As is the case with a number of other businesses, Major League Baseball currently is not in the best spot financially due to the coronavirus (COVID-19) pandemic.
The start of the 2020 season has been delayed, and as more time goes by, the reality of a potential full cancellation is beginning to set in.
At best, the season will be able to take place in a shortened capacity, but with no fans in the stadiums, which would significantly limit revenue. Regardless, it seems MLB and all of its organizations are committed to doing whatever they can to get some sort of season in.
In the meantime though, plenty needs to be sorted out financially as far as paying players and staff members during this difficult time. In order to do that, MLB commissioner Rob Manfred and other senior staff members have committed to taking a significant pay cut for the rest of 2020, via Jeff Passan of ESPN:
In a memo sent to Major League Baseball staff this morning, commissioner Rob Manfred committed to paying league employees through at least May 31 and said senior staff at the league, including himself, will reduce their pay by an average of 35% for 2020.
— Jeff Passan (@JeffPassan) April 14, 2020
This is a very generous move by Manfred and the rest of his staff and is likely necessary to ensure other low-level employees don’t have to do the same. NBA commissioner Adam Silver and his employees paved the way for the idea by recently taking pay cuts of their own.
Additionally, MLB is going to continue sending money to organizations so that they can pay their players:
Manfred said in the memo that MLB would continue making scheduled financial distributions to all 30 teams in April and May — money that "will assist the Clubs in paying the salary advances that are being made to players," which will total $170 million over the next two months.
— Jeff Passan (@JeffPassan) April 14, 2020
MLB and the MLB Players Association previously came to terms on an a lump sum salary advance for players while the wait for the season continues. Shortly after, the MLBPA established a Financial Assistance Program for players who are not on a 40-man roster but still in camp at the time Spring Training was cancelled.
The league and teams has additionally combined to provide financial relief for stadium employees.
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