MLBPA may look into team spending during CBA

The MLB Players Association leader Tony Clark met with the Chicago Cubs to discuss team spending during the CBA.

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The current MLB collective bargaining agreement ends after the 2016 season and information is being gathered for the upcoming negotiations. One possible sticking point relates to the Cubs, who have banking restrictions built into the debt structure after the purchase by the Ricketts family. Similar restrictions are built into other clubs as well, but the Cubs limited baseball spending is tied into what was a highly leveraged purchase by the Ricketts in 2009. It came with a debt structure spanning ten years and banking covenants that strictly tie baseball spending to revenues.

The subject was broached when MLBPA leader Tony Clark met with Cubs players for an annual update that takes place every spring. According to a story by the Chicago Sun Times, Clark said that any time that there are circumstances affecting the functional capacity of a team because of obligations or specific language, the MLBPA can step in. Clark said this obviously applied to more teams than just the Cubs.

Clark added that they were definitely interested in what is going on with the Cubs and they intend to be involved in the conversation. He refrained from commenting on the Cubs’ specific business practices or the bank restrictions influencing their spending.

The concern is that, while many franchise values hit $1 billion, the finance structures are growing ever more sophisticated and potentially allowing clubs to hide behind them while suppressing player markets. Clark said that clubs who don’t appear to be putting their best foot forward are the challenge. In other words, they’re not returning revenue to the program and trying to improve the dynamic. Or, at least, that’s how it appears on the surface in some cases.

The Sun-Times reveals that sources told them that the MLBPA was specifically taking a hard look at the major budget cuts the Cubs made, which exceeded what team president Theo Epstein’s staff expected when he was hired.

The Cubs have annual profits within the top five in the league, but don’t appear to be using resources in a way that would push along the seemingly endless rebuilding plan.

However, Clark reiterated that he wasn’t necessarily singling out the Cubs, but that the union just wanted to make sure clubs were making healthy decisions for their long-term success.

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