Baseball collusion
Encyclopedia
Baseball collusion refers to owners working together to avoid competitive bidding for player services or players jointly negotiating with team owners.
Collusion
in baseball is formally defined in the Major League Baseball
Collective Bargaining Agreement, which states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs." Major League Baseball went through a period of owner collusion during the off-seasons of 1985
, 1986
, and 1987
.
Historically, owner collusion was often referred to as a "gentleman’s agreement". After the 1918
season, owners released all their players – terminating the non-guaranteed contracts, with a "gentleman’s agreement" not to sign each other's players, as a means of forcing down player salaries.
, Sandy Koufax
and Don Drysdale
decided to hold joint negotiations with the Los Angeles Dodgers
. Koufax and Drysdale were the team's star pitchers who had helped the Dodgers win the 1965 World Series
. The Dodgers needed them if they were to have any chance of returning to the World Series in 1966
. After negotiation for the first 32 days of spring training, they agreed on one-year contracts, Koufax for $
125,000 and Drysdale for $110,000, the two largest contracts in baseball history. The owners were fearful that other star players would follow their example.
, new union leader Marvin Miller
negotiated baseball's first Collective Bargaining Agreement (CBA) with team owners. The owners wanted to prohibit players from holding joint negotiations. Miller was willing to agree if it also applied to the owners. The CBA states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs."
, Peter Ueberroth
addressed the owners at a meeting in St. Louis. Ueberroth called the owners "damned dumb" for being willing to lose millions of dollars in order to win a World Series. Later, at a separate meeting with the general managers in Tarpon Springs, Florida
, Ueberroth said that it was "not smart" to sign long-term contracts. The message was obvious—hold down salaries by any means necessary. It later emerged that the owners agreed to keep contracts down to three years for position players and two for pitchers.
season was different from any since the Seitz decision
a decade earlier. Only four of the 35 free agents changed teams and those four were not wanted by their old team. Star players, such as Kirk Gibson
, Tommy John
and Phil Niekro
, did not receive offers from other teams. The cover of the December 9, 1985 edition of Sporting News asked, "Why Won't Anyone Sign Kirk Gibson?" George Steinbrenner
offered Carlton Fisk
a contract, then withdrew the offer after getting a call from Chicago White Sox
chairman Jerry Reinsdorf
. Teams also reduced team rosters from 25 to 24 players.
By December, several agents complained to Major League Baseball Players Association
president Donald Fehr
. In February 1986, the MLBPA filed its first grievance (Collusion I).
season was not much better for the players. Only four free agents switched teams. Andre Dawson
took a pay cut and a one year contract to sign with the Chicago Cubs
. Three fourths of the free agents signed one year contracts. Star players that ended up back with their old team included Jack Morris
, Tim Raines
, Ron Guidry
, Rich Gedman
, Bob Boone
, and Doyle Alexander
.
For the first time since the start of free agency, the average major league salary declined. The average free-agent salary dropped by 16 percent, while MLB reported revenues increasing by 15 percent. This prompted the MLBPA to file a second grievance (Collusion II) on February 18, 1987. Even as this was happening, Ueberroth ordered the owners to tell him personally if they planned to offer contracts longer than three years.
In the Collusion I case, arbitrator Thomas Roberts ruled that the owners had violated the basic agreement (September 1987
).
, Jack Clark
, and Dennis Martinez
. In January 1988
the MLBPA filed its third grievance (Collusion III).
On January 18, 1988, damages were announced in the Collusion I case. Roberts determined damages of $10.5 million should be paid by the owners to the players. Seven of the fourteen 1985 free agents were awarded a second chance as "new look" free agents. They could offer their services to any team without losing their existing contracts. On January 29, 1988, Kirk Gibson signed a $4.5 million, three year contract with the Los Angeles Dodgers
.
In October 1989
, arbitrator George Nicolau ruled that the owners had violated the basic agreement in Collusion II. Nicolau determined damages of $38 million. "New look" free agents included Ron Guidry
, Bob Boone
, Doyle Alexander
, Willie Randolph
, Brian Downing
and Rich Gedman
.
Collusion III damages were $64.5 million. Owners would also have to compensate for losses related to multi-year contracts and lost bonuses.
A final settlement of the three collusion cases was reached in November 1990
. The owners agreed to pay the players $280 million, with the MLBPA deciding how to distribute the money to the damaged players.
At that time, then-commissioner Fay Vincent
told the owners:
Miller largely agreed with Vincent's sentiments, saying Uebberoth and the owners' behavior was "tantamount to fixing, not just games, but entire pennant races, including all post-season series."
Later, Vincent would blame baseball's labor problems of the early 1990s, including the 1994-95 strike, on player anger at what he called the owners' theft from the players.
, Colorado Rockies
, Arizona Diamondbacks
and Tampa Bay Rays
) in part to pay the damages from the collusion settlement.
and 2003
seasons. As part of the 2006
CBA, owners agreed to pay the players $12 million from "luxury tax" revenue sharing funds. The agreement was made with no admission of guilt.
's new free agent contract down.
from receiving a 2008 contract.
Collusion
Collusion
Collusion is an agreement between two or more persons, sometimes illegal and therefore secretive, to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage...
in baseball is formally defined in the Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
Collective Bargaining Agreement, which states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs." Major League Baseball went through a period of owner collusion during the off-seasons of 1985
1985 in baseball
-Major League Baseball:*World Series: Kansas City Royals over St. Louis Cardinals ; Bret Saberhagen, MVP*American League Championship Series MVP: George Brett*National League Championship Series MVP: Ozzie Smith...
, 1986
1986 in baseball
-Major League Baseball:*World Series: New York Mets over Boston Red Sox ; Ray Knight, MVP*American League Championship Series MVP: Marty Barrett*National League Championship Series MVP: Mike Scott...
, and 1987
1987 in baseball
-Major League Baseball:*World Series: Minnesota Twins over St. Louis Cardinals ; Frank Viola, MVP**American League Championship Series: Gary Gaetti, MVP**National League Championship Series: Jeff Leonard, MVP...
.
Historically, owner collusion was often referred to as a "gentleman’s agreement". After the 1918
1918 in baseball
-MLB statistical leaders:-American League final standings:-National League final standings:-Events:*April 15 - The American League season opened with Boston Red Sox ace Babe Ruth pitching a four-hit, 7–1 victory over the Philadelphia Athletics...
season, owners released all their players – terminating the non-guaranteed contracts, with a "gentleman’s agreement" not to sign each other's players, as a means of forcing down player salaries.
1966–1968
Before the 1966 season1966 in baseball
-Major League Baseball:*World Series: Baltimore Orioles over Los Angeles Dodgers ; Frank Robinson, MVP*All-Star Game, July 12 at Busch Stadium: National League, 2–1 ; Brooks Robinson, MVP-Other champions:*College World Series: Ohio State...
, Sandy Koufax
Sandy Koufax
Sanford "Sandy" Koufax is a former left-handed baseball pitcher who played his entire 12-year Major League Baseball career for the Brooklyn/Los Angeles Dodgers...
and Don Drysdale
Don Drysdale
Donald Scott "Don" Drysdale was a Major League Baseball player and Hall of Fame right-handed pitcher with the Los Angeles Dodgers. He was one of the dominant starting pitchers of the 1960s, and became a radio and television broadcaster following his playing career...
decided to hold joint negotiations with the Los Angeles Dodgers
Los Angeles Dodgers
The Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. The Dodgers are members of Major League Baseball's National League West Division. Established in 1883, the team originated in Brooklyn, New York, where it was known by a number of nicknames before becoming...
. Koufax and Drysdale were the team's star pitchers who had helped the Dodgers win the 1965 World Series
1965 World Series
The 1965 World Series featured the National League champion Los Angeles Dodgers against the American League champion Minnesota Twins, who had won their first pennant since 1933 when the team was known as the Washington Senators...
. The Dodgers needed them if they were to have any chance of returning to the World Series in 1966
1966 in baseball
-Major League Baseball:*World Series: Baltimore Orioles over Los Angeles Dodgers ; Frank Robinson, MVP*All-Star Game, July 12 at Busch Stadium: National League, 2–1 ; Brooks Robinson, MVP-Other champions:*College World Series: Ohio State...
. After negotiation for the first 32 days of spring training, they agreed on one-year contracts, Koufax for $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
125,000 and Drysdale for $110,000, the two largest contracts in baseball history. The owners were fearful that other star players would follow their example.
Collective Bargaining Agreement
In 19681968 in baseball
-The Year of the Pitcher:In Major League Baseball, the trend throughout the 1960s was of increased pitching dominance, caused by enforcing a larger strike zone beginning in 1963...
, new union leader Marvin Miller
Marvin Miller
Marvin Julian Miller is a former executive director of the Major League Baseball Players Association , from 1966 to 1982. Under Miller's direction, the players' union was transformed into one of the strongest unions in the United States...
negotiated baseball's first Collective Bargaining Agreement (CBA) with team owners. The owners wanted to prohibit players from holding joint negotiations. Miller was willing to agree if it also applied to the owners. The CBA states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs."
1985–1987
Soon after being elected commissioner of baseballCommissioner of Baseball
The Commissioner of Baseball is the chief executive of Major League Baseball and its associated minor leagues. Under the direction of the Commissioner, the Office of the Commissioner of Baseball hires and maintains the sport's umpiring crews, and negotiates marketing, labor, and television contracts...
, Peter Ueberroth
Peter Ueberroth
Peter Victor Ueberroth is an American executive. He served as the sixth Commissioner of Major League Baseball from 1984 to 1989. He was recently the chairman of the United States Olympic Committee; he was replaced by Larry Probst in October 2008....
addressed the owners at a meeting in St. Louis. Ueberroth called the owners "damned dumb" for being willing to lose millions of dollars in order to win a World Series. Later, at a separate meeting with the general managers in Tarpon Springs, Florida
Tarpon Springs, Florida
Tarpon Springs is a city in Pinellas County, Florida, United States. The population was 21,003 at the 2000 census. According to the U.S. Census Bureau's 2004 estimates, the city had a population of 22,554....
, Ueberroth said that it was "not smart" to sign long-term contracts. The message was obvious—hold down salaries by any means necessary. It later emerged that the owners agreed to keep contracts down to three years for position players and two for pitchers.
Collusion I
The free agent market following the 19851985 in baseball
-Major League Baseball:*World Series: Kansas City Royals over St. Louis Cardinals ; Bret Saberhagen, MVP*American League Championship Series MVP: George Brett*National League Championship Series MVP: Ozzie Smith...
season was different from any since the Seitz decision
Seitz decision
The Seitz decision was a ruling by arbitrator Peter Seitz on December 23, 1975 which declared that Major League Baseball players became free agents upon playing one year for their team without a contract, effectively nullifying baseball's reserve clause...
a decade earlier. Only four of the 35 free agents changed teams and those four were not wanted by their old team. Star players, such as Kirk Gibson
Kirk Gibson
Kirk Harold Gibson is a former Major League Baseball player and currently the manager of the Arizona Diamondbacks. As a player, Gibson was an outfielder who batted and threw left-handed...
, Tommy John
Tommy John
Thomas Edward John Jr. is a former left-handed pitcher in Major League Baseball whose 288 career victories rank as the seventh highest total among left-handers in major league history...
and Phil Niekro
Phil Niekro
Philip Henry Niekro , nicknamed "Knucksie" because of his usage and skill level with the knuckleball, is a former Major League Baseball pitcher. He was inducted into the Baseball Hall of Fame in 1997....
, did not receive offers from other teams. The cover of the December 9, 1985 edition of Sporting News asked, "Why Won't Anyone Sign Kirk Gibson?" George Steinbrenner
George Steinbrenner
George Michael Steinbrenner III was an American businessman who was the principal owner and managing partner of Major League Baseball's New York Yankees. During Steinbrenner's 37-year ownership from 1973 to his death in July 2010, the longest in club history, the Yankees earned seven World Series...
offered Carlton Fisk
Carlton Fisk
Carlton Ernest Fisk , nicknamed "Pudge" or "The Commander", is a former Major League Baseball catcher. During a 24-year baseball career, he played for both the Boston Red Sox and Chicago White Sox .Fisk was known by the nickname "Pudge" due to his 6'2", 220 lb frame...
a contract, then withdrew the offer after getting a call from Chicago White Sox
Chicago White Sox
The Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
chairman Jerry Reinsdorf
Jerry Reinsdorf
Jerry M. Reinsdorf is a CPA, lawyer and an owner of the MLB's Chicago White Sox and the NBA's Chicago Bulls. He started his professional life as a tax attorney with the Internal Revenue Service. He has been the head of the White Sox and Bulls for over 20 years.He made his initial fortune in real...
. Teams also reduced team rosters from 25 to 24 players.
By December, several agents complained to Major League Baseball Players Association
Major League Baseball Players Association
The Major League Baseball Players Association is the union of professional major-league baseball players.-History of MLBPA:The MLBPA was not the first attempt to unionize baseball players...
president Donald Fehr
Donald Fehr
Donald M. Fehr is the executive director of the National Hockey League Players Association. He previously served as the executive director of the Major League Baseball Players Association from 1986-2009....
. In February 1986, the MLBPA filed its first grievance (Collusion I).
Collusion II
The free agent market following the 19861986 in baseball
-Major League Baseball:*World Series: New York Mets over Boston Red Sox ; Ray Knight, MVP*American League Championship Series MVP: Marty Barrett*National League Championship Series MVP: Mike Scott...
season was not much better for the players. Only four free agents switched teams. Andre Dawson
Andre Dawson
Andre Nolan Dawson , nicknamed "The Hawk", is an American former center fielder and right fielder. During a 21-year baseball career, he played for four different teams, spending most of his career with the Montreal Expos and Chicago Cubs .An 8-time National League All-Star, he was named the...
took a pay cut and a one year contract to sign with the Chicago Cubs
Chicago Cubs
The Chicago Cubs are a professional baseball team located in Chicago, Illinois. They are members of the Central Division of Major League Baseball's National League. They are one of two Major League clubs based in Chicago . The Cubs are also one of the two remaining charter members of the National...
. Three fourths of the free agents signed one year contracts. Star players that ended up back with their old team included Jack Morris
Jack Morris
John Scott "Jack" Morris is a former Major League Baseball right-handed starting pitcher. He played in 18 big league seasons between 1977 and 1994, mainly for the Detroit Tigers, and won 254 games throughout his career...
, Tim Raines
Tim Raines
Timothy Raines , nicknamed "Rock", is a former American professional baseball player. He played as a left fielder in Major League Baseball for six teams from 1979 to 2002 and was best known for his 13 seasons with the Montreal Expos...
, Ron Guidry
Ron Guidry
Ronald Ames Guidry , nicknamed "Louisiana Lightning" and "Gator", is a former Major League Baseball left-handed pitcher. He played his entire 14-year baseball career for the New York Yankees...
, Rich Gedman
Rich Gedman
Richard Leo Gedman is a former Major League Baseball catcher and left-handed batter who played with the Boston Red Sox , Houston Astros and St...
, Bob Boone
Bob Boone
Robert Raymond Boone is a former catcher and manager in Major League Baseball who was a four-time All-Star. Born in San Diego, California, Bob Boone is the son of a major league player, the late third baseman Ray Boone, and the father of two major leaguers: former second baseman Bret Boone and...
, and Doyle Alexander
Doyle Alexander
Doyle Lafayette Alexander is a former pitcher in Major League Baseball who played for the Los Angeles Dodgers, Baltimore Orioles, New York Yankees, Texas Rangers, Atlanta Braves, San Francisco Giants, Toronto Blue Jays, and Detroit Tigers...
.
For the first time since the start of free agency, the average major league salary declined. The average free-agent salary dropped by 16 percent, while MLB reported revenues increasing by 15 percent. This prompted the MLBPA to file a second grievance (Collusion II) on February 18, 1987. Even as this was happening, Ueberroth ordered the owners to tell him personally if they planned to offer contracts longer than three years.
In the Collusion I case, arbitrator Thomas Roberts ruled that the owners had violated the basic agreement (September 1987
1987 in baseball
-Major League Baseball:*World Series: Minnesota Twins over St. Louis Cardinals ; Frank Viola, MVP**American League Championship Series: Gary Gaetti, MVP**National League Championship Series: Jeff Leonard, MVP...
).
Collusion III
After the ruling, the owners changed their tactic, but not their intent. They created an "information bank" to share information about what offers were being made to players. Players affected included Paul MolitorPaul Molitor
Paul Leo Molitor , nicknamed "Molly" and "The Ignitor", is an American former Major League Baseball designated hitter and infielder. During his 21-year baseball career, he played for the Milwaukee Brewers , Toronto Blue Jays , and Minnesota Twins...
, Jack Clark
Jack Clark (baseball)
Jack Anthony Clark , also known as "Jack the Ripper," is a former Major League Baseball player. From 1975 through 1992, Clark played for the San Francisco Giants , St. Louis Cardinals , New York Yankees , San Diego Padres and Boston Red Sox...
, and Dennis Martinez
Dennis Martínez
José Dennis Martínez Emilia , nicknamed "El Presidente" , is a former Major League Baseball pitcher...
. In January 1988
1988 in baseball
See also: 1988 Major League Baseball season-Major League Baseball:*World Series: Los Angeles Dodgers over Oakland Athletics ; Orel Hershiser, MVP*American League Championship Series MVP: Dennis Eckersley...
the MLBPA filed its third grievance (Collusion III).
On January 18, 1988, damages were announced in the Collusion I case. Roberts determined damages of $10.5 million should be paid by the owners to the players. Seven of the fourteen 1985 free agents were awarded a second chance as "new look" free agents. They could offer their services to any team without losing their existing contracts. On January 29, 1988, Kirk Gibson signed a $4.5 million, three year contract with the Los Angeles Dodgers
Los Angeles Dodgers
The Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. The Dodgers are members of Major League Baseball's National League West Division. Established in 1883, the team originated in Brooklyn, New York, where it was known by a number of nicknames before becoming...
.
In October 1989
1989 in baseball
-Major League Baseball:*World Series: Oakland Athletics over San Francisco Giants ; Dave Stewart, MVP*American League Championship Series MVP: Rickey Henderson*National League Championship Series MVP: Will Clark...
, arbitrator George Nicolau ruled that the owners had violated the basic agreement in Collusion II. Nicolau determined damages of $38 million. "New look" free agents included Ron Guidry
Ron Guidry
Ronald Ames Guidry , nicknamed "Louisiana Lightning" and "Gator", is a former Major League Baseball left-handed pitcher. He played his entire 14-year baseball career for the New York Yankees...
, Bob Boone
Bob Boone
Robert Raymond Boone is a former catcher and manager in Major League Baseball who was a four-time All-Star. Born in San Diego, California, Bob Boone is the son of a major league player, the late third baseman Ray Boone, and the father of two major leaguers: former second baseman Bret Boone and...
, Doyle Alexander
Doyle Alexander
Doyle Lafayette Alexander is a former pitcher in Major League Baseball who played for the Los Angeles Dodgers, Baltimore Orioles, New York Yankees, Texas Rangers, Atlanta Braves, San Francisco Giants, Toronto Blue Jays, and Detroit Tigers...
, Willie Randolph
Willie Randolph
Willie Larry Randolph is a former Major League Baseball second baseman and manager, most recently the third base coach for the Baltimore Orioles...
, Brian Downing
Brian Downing
Brian Jay Downing is a former professional baseball player who had a 20-year MLB career with the Chicago White Sox, California Angels and Texas Rangers.- Chicago Years :...
and Rich Gedman
Rich Gedman
Richard Leo Gedman is a former Major League Baseball catcher and left-handed batter who played with the Boston Red Sox , Houston Astros and St...
.
Collusion III damages were $64.5 million. Owners would also have to compensate for losses related to multi-year contracts and lost bonuses.
A final settlement of the three collusion cases was reached in November 1990
1990 in baseball
-Major League Baseball:*World Series: Cincinnati Reds over Oakland Athletics ; José Rijo, MVP*American League Championship Series MVP Dave Stewart*National League Championship Series co-MVPs: Rob Dibble and Randy Myers...
. The owners agreed to pay the players $280 million, with the MLBPA deciding how to distribute the money to the damaged players.
At that time, then-commissioner Fay Vincent
Fay Vincent
Francis Thomas "Fay" Vincent, Jr. is a former entertainment lawyer and sports executive who served as the eighth Commissioner of Major League Baseball from September 13, 1989 to September 7, 1992.-Early life and career:...
told the owners:
Miller largely agreed with Vincent's sentiments, saying Uebberoth and the owners' behavior was "tantamount to fixing, not just games, but entire pennant races, including all post-season series."
Later, Vincent would blame baseball's labor problems of the early 1990s, including the 1994-95 strike, on player anger at what he called the owners' theft from the players.
Collusion and expansion
In 2005, Vincent claimed that the owners used the majors' two rounds of expansion in the 1990s (which produced the Florida MarlinsFlorida Marlins
The Miami Marlins are a professional baseball team based in Miami, Florida, United States. Established in 1993 as an expansion franchise called the Florida Marlins, the Marlins are a member of the Eastern Division of Major League Baseball's National League. The Marlins played their home games at...
, Colorado Rockies
Colorado Rockies
The Colorado Rockies are a Major League Baseball team based in Denver, Colorado. Established in 1991, they started play in 1993 and are in the West Division of the National League. The team is named after the Rocky Mountains...
, Arizona Diamondbacks
Arizona Diamondbacks
The Arizona Diamondbacks are a professional baseball team based in Phoenix. They play in the West Division of Major League Baseball's National League. From 1998 to the present, they have played in Chase Field...
and Tampa Bay Rays
Tampa Bay Rays
The Tampa Bay Rays are a Major League Baseball team based in St. Petersburg, Florida. The Rays are a member of the Eastern Division of MLB's American League. Since their inception in , the club has played at Tropicana Field...
) in part to pay the damages from the collusion settlement.
Collusion: 2002–2003
Players alleged that owners engaged in collusion in the 20022002 in baseball
-Major League Baseball:*Regular Season Champions*World Series Champion - Anaheim Angels*Postseason - October 1 to October 27Click on any series score to link to that series' page....
and 2003
2003 in baseball
-Headline event of the year:*The Florida Marlins become World Series champions, holding off a dynastic New York Yankees team, 4 games to 2.-Major League Baseball:*Regular Season Champions*World Series Champion - Florida Marlins...
seasons. As part of the 2006
2006 in baseball
-Headline Event of the Year:*The 2006 World Baseball Classic final 4 teams are Japan, Cuba, Korea and the Dominican Republic, with the United States at 3–3 failing to qualify for the semi-finals. Under the leadership of manager Sadaharu Oh and veterans Ichiro Suzuki and Daisuke Matsuzaka, Japan ...
CBA, owners agreed to pay the players $12 million from "luxury tax" revenue sharing funds. The agreement was made with no admission of guilt.
Collusion concerns: 2007
In November 2007, the MLB Players' Union raised concerns that owners collusively shared information about free agents and possibly conspired to keep the final price of Alex RodriguezAlex Rodriguez
Alexander Emmanuel "Alex" Rodriguez is an American professional baseball third baseman with the New York Yankees of Major League Baseball. Known popularly by his nickname A-Rod, he previously played shortstop for the Seattle Mariners and the Texas Rangers.Rodriguez is considered one of the best...
's new free agent contract down.
Collusion allegations: 2008
In October 2008, the MLB Players' Association indicated that it would file a collusion grievance against the owners claiming that they conspired illegally to keep Barry BondsBarry Bonds
Barry Lamar Bonds is an American former Major League Baseball outfielder. Bonds played from 1986 to 2007, for the Pittsburgh Pirates and San Francisco Giants. He is the son of former major league All-Star Bobby Bonds...
from receiving a 2008 contract.