A recent topic of interest and scrutiny in the sports world — the salaries of minor league baseball players.  It comes after MLB commissioner Rob Manfred made comments defending how much minor leaguers are paid. There are more than 5,000 players in the minor leagues, and the majority make between $4,8000 and $14,700 each year, with most earning less than the federal poverty line.  John wolohan, professor of sports law at Syracuse University's David B. Falk College of Sport and Human Dynamics.

Closing Bell

Salaries of Minor League Baseball Players Under Scrutiny Following Comments from MLB Commissioner Rob Manfred

Welcome back to cheddar news is closing bell. Everyone, let's talk the biz of sports a recent topic of interest and scrutiny in the sports world. Are the salaries of minor league baseball players. What comes after an MLB Commissioner rob Manfred made comments defending how much minor leagues are paid. There are more than 5000 players in the minor leagues and the majority make between $4800 and $14,700 each year, Most earning less than the federal poverty line. So joining me now is john Wall, a han professor of sports law at Syracuse University, john thanks so much for coming on. So Manfred recently asked by a reporter of mine early players aren't paid more because owners can't afford to or just because they simply choose not to. Here's his response, he said, quote, I kind of reject the premise of the question that minor league players are not paid a living wage. End, quote, What's your reaction to these comments and the ensuing criticism? Yeah, Well the criticism is well deserved. I mean, minor league players are paid At a, at a rather low level. I mean if it's a class a, so a level ball, they're only paid at $500 a week if they're not on the 40 man roster. If they're double A ball, which is the, The second level that's $600 a week and if they're up at the triple a level, right Right below the majors, they only make $700. Um, so, so while $700 might seem like a lot of money. They're also only paid during five months of the season. Um So It's basically $14,000 for the year. Yeah, it is dramatically low. Well I know the MLB did actually raise salaries for minor leaguers prior to the 2021 season, but it also cut 42 minor league teams here. Um so what is this show about the state of this? What do you think of these cuts? And do you think more cuts might be on the way? I'm not sure more cuts are on the way they've they've restructured so that there's there's a um you know, three teams for every every major league system, so the cuts um are dramatic. Uh But I don't know if they're going to be any more, I don't know how they can cut any. Mhm. Well, I know minor leaguers, as you mentioned, still make much less than major league players who according to the ap make an average of 4.4 million each year. So there is a major disparity, it would seem obvious to to lessen that disparity, but obviously there are other factors at play here. Walk me through some of the potential next steps. Well, um I guess the first thing we need to look at is major league baseball did just agree to pay a group of minor league players, 100 and $85 million to settle a um a payment um lawsuit, basically they were being sued because they weren't paying minimum wage, they weren't paying overtime um under California and Arizona and florida laws. And so so they did come to a settlement for 100 and $85 million that's going to be redistributed to to the minor league players who fall under that timeline. In addition, they've also agreed that they will start to pay or allow players to be paid during spring training and other training periods up until this settlement, they weren't allowed to get paid until the season started, so they only had a five month window where they were getting paid at all. Well, I know um in the wake of that settlement that Senate Judiciary Committee recently sending a letter to the MLB and the Commissioner Manfred asking for information about the league's antitrust exemption, especially on how it impacts minor league players and so explain what this exemption is and the impact that it could have. Sure. Um So Major league Baseball has been exempt from the anti trust law since 1922. Um The Supreme Court and Federal Baseball case um agreed that are basically determined that major league Baseball or baseball was outside the scope of the antitrust laws that it wasn't a game um where it wasn't a a business um that was covered under the antitrust lot. Since then, they've they've come to the agreement that where they recognized that baseball could be, but it's not the job of the courts, it's up to Congress to to Bring Major League baseball under the scope of the antitrust law. Um the other thing that's important to remember is that major or the Congress had a chance in 1998, uh, to bring baseball under the antitrust or to remove baseball's antitrust exemption and they failed to do that. Um in 1998, they passed what was called the Curt Flood Act. And as part of that, they took major league baseball players and they said that baseball players are now covered in the antitrust law, but minor league Baseball players, Major League Baseball's relationship with umpires in the minor leagues with the draft with television. Those are still all exempt from the antitrust john we gotta leave it there. Thanks so much for coming on the show and adding your insight. That's john Wall, a han professor of sports law at Syracuse University