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Owners disappoint Pirates' McClatchy
Baseball salary binge irks him
Saturday, January 29, 2005

There was a time, Kevin McClatchy will admit, when he thought it best to keep quiet while Major League Baseball owners increased players' salaries exponentially year after year.

That time, apparently, is over.

Speaking in emphatic terms at the Pirates' annual media luncheon, McClatchy, the team's managing general partner, said he was "very disappointed in the other owners" for their spending surge this offseason and for the damaging effect he predicted it will have on his and other low-revenue franchises.

"I don't know what happened, if they drank some funny water, but they all decided they were back on the binge," he said. "And, you know, the tough thing about it, it just hurts the industry."

He expressed surprise at many of the contracts, adding, "Some of the signings -- and I'm not going to name names -- are ridiculous. ... At best."

MLB's current labor agreement was ratified before the 2002 season, and it initially resulted in a cooling of player salaries. From 2003 to 2004, the average salary dropped 2.5 percent, from $2.37 million to $2.31 million. It was the first decrease since 1995 and the third since records first were kept in 1967.

The freeze ended this winter with a flurry of dollars aimed at free agents.

The highest-priced contracts still were given out by the wealthiest teams, but those are not the ones that have raised the most eyebrows within the game. Rather, it is those handed out by teams that usually are low spenders.

Among the highlights:

The Florida Marlins, trying to draw public support for a new stadium, signed first baseman Carlos Delgado for four years and $52 million. Their payroll will top $60 million for the first time. Delgado is coming off his worst season in seven years. Baltimore Orioles owner Peter Angelos called the Delgado signing an indication that "fiscal insanity" was back in baseball.

The Cincinnati Reds, operating in a market similar to Pittsburgh's, signed left-hander Eric Milton for three years and $25.5 million after he gave up 43 home runs last season, one every 4.7 innings.

The Arizona Diamondbacks, documented to be $200 million in debt, signed pitcher Russ Ortiz to four years at $33 million after he won two of his final 10 starts last season, then signed third baseman Troy Glaus to four years at $45 million months after he had shoulder surgery.

"When somebody goes out and pays an average pitcher $7 million a year, then anybody who's an average pitcher says they need $7 million a year," McClatchy said. "That makes it very difficult."

Of teams spending while in debt, he said, "What you don't want to see is some of these guys spend themselves into bankruptcy. That becomes a liability on all of us. I'm not sure some of these people are writing checks with money they necessarily have."

The New York Yankees' payroll will top $200 million and represent a record in professional sports. The Pirates' payroll is expected to be at $40 million, among the lowest in the game. They have yet to sign a free agent to a major-league contract this offseason, choosing to wait until players' prices go down.

The Pirates have benefited from the labor agreement, as increased income from revenue sharing and a luxury tax brings in more than $15 million annually. But McClatchy said that income, while welcome, cannot keep pace with the increase in player salaries.

McClatchy supported MLB's current labor agreement, but he made clear that he plans to take a more aggressive stance when it expires after the 2006 season. He serves on MLB's executive council and long-range labor committee.

"I think, as we go toward a new agreement, there's going to have to be some form of constraint because these guys can't control themselves," he said. "I know it sounds a little harsh, and I'm criticizing my other owners, but that's the way it is. I'm tired of other people affecting the marketplace and making it more challenging for small-market teams."

He paused and added, "I'm not sure if they knew it, but they may have created a hawk."

McClatchy reiterated his support of the National Hockey League owners who currently are locking out their players in an attempt to implement a salary cap similar to those used in the National Football League and National Basketball Association.

In the past, MLB has had difficulty forming unity in its ownership ranks on labor issues. But McClatchy said he sensed that is changing and that more owners are in favor of controlling salaries.

"I've been talking to a lot of owners, and a lot of us are concerned," he said. "And we're going to speak up."

Officials at MLB headquarters in New York did not respond to a request for comment on McClatchy's remarks.

First published on January 29, 2005 at 12:00 am
Dejan Kovacevic can be reached at dkovacevic@post-gazette.com or 412-263-1938.