balance and Free Agency in Major League Baseball May 2002 Duke University Online available at: http://72.14.203.104/search?q=ca che:n RdzFB6U3LcJ:www.econ.duke.edu/Journals/DJE/dje2002/fishm an.pdf+major+league+baseball:+free+agency,+&hl=en&gl=us&ct=clnk&cd=23.

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