Giants

How MLB sees players' prorated 2020 salaries affecting Giants, A's

Giants

In late March, Major League Baseball and the Players' Association agreed to a revised salary structure for the delayed 2020 MLB season.

Part of the agreement stated that the players would receive a lump sum of money upfront to cover their salaries for April and May, and then they would receive their prorated salaries for however long the 2020 season ends up being.

Now, it appears MLB is saying that deal doesn't work for the teams anymore.

The Associated Press obtained a copy of the league's presentation to the players, and it paints a bleak picture for the 30 clubs.

The presentation, which the AP says was dated May 12, states that prorated salaries over the course of an 82-game schedule would cause teams to lose $640,000 per game if no fans are in attendance.

But the more alarming part of the presentation is how much each team stands to lose over the 82-game season in local revenue.

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According to an accounting term called EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), MLB has calculated that the Giants would lose an estimated $188 million this year.

 

The A's would stand to lose $115 million, according to MLB's presentation.

The New York Yankees are estimated to lose a staggering $312 million over an 82-game schedule with no fans in attendance. The Los Angeles Dodgers would lose an estimated $232 million.

According to the AP, the Players' Association is "skeptical" of these numbers, and has put in a request for documents proving the estimated losses.

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Earlier this week, MLB owners approved a plan for the season to start on July 4, and it included a 50-50 revenue split with the players. The proposal has been sent to the Players' Association, but the revenue split already isn't sitting well with some players.

It looks like both sides have several hurdles to clear before the 2020 season can start.