Mlb Case Analysis

Baseball is an old and beloved American sport that has been enjoyed by millions. However, behind team sportsmanship and sport excitement is a very challenging business structure. Just like in any business, there are rules, regulations and agreements that are constantly shaped through negotiations. In baseball, these negotiations take place between team owners and players or the legal bodies representing them. Reflecting competitive nature of the sport, negotiations tend to get heated and controversial. Testament to that was seen throughout baseball’s history from the mid 1800’s up until the 2000’s.The 232-day strike in 1994-1995 in which players fought off an attempt by owners to break the union and implement pay and benefit cuts. The history behind these negotiations is rich and deserves a closer inspection.

One major negotiation occurring in professional baseball was the idea of free agency. The concept of being a free agent means a player without a current contract can freely sell his services to the highest bidder. The concept of “free agency” was first witnessed in 1974. Pitcher Catfish Hunter sought to become the league’s first free agent when a provision in his contract was not honored by the owner of his team. This case went to three-man arbitration panel. The decision of this panel was in favor of Hunter after 2 to 1 vote making him the first “free agent”.

Once the reserve clause was eradicated, MLBPA and PRC found themselves at the negotiation table again. The owners proposed that players can gain free agency eligibility after ten years of professional service, while the union insisted on a five-year requirement. After integrative negotiations failed, owners moved to a hardball tactic declaring a lockout during spring training. Eventually, the sides returned to integrative bargaining, and through compromise, agreed on a six-year professional services requirement and compensation in the form of a draft pick for the team losing the player.

Free...