Players union raises concerns with Pirates' use of revenue-sharing funds

Turns out Pirates fans aren’t the only ones wondering what the baseball franchise is doing with the tens of millions of dollars it gets from the league’s revenue-sharing process.

The players union is concerned about the team’s use of those funds, which are intended to be reinvested in baseball operations, according to a spokesman. Teams are supposed to provide an annual accounting of those expenditures to the union.

"We have raised our concerns regarding both Miami and Pittsburgh with the commissioner, as is the protocol under the collective bargaining agreement and its revenue-sharing provisions," said Greg Bouris, spokesman for the Major League Baseball Players Association, in a statement to Channel 11. "We are waiting to have further dialogue and that will dictate our next steps."

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How revenue-sharing works: Every team contributes an identical percentage of its net revenue to a fund, and that money is then distributed evenly among the teams in the 15 smallest markets.

“Baseball operations” is a broadly defined area that includes more than player salaries. It can also cover scouting costs, international signing bonuses, front office budgets and other functions of the franchise.

In a statement, Pirates team president rebuked anyone who thinks the Pirates aren't trying to win:

"The Pirates are not being investigated by MLB and the commissioner has no concerns whatsoever with the manner in which the Pirates are investing its revenue sharing receipts into building a winner. The Pirates have and will continue to invest its revenue sharing receipts in an effort to put a winning team on the field. As required by the basic agreement, we share with MLB and the union each year the detail as to how our revenue sharing receipts are used to put a winning team on the field. What that detail shows is that while our revenue sharing receipts have decreased for seven consecutive seasons, our major league payroll more than doubled over that same time period. Indeed, our revenue sharing receipts are now just a fraction of what we spend on major league payroll, let alone all of the other dollars that we spend on scouting, player development and other baseball investments, several areas in which we are among the league leaders in spending. Thus, the commissioner is well equipped to address whatever “concerns” the union how purportedly has over the Pirates’ efforts to win."

In its own statement, the league said the unions' worries are unfounded:

“We do not have concerns about the Pirates’ and Marlins’ compliance with the basic agreement provisions regarding the use of revenue sharing proceeds. The Pirates have steadily increased their payroll over the years while at the same time decreasing their revenue sharing. The Marlins’ ownership purchased a team that incurred substantial financial losses the prior two seasons, and even with revenue sharing and significant expense reduction, the team is projected to lose money in 2018. The union has not informed us that it intends to file a grievance against either team.”

The Pirates recently traded away stars Andrew McCutchen and Gerrit Cole, saving more than $20 million in salary, while citing the economics of small-market baseball as a primary reason for the moves.

As of right now, the team’s Opening Day payroll will be about $80 million, its lowest point in four years. That would have been fifth-lowest in the league last season.

Cox Media Group