Long time readers of Baseball Musings know that I favor all players being free agents all the time. There would be no draft, no reserve clause. When your contract is up, you sell yourself to the highest bidder, even at the minor league level.
Tom Tango looks at the cost of free agency, and his ideas I believe support the above position:
Let’s jump that up to 5MM$ per win as the fair market price. Teams are therefore saving 1MM$ because of “subsidies” of the MLBPA: the pre-arb players especially, but also 1st year arb-players, are giving teams huge discounts (as per CBA).
However, teams are not paying 5MM$ per free agent win, but rather at least 7MM$ or even 8MM$ (and more in some cases) per win. What’s happening is that teams, even though they are offered a HUGE subsidy by the MLBPA have decided instead to take (most of) those savings and throw it right back to free agent players. Even though the actual value of those players is to generate 5MM$ per win, they instead get 8MM$ per win.
If all players were free agents, would they actually be getting 8MM$ per win? Well, that would mean they’d get 8 billion$ in salary above the minimum (plus the 0.5 billion$ of minimum), for a total of 8.5 billion$… compared to the 9 billion$ in revenue. It’s unsupportable.
So instead of young players subsidizing old players, universal free agency would pay everyone fairly.
from baseballmusings.com http://ift.tt/1XAWkBa
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