https://www.forbes.com/sites/maurybrown/2018/02/12/collusion-tanking-debt-and-baseballs-dark-labor-history-resurfaces-in-2018/#46c5419f176e
For those that don’t recall, both the Chicago Cubs and Houston Astros went about radical roster reconstruction under new ownership. The matter was simple to Ricketts of the Cubs and Crane of the Astros: bloated contracts for veteran players were hampering flexibility. The term “blowing it up” became the term before “tanking” but the idea that stripping rosters down to young players that saw lower salaries would cause a case of sinking in the standings. There’s the side benefit of landing at the top of the draft heap when you lose a massive number of games.
In 2017, the Astros won 101 games and eventually won the World Series. In 2016 it was 84 wins and 2015, 86 wins. Not bad. But in 2014 they lost 92 games, 2013 there was 111 losses, and 107 losses in 2012, and 106 losses in 2011. For the Astros, the idea was pain would eventually equal gain, and as the parade in Houston showed, it paid off.
The bad thing is, every owner in baseball looks around at what the one team did to win the World Series and says, “We need to do that.”
“Our Clubs are committed to putting a winning product on the field for their fans,” Manfred said in a statement to rebut Clark. “Owners own teams for one reason: they want to win. In Baseball, it has always been true that Clubs go through cyclical, multi-year strategies directed at winning.
There are larger concerns around what clubs are doing to improve themselves, or rather, what they’re not doing. This “invest in homegrown talent” also acts as a cover. The Pittsburgh Pirates were in a position over the last two off-seasons to improve themselves to get past just the Wild Card. Instead, they held pat, and this off-season traded Andrew McCutchen to the Giants and Gerrit Cole to the Astros. This does not fit the league profile for improving in a five-year cycle.
Other clubs have a legitimate reason for down-cycling. The Los Angeles Dodgers, who have not only spent large in free agency, but at record levels, have been in violation of the league’s debt rule. That was allowed as part of the sale to Guggenheim Partners, but now frowned upon given that the sale was completed in 2012. And LA and the Yankees both have reasons to get under the Luxury Tax threshold. Not only have changes to the tax penalties made it more painful, by getting under the threshold, the tax penalties for the two who have been consecutive offenders of the Luxury Tax will see the penalty drop to 20% by going back under. That plays into the bumper crop of free agents in the 2018-19 free agency class that features the likes of Bryce Harper, Clayton Kershaw, and Manny Machado.
At some point, either that smoking gun surfaces, or it doesn't. If it doesn't, then the real focus on baseball's labor landscape shifts to when the current basic agreement between the players and the league expires on Dec. 1, 2021. If the players are unhappy about how matters have transpired, they'll need to dig in and try and get better concessions in the next deal. If the landscape continues to move toward clubs investing in young, developed talent, then getting players into salary arbitration early might be one matter they could go after. But even if that's not one area they do chase, it's clear that areas where salaries can increase has to be more the focus than the last time. There's little doubting that matters went the league's way in 2016 with the current labor agreement. If they truly want to gain from the increased revenues that the league is seeing, they could upend the mindset put in place since Marvin Miller was executive director beginning in the 1960s. Tie salaries to baseball related revenues that have now surpassed $10 billion. That would mean a cap system more inline with what other pro leagues currently have.