minor league baseball player salaries vs expense | 2010 sports economics project

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Robert M. Pimpsner

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Robert M. Pimpsner

2006-2011First Contract Season:

$1,100/monthSecond Contract Season:

Open to negotiation

2005 SeasonFirst Contract Season:

Maximum $850/monthShort Season:

$850/monthFull Season A:

$1,050/monthDouble-A:

$1,500/monthTriple-A:

$2,150/month

1997 - Dan PeltierTriple-A:

$1,850/monthDouble-A:

$1,350/monthRookie:

$850/month

Minimum SalaryThe minimum rate of payment to a Player for each day of service on a Major League Club shall be as follows:2007—at the rate per season of $380,000;2008—at the rate per season of $390,000;2009—at the rate per season of $400,000;2010—at the rate per season of $400,000;2011—at the 2010 rate per season plus a cost of living adjustment, rounded to the nearest $500, provided that the cost of living adjustment shall not reduce the minimum salary below $400,000.

League minimum salary; For Minor League service—at a rate not less than the following:2007—at the rate per season of $60,000;2008—at the rate per season of $62,500;2009—at the rate per season of $65,000;2010—at the rate per season of $65,000;2011—at the 2010 rate per season plus a cost of living adjustment, rounded to the nearest $100, provided that the cost of living adjustment shall not reduce the minimum salary below $65,000.

For all Players signing a first Major League contract who are not covered by paragraph (2) above, the minimum salary for MinorLeague service shall be as follows:2007—at the rate per season of $30,000;2008—at the rate per season of $31,250;2009—at the rate per season of $32,500;2010—at the rate per season of $32,500;2011—at the 2010 rate per season plus a cost of living adjustment, rounded to the nearest $100, provided that the cost of living adjustment shall not reduce the minimum salary below $32,500.

Average Signing Bonus for Draftee in First 20 Rounds:$100,000

Players Drafted or Eligible for the Rule-IV Draft:Team that drafts the player holds negotiating rights until August 15 of the year drafted

If the player does not sign he returns to the draft pool for the next draft

Foreign Born Players:All amateur foreign born players are considered free agents

Are eligible to negotiate with any team they wishUsually paid less than US counterparts because of lower standard of living

Clubhouse Fees:New York Yankees Organization:

Rookie/Short Season: $20 every 2 weeksFull Season A:

Double A:Triple-A: $14 every day

Housing:Full-A to Triple-A:

Players are responsible for their own housingRookie-A or Short Season:

Players usually stay with host families or stay in hotels

Other Expenses:Food

Car BillCell Phone Bill

Entertainment Bill

Average Signing Bonus:$100,000

Agent/Advisor Fee:4%

$100,000 * 0.04 = $4,000$100,000 - $4,000 = $96,000

Taxes:$100,000 * 0.40 = $40,000

$100,000 - $40,000 = $60,000$60,000 - $4,000 = $56,000

Net Signing Bonus:$56,000

Average Monthly Salary:$900/month

Taxes:$900 * 0.24 = $216$900 - $216 = $684

Net Monthly Salary:$684

Expenses:Clubhouse Fees: $40/month

$20 every two weeksHotel Fees: $750

$25/day * 30 days

$684-$40-$750= -$106

Average Signing Bonus:$100,000

Agent/Advisor Fee:4%

$100,000 * 0.04 = $4,000$100,000 - $4,000 = $96,000

Taxes:$100,000 * 0.40 = $40,000

$100,000 - $40,000 = $60,000$60,000 - $4,000 = $56,000

Net Signing Bonus:$56,000

Average Monthly Salary:$900/month

Taxes:$900 * 0.24 = $216$900 - $216 = $684

Net Monthly Salary:$684

Expenses:Clubhouse Fees: $40/month

$20 every two weeksHotel Fees: $750

$25/day * 30 days

$684-$40-$750= -$106