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Thursday, August 22, 2002

Owners give ground on revenue sharing




The Associated Press

        NEW YORK - Baseball owners presented a new revenue-sharing deal to the union to try to spark talks, calling the offer a significant step toward what players want.

        The proposal, made Tuesday night and disclosed Wednesday, was much better received than management's luxury-tax plan of last week, which was so far from what players would accept that they set an Aug.30 strike date.

        Revenue sharing among teams and a luxury tax on high payrolls to slow salary increases are chief issues that could lead to baseball's ninth work stoppage since 1972.

        Rob Manfred, management's top labor lawyer, said the revenue-sharing plan was a “substantial move toward the union both in structure and in transfer amount.” He wouldn't disclose details of the proposal and said the next move is up to players.

        “I am frustrated a little bit,” Manfred said. “I'd like to get a more active dialogue going on the tax and the revenue sharing, but it takes two parties to have a dialogue.”

        Union lawyers said the proposal was a move in the right direction but wouldn't agree the shift was “substantial.”

        “We will respond to their proposal on revenue sharing in the very near future, more likely than not tomorrow,” Gene Orza, the union's No.2 official, said Wednesday.

        In memos to players and agents last week, union head Donald Fehr said players already had agreed to raise the money to be transferred from high-revenue teams to low-revenue teams from $169 million to $235 million annually, using 2001 figures. Before their latest offer Tuesday, owners had proposed $282 million be transferred.

        Meanwhile, a management lawyer sent a nine-page memo to chief financial officers, general managers and assistant general managers of teams to prepare them for a strike. It urged them to make plans to cut expenses.

        “All operations should be carefully reviewed with an eye toward reducing overhead costs during the strike,” said the memo, written by Frank Coonelly, a lawyer in the labor relations department of the commissioner's office.

        It appears talks will go right to the deadline. With the sides stuck on the luxury tax, management turned to revenue sharing in an effort to build momentum toward a deal.

        “We thought it was a productive step to try to move the other related piece in the hope the whole negotiation would move forward,” Manfred said.

        Players fear that a large increase in revenue sharing, when combined with a luxury tax, would take away too much money from baseball's high-payroll teams, who otherwise would spend it on salaries.

       



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