MLB: How franchise tags can fix arbitration, save baseball
In a move that would make too much sense to actually happen, using the franchise tag could help end the MLB lockout.
In case you missed it, MLB has come to a standstill.
Putting aside notions that more money would be a plus and that the other side is wrong, league and labor can’t seem to agree on much of anything these days. Sure, the MLBPA is scheduled to make a counteroffer to the most recent league proposal early this week. But precious little optimism exists that an end to the MLB lockout is on the horizon.
A key component of the dispute between players and ownership is service time. Presently MLB clubs control a player for six years before that player is eligible for free agency. For the first three of these years, a player makes the MLB minimum wage. After that comes three years of arbitration, where players argue that their contributions are worth X amount of dollars and the team is best served to argue that said player is actually worth considerably less. If the sides can’t agree (an understandably common occurrence), the arbitration panel steps in and decides who is right.
It’s a messy, imperfect system. And as noted, a system based on conflict between employee and employer. While the game’s elite certainly can and do pull down massive sums over the last of those arbitration years, such as Nolan Arenado in 2019 and and Mookie Betts in 2020, the reality for the majority of the league is very different. For them it really is six years before they get that a chance at that life changing, set your family up for life money.
Understandably, the players want that process to happen sooner. Less service time, faster free agency. Just as understandably, the owners are loathe to give up their window of guaranteed control over relatively cheap labor. After all, that MLB minimum salary does amount to just over 500,000 dollars- no small sum in itself, and especially not when you multiply it by a twenty-six man roster.
It goes without saying that in order to have any kind of understanding, sympathy, or simply a chance to objectively analyze this situation, the vast majority of readers will need to put some financial blinders on. MLB made over $10 billion in 2019. In that same year, the average household income was just over $67,000- which comes out to just 12% of that MLB minimum wage. Honestly, a pretty good case can be made this lockout ends if the league just offers that amount as the raise. On one hand, a billionaire can afford a lot more than 500 K. On the other, calling this a first world problem would be a massive understatement. Tonedeafness abounds on both sides.
Enter the franchise tag. Two of them, to be precise.
These tags would come into play during the last two years of that six years of control, taking the place of two years of arbitration. Technically, MLB teams would retain the option of having six years of control before free agency. But in all actuality, most players would either be extended, traded, or released into the free agent pool after just four years on the job.
Just what would this look like? So glad you asked…