Some Millionaires are Undeserving
June 9th 2009 21:14
On the day of the 2009 MLB Draft, news wires are buzzing with speculation about probable #1 pick Stephen Strasburg out of San Diego State. Pundits are predicting super stardom within two years after he signs an exorbitant contract upon his draft selection. Rumors are flying that he could earn up to $60 million from the Washington Nationals in his rookie contract.
Obviously, this is a staggering pile of money for a 23 year old kid. The question is, do talented athletes command this kind of paycheck before they have even stepped on a field or court? Do "can't miss" prospects deserve this kind of contract before proving anything?
This question has come up frequently at draft time in recent years for both the NFL and NBA, which are typically known for huge rookie contract allowances. In 2008, however, the NFL owners finally had enough, and successfully lobbied to get the contract limits lowered for high draft picks. The numbers these young players earn are still mindboggling, but the contract caps are a step in the right direction that should be mirrored by the NBA and MLB especially.
Major League Baseball is unique because it has no salary cap. This is why teams will pay $27.5/year for a single player like Alex Rodriguez and run their payrolls to over $200 million a year. NBA and NFL caps are $58.68 million and $128 million, respectively. Those are minuscule compared to MLB's figures.
It makes the most sense in baseball because there is no salary cap, but how is this logical or justifiable in economic terms? The U.S. is in a full blown recession that could become a depression. Given this economy, a pro baseball team is going to throw $60 million at a kid who pitches every 5th day, plus $20-30 million just to sign his name? "Best College Pitcher of All Time" or not, nobody deserves that kind of cheddar as an unproven prospect.
Maybe Strasburg will give some of his signing bonus to the poor or help stimulate the economy in some way...but I seriously doubt it.
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Comment by Tyler Roberts
St. Louis Cardinals
In my opinion, the NFL still has a big problem with rookie contracts, but not like the MLB does.
How flawed is the system if the worst teams that have the top picks often don't take the best players available because they know they can't afford to sign them? I'm not saying the MLB needs to go running to a salary cap system, but I would like to see some kind of structure in regards to rookie contracts and bonuses.
Not to mention the ungodly failure rate for MLB draftees, even in the 1st round. The idea of a "can't miss prospect" exists less in the MLB than the others sports, yet they are signing ridiculous contracts before they even enter rookie ball.
Comment by Jason Heim
West Coast Bias