Baseball Players Wait Six Years for a Free-Market Payday
Early years mean little leverage and near-minimum salaries, then open bidding among 30 teams can lift pay into the millions.
Marketplace · When it comes to the job market, love the one you're withA baseball career has two pay scales, and the split comes after six years in the majors. Before that, a player cannot shop his talents. After that, he can.
For those first six seasons, a player is entirely under his team's control. He stays with the club that holds his rights, with none of the freedom to test the market that comes later.
Pay reflects that lack of leverage. Mike Trombley, a former major league pitcher who played for three clubs from 1992 to 2002, earned just above the league minimum in his early seasons pitching for Minnesota, about $240,000 in today's dollars.
The job also felt insecure. Trombley recalled thinking in 1994 and 1995 that every game could be his last, because the team could send him down, trade him, or release him. “I never had a guarantee of anything,” he said.
After six years, a player can reach free agency and sign with any team. Trombley reached that point after the 1999 season, and the Baltimore Orioles signed him to a three-year deal worth about $15 million in today's dollars.
He described signing it as relaxation, and as making more money for his family. David Barry, who teaches economics at Southern Utah University, says that open bidding is what drives salaries so high.
For a select few stars, competition among all 30 teams can push pay to $30 million or $40 million a year. The early years pay little, and the open market can pay far more.
Questions people ask
How exactly does a player earn free agency?
A player generally becomes a free agent after six full years of major league service, which is counted in days on a big league roster. Before that, the team can renew his contract, and later he may go through salary arbitration, but he still cannot choose his employer.
What is the major league minimum salary today?
The minimum is set in collective bargaining between owners and the players union, and it rises over time. It is now well above $700,000 per season, far more than Trombley earned in the 1990s, but still a fraction of what stars make.
Do athletes in other sports face the same system?
Young players in football, basketball, and hockey also face limits on movement and pay, usually through drafts, rookie contracts, and restricted free agency. The big difference is that every other major American team sport also has a salary cap, which limits what any team can spend in total.