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From the Windup: Is It Time for a Salary Cap?


From the Windup is FanHouse's extended look at a particular portion of America's pastime.


Salary Cap. There's not a more controversial phrase in baseball economics. The prospect of one hung over the strike of 1994 and 1995 before the owners and players managed to settle without implementing a true cap. Since then, baseball has instituted a luxury tax that acts as a sort of soft cap, but it's set high enough that it only really affects the Yankees annually, and they regard it in the same manner that a rhinoceros regards a mosquito.

For the most part, a salary cap hasn't been part of the conversation in baseball for several years. The Yankees ridiculous spending spree this winter, however, has changed things. In the days and weeks since their signings of CC Sabathia and Mark Teixeira, Brewers owner Mark Attanasio and Astros owner Drayton McLane have once again begun to call for a salary cap. They're the only two owners to have spoken directly on this issue, but it's hard to think they're alone.

A salary cap in baseball is not a simple thing. In most sports, there's only one line in labor negotiations: the line between the players and the owners. In baseball, there's actually a three-way divide between the players, the "big-market" owners (for lack of a better term), and the "small-market" owners. The MLBPA isn't the only thing that stands in the way of a cap. Some of the owners (think John Henry, the Steinbrenners, naturally, the Wilpons, Frank McCourt, Arte Moreno) would likely be opposed to one as well. After the jump, we'll look at all the obstacles and problems with implementing a cap.

The Pirates' New CEO Will Be ... Someone

Attention baseball people: Are you from Western PA? Have you ever worked with a mildly successful small market club? Or helped rebuild a big market club? Do you know Robert Nutting? Could you possibly be described as "blue collar" or "hard working" or any other cliche that is often applied to Pittsburgh?

If you answered "yes" to any of those questions, chances are quite good that you'll be hearing your name linked to the open Pittsburgh Pirates' CEO position any day now! I know, I know, it's a dream job. Anyways, John Perrotto of the Beaver County Times gives the first list of potential replacements for Kevin McClatchy today. The current thinking is that even though Bob Nutting owns most of the team, he knows squat about baseball and will look for a baseball person to replace McClatchy while running the business side of things himself.

The thing about this list is that Perrotto didn't actually talk to Nutting about who he was considering hiring, he talked to other people about who they think Nutting might think about. The most prominent names on the list are Larry Lucchino (like he would leave Boston for Pittsburgh), Jim Duquette, and Dan Duquette (pictured). Most of the people are employed by other teams, meaning the Pirates would need to get permission just to talk to them. Personally, I just hope it's not a Duquette, for everyone's sake (except Orioles' fans that would likely pay Nutting to hire Jim away).

Are More Changes Coming in Pittsburgh?

Last week Kevin McClatchy stepped down as the Pittsburgh Pirates' CEO, effective at the end of the 2007 season. It's clear some changes are being made in the organization with the slow phasing out of McClatchy, so the question remains, are more changes in the works? Tracy Ringolsby thinks so:

That leaves GM Dave Littlefield as the next target for blame, once McClatchy's successor is in place ...

[...]

It's an organization where ownership has opened the purse strings a little bit, but has largely wasted the money (and playing time) on the likes of Chris Stynes and Raul Mondesi in 2004, Jeromy Burnitz, Joe Randa and Roberto Hernandez in 2006, and Tony Armas this year. Yes, the same Tony Armas who despite his $3.5 million guarantee is about to be released.

It's true that both Dave Littlefield and Jim Tracy's contracts expire after the 2008 season, meaning that without extensions they'd be lame ducks. When asked about their fate after the McClatchy announcement next week, owner Bob Nutting refused to comment, saying it was a decision to be made after the season. It will probably be left up to whoever replaces McClatchy as CEO, and it will be a good test of what kind of executive the new CEO will be. Ridding the team of Littlefield would be starting off in a new direction. Extending him would just be an affirmation of the status quo.

Hat-tip to Honest Wagner.

Previously at FanHouse
Kevin McClatchy Out as Pirates' CEO
The Debriefing: The Biggest Threat to Baseball's Integrity

Kevin McClatchy Out as Pirates' CEO

Did the Pirate protest actually work? Lots of people were skeptical after the protest itself, but Pirates' CEO Kevin McClatchy announced today that he is stepping down from his office at the end of the 2007 baseball. From the Pittsburgh Post-Gazette:

"A decision of this personal and professional magnitude is not the type you make overnight," McClatchy said. "It was something Bob and I had discussed even before the change of control took place in January and something I decided upon a few months ago. It was a difficult decision but, in the end, I felt the time was right to step down as the day-to-day leader, so the organization can move forward with a fresh perspective."

If you follow the Pirates closely, you already knew that McClatchy was out as official owner in the eyes of MLB over the winter in favor of Bob Nutting. The question that lots of people have been asking since then is how much control McClatchy has really had over the team in recent years. The Nutting family have been the majority owners since shortly after the turn of the century, McClatchy has mostly just been a public front for them. Will McClatchy stepping down change the way the team is run? I'd be surprised, but honestly I suppose time and whoever the replacement is will tell.

That picture is from 1997, back when McClatchy was the savior of Pirate baseball for keeping the team in Pittsburgh. My how times have changed.

Pirate Fan Protest Update

Two updates this morning on the Pittsburgh Pirate protest that's scheduled to take place tonight at PNC Park after the third inning of the Pirates/Nationals game. The first is that the Pirates have finally acknowledged something is happening. You won't find owner Bob Nutting's response anywhere on the team website, but it's in the local papers and on the local TV stations. From the Pittsburgh Post-Gazette:

"I appreciate the passion of all of our fans and their frustrations with the team's performance," Nutting said in the statement. "Frankly, we all share in this frustration. Everyone throughout the organization understands the expectation and need to perform.

"I have not lost faith in the team or our core group of young players. There is still a lot of baseball to be played. Our focus as an organization remains on winning games.

"Finally, it is important to point out the immense appreciation I have for the continued loyalty and support from all of our fans."

Of course, this is they type of thing that Nutting and his predecessor, Kevin McClatchy, say all the time without ever doing anything to back it up. Meanwhile the Pittsburgh Tribune Review notes that the organizers of the protest have booked Dock Ellis to speak at the pre-game rally. That's right, Dock Ellis. The no-hitter on acid guy. And if you didn't have a reason to go before, well, now you've got a reason to go.

Previously at the Fanhouse
Pirates' Fans Are Protesting and the Pirates Are Pretending Like It's Not Happening
Pittsburgh Pirate Fans Are Protesting

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