In the Matter of the Arbitration Between Major League Baseball Players Association and the Twenty-Six Major League Baseball Clubs
Major League Baseball Arbitration Panel
Grievance No. 86-2 (1986)
- Written by Steven Pacht, JD
Facts
After the 1984 Major League Baseball (MLB) season, the market for free agents (players who could join any team) was robust. For example, 16 of the 26 MLB clubs (clubs) (defendants) signed free agents who had played elsewhere in 1983, and 26 of 46 free agents changed teams. Free agents after the 1985 season (1985 free agents) experienced a chillier market. Only four 1985 free agents signed with new teams; 28 returned to their 1984 teams. Moreover, only one 1985 free agent received a bona fide offer from a new team, and that came only after his 1984 team announced it would not retain him. Indeed, no 1985 free agent received an offer from a potential new team until his 1984 team disclaimed interest in him. Nor did 1985 free agents receive offers for long-term contracts, unlike in prior years. The MLB Players Association (union) (plaintiff) filed a grievance, alleging that the clubs violated MLB’s collective-bargaining agreement (CBA), which barred the clubs from acting in concert regarding free agency. Specifically, the union argued that the clubs agreed to (1) refrain from pursuing 1985 free agents unless their 1984 clubs declined to retain them and (2) refuse to offer long-term contracts to 1985 free agents. The union cited an October 1985 memo by MLB’s Lee McPhail and the response of MLB’s commissioner (commissioner) and the clubs to McPhail’s memo. The memo (1) argued that long-term contracts were undesirable because many free agents who signed such contracts played poorly or suffered career-ending injuries and (2) urged the clubs to exercise self-discipline and resist fan and media pressure to sign free agents. The commissioner endorsed McPhail’s views, and some clubs responded that they would avoid long-term contracts. The union further showed that, at a November MLB meeting, the commissioner described long-term contracts as dumb. The clubs denied acting in concert. Rather, the clubs argued that each club independently revised its approach to free agents and long-term contracts based on their past bad experiences with them. In addition, the clubs argued that MLB’s economic problems motivated them to alter their practices and that the 1985 free agents simply were less attractive than prior-year free agents.
Rule of Law
Issue
Holding and Reasoning ()
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