The Economic effect on Joe the Plumber – and the MLB

posted by SportsNews 9:34 PM
Tuesday, April 7, 2009

baseball payroll cutsThe economy has taken its toll on everything from Joe the plumber to 14 of the 30 MLB teams. With so many bailout fiascoes it would not be far fetched to see another idiotic move, but it just won’t happen in the MLB’s case.

 

But what does this mean for baseball? Despite the payroll cuts, certain unexpected teams are still spending large amounts. The Cubs for example had the largest jump in payroll, increasing $16.5 million during the 2008 season. Merely emulating what many major corporations are doing in a collapsing economy it is no surprise that so many ball clubs and interest holders are budgeting.

 

Although pre-established contracts have had a part in the cubs largest payroll in team history it does not match the many other clubs that are subsidizing their losses. The only other close increased spending team, the Philadelphia Phillies, are adding merely $3 million onto their current salary spenditure.

 

10 of the 14 teams alone are cutting at least $10 million off the books. For example the San Diego Padres reducing salaries to $43.8 million.

 

This change however does not mean that everyone is feeling the effects quite as much. Despite so many tightening wallets, average salaries still increased 4 percent to 3.26 million. So while CBS headlines read ‘Buy Me Some Peanuts And Cracker Jack’ one may want to consider the continued increase of over 100 thousand in the average MLB players salary, buy hey – Business is business.

 

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