Phillies

Phillies

In an e-mail to his clients obtained by The Associated Press, agent Scott Boras urged his players (which includes Bryce Harper, Rhys Hoskins and other Phillies) to reject MLB's salary reduction proposal, citing debt financing as the reason franchises are facing financial issues during the coronavirus pandemic.

Boras wrote this:

"Remember, games cannot be played without you. Players should not agree to further pay cuts to bail out the owners. Let owners take some of their record revenues and profits from the past several years and pay you the prorated salaries you agreed to accept or let them borrow against the asset values they created from the use of those profits players generated.

"Owners are asking for more salary cuts to bail them out of the investment decisions they have made. If this was just about baseball, playing games would give the owners enough money to pay the players their full prorated salaries and run the baseball organization. The owners' current problem is a result of the money they borrowed when they purchased their franchises, renovated their stadiums or developed land around their ballparks. This type of financing is allowed and encouraged by MLB because it has resulted in significant franchise valuations.

“Owners now want players to take additional pay cuts to help them pay these loans. They want a bailout. They are not offering players a share of the stadiums, ballpark villages or the club itself, even though salary reductions would help owners pay for these valuable franchise assets. These billionaires want the money for free. No bank would do that. Banks demand loans be repaid with interest. Players should be entitled to the same respect.

 

"Make no mistake, owners have chosen to take on these loans because, in normal times, it is a smart financial decision. But, these unnecessary choices have now put them in a challenging spot. Players should stand strong because players are not the ones who advised owners to borrow money to purchase their franchises and players are not the ones who have benefited from the recent record revenues and profits.

"... Please share this concept with your teammates and fellow players when MLB request further concessions or deferral of salaries.”

Boras used Cubs ownership, the Ricketts family, to illustrate the point.

"Throughout this process, they will be able to claim that they never had any profits because those profits went to pay off their loans," Boras wrote. "However, the end result is that the Ricketts will own improved assets that significantly increases the value of the Cubs — value that is not shared with the players."

Boras' e-mail followed MLB's proposal to the players' association Tuesday of a sliding scale of prorated pay in 2020 in which the highest-paid players would receive the lowest percentage of their prorated salaries and the lowest-paid players would receive the highest percentage of their prorated salaries. In essence, Harper would receive a lower percentage of his $25.4 million AAV than Hoskins would receive from his $605,000 salary.

The players' association found the proposal insulting and is not interested in the sliding scale of pay. Max Scherzer, who is on the MLBPA's eight-man subcommittee, released this statement Wednesday night.

The Phillies are well stocked with Boras clients: Harper, Hoskins, Jake Arrieta, Alec Bohm, Bryson Stott, Vince Velasquez, Cole Irvin, Nick Williams. Boras also, as of this week, represents Rays lefty and former AL Cy Young winner Blake Snell, whom Harper backed up recently after Snell commented on the pay dispute in a polarizing way.

Of course, not everyone agrees with Boras, as outlined in this NY Post piece and in this tweet by outspoken Reds right-hander Trevor Bauer.

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