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MLB cancels more games, pushing Opening Day to April 14

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Major League Baseball said Wednesday it has cancelled more Major League Baseball games. Opening Day will now be April 14, while negotiations between the owners of the union and the players remain deadlocked.

Robert Manfred, MLB Commissioner, stated in a statement that “due to the logistical realities on the calendar”, two additional series were being eliminated from the schedule.

He said, “I am deeply saddened at the continued negative impact of this situation on our game and all who are involved in it, particularly our loyal fans.”

MLB Players Association’s own statement stated that MLB’s decision “completely unnecessary” to cancel more games and that the players “yet” to be heard about any proposals.

Since the owners cancelled the start of the regular season, it’s been over a week. MLB Players Association and league representatives met in New York this week to discuss a new collective bargaining arrangement. There are still issues to resolve, including MLB’s competitive balanced tax and minimum wages.

There are potential gameplay enhancements such as the addition of a pitcher’s timer. A 14-team playoff is also being considered as an option. Ten teams were in the playoffs last year.

Manfred called the previous two seasons of the 2022 season its best offer and cancelled them last week. The series lasted more than 90 minutes. Manfred called MLB’s original proposal his best and said that players would not be paid for any games they missed. 

Expansion of the Playoffs

Luxurious tax, gaming limits and support fund

MLB’s luxury taxes line remains a contentious issue between owners and players. 

The tax line in the 2017 CBA was $210million, an increase of $195 million from 2017. MLB proposed to raise the luxury tax from $195 million to $210 million by 2022. It would go up to $230 million in 2026. MLBPA is asking the league for a higher tax rate, which would allow teams to spend more on their players and avoid paying penalties.

MLBPA’s most recent proposal was supported by players who indicated that they would be open to adding a clock for pitchers and restricting defensive shifts that contribute to the lack of action during MLB games. Although the additions might be available as soon as the 2023 season, it’s not known what MLBPA would like in exchange for gameplay elements.

MLBPA pays stipends of $12,000 per player, although players won’t be paid. MLBPA established a fund of $1 million for workers in stadiums that were affected by the shutdown.

Tony Clark, MLB’s executive director, stated in a statement that “this fund is meant to support workers most affected by MLB-imposed locksout but whose livelihoods were disregarded in owners’ efforts to pressure players into agreeing to an unfair agreement.”

MLB provided $1 million in matching funds to workers.

Business impact and blame

MLB brass takes the brunt of the blame for the stoppage in labor. The study was released by research firm Morning ConsultAccording to the survey, 45% blame MLB owners and fans for not reaching a new agreement. This compares to 33% who blamed MLB owners for the conflict surrounding the shorter 2020 season. Twenty-one percent of players are to blame.

Some markets are already feeling the effects of the lockout. The Wall Street Journal estimates over $1 billionLosses for both the Arizona and Florida spring-training territories. Tempoorality, which is the main source of local revenue for MLB teams, has been halted by the lockout.

Tony Ponturo, an experienced sports marketing executive said that discussions with corporate sponsors have likely started. He also stated that MLB clubs will not get their money “until the games are over.” Ponturo suggested that clubs might offer additional inventory to their partners, rather than refunding money. He projects this is unlikely to happen during the first month.

“But as it starts to drag, and their image is downgraded because you get angry fans – if it becomes a disaster as it did in 1994-95” – companies could elect to walk away, said Ponturo, the former vice president of global sports and entertainment marketing at Anheuser-Busch.

Jon Diament, Turner Sports’ chief revenue officer, stated Tuesday that companies still need to purchase regular-season MLB advertising inventory. However they have not yet spent their MLB ad budgets for other programming.

It is not clear how long marketers will be waiting for baseball, particularly since Turner Sports has better inventory surrounding the National Basketball Association (NBA) and National Hockey League (NHL), while MLB continues to remain in labor disputes.

The Yankees’ president Randy Levine said that it was embarrassing for the team to be in this position.The Michael Kay Show” Monday, while we discuss the lockout.

Levine also dismissed the belief that owners aren’t concerned about April missing games, since it is considered low-revenue.

“We all are sick to lose any game,” he stated. Losing any game is the worst thing. Every game that we lose is a loss, and we all lose money. The players also lose their salaries for every game they lose. That’s horrible.”

Levine stated that he was “very afraid” fans might lose interest in MLB should the lockout continue.

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