Teams Continue Shedding Costs—With More Likely Ahead
As the offseason begins, the ugly financial picture across Major League Baseball is starting to come into focus.
Teams are aggressively cutting costs following a shortened 60-game season where no fans were allowed in the stands due to the coronavirus pandemic. Commissioner Rob Manfred has said that gate-related income—including tickets, concessions, parking and other attendance-related expenditures—accounts for 40% of revenue and told the website Sportico during the World Series that MLB’s 30 teams sustained a combined $2.8 to $3 billion in operational losses this year.
While those numbers cannot be independently verified, teams’ collective cost-cutting measures have already reached the hundreds of millions of dollars—with more likely ahead.
First, the draft. Teams spent a combined $316,560,984 on signing bonuses in the 2019 draft. By cutting the draft to five rounds in 2020, teams spent $238,092,829 on signing bonuses, a savings of just under $78.5 million.
(Additionally, teams only paid up to $100,000 of each draftee’s signing bonus this year, with the rest deferred to payments in equal installments in 2021 and 2022. That means teams paid out a maximum of $15,433,500 in signing bonuses to drafted players this year—149 players received signing bonuses of $100,000 or more, while the remaining 11 players who got less than $100,000 received bonuses totaling $533,500.).
Second, international signings. MLB pushed the start of the international signing period back from July 2, 2020 to Jan. 15, 2021. International bonus pools totaled $165,230,100 for the current period, spending that clubs were able to push back entirely into 2021.
Third, player options. Clubs declined 41 team or mutual options while picking up only nine through Nov. 5, according to team announcements and media reports. The total value of the options declined was $361.65 million, minus $54.575 million in buyouts. (The total value of the options picked up was $50.75 million). While many of those options would have been declined under normal circumstances, a few stood out as particularly notable, including Cardinals second baseman Kolten Wong, Indians closer Brad Hand and Rays starter Charlie Morton.
And fourth, team employees. The Cubs and Athletics each laid off more than 100 employees in recent weeks, including scouts, minor league coaches and coordinators and/or other baseball operations personnel. Other teams announcing staff reductions due to the pandemic in the last six weeks include the Astros, Braves, Cardinals, Giants, Indians, Nationals, Orioles, Padres, Phillies and Red Sox, all of which followed a summer of widespread furloughs and layoffs throughout the sport.
More cost-cutting is likely ahead. The non-tender deadline is Dec. 2 and both front office officials and agents alike expect a sharp uptick in the number of players who aren’t tendered a contract. It remains to be seen how proactive teams will be in free agency, which began Nov. 1, but the widespread expectation is all but the very top free agents will be forced to take well-below market deals—if they receive any offers at all.
To get a sense of what teams have shed so far, below is a look at each team’s draft savings compared to 2019, as well as the value of the options they declined. Keep in mind, these numbers are just a starting point—there is no way to verify how much additional money each team shed through employee pay cuts, furloughs, layoffs or non-renewal of contracts. With the non-tender deadline still ahead and teams continually seeking to pare down expenses, these numbers are likely to grow.
All draft signing bonus information is from Baseball America’s draft database. All contract information is from Baseball-Reference.com. Signing bonuses for nondrafted free agents are not included due to the incomplete nature of bonus information available for them.
Note that some draft savings, particularly for the Astros, Braves, D-backs and Yankees, is a product of having fewer top picks this year. Four teams—the Cardinals, Marines, Rockies and Tigers—spent more in a five-round draft in 2020 than they did in a 40-round draft in 2019, largely because they had more, or higher, early-round picks.
Players with mutual options who had teams decline their half of the option are marked with an asterisk (*).
ANGELS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Angels | $9,751,300 | $6,454,200 | $3,297,100 |
Declined Options: None
ASTROS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Astros | $6,462,099 | $2,283,000 | $4,179,099 |
Exercised Options: LHP Brooks Raley, $2 million
Declined Options: None
ATHLETICS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Athletics | $6,696,900 | $5,447,400 | $1,249,500 |
Declined Options: None
BLUE JAYS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Blue Jays | $10,677,000 | $10,202,325 | $474,675 |
Exercised Options: RHP Rafael Dolis, $1.5 million
Declined Options: RHP Chase Anderson, $9.5 million ($500,000 buyout)
BRAVES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Braves | $14,338,000 | $3,991,800 | $10,346,200 |
Declined Options: RHP Darren O’Day, $3.5 million ($500,000 buyout)
BREWERS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Brewers | $6,908,200 | $5,417,900 | $1,490,300 |
Declined Options: *OF Ryan Braun, $15 million ($4 million buyout); INF Jedd Gyorko, $4.5 million ($1 million buyout); INF Eric Sogard, $4.5 million ($500,000 buyout); OF Ben Gamel, $2.55 million
Total: $26.55 million ($5.5 million in buyouts)
CARDINALS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Cardinals | $8,205,000 | $8,290,000 | $(85,000) |
Declined Options: 2B Kolten Wong, $12.5 million ($1 million buyout)
CUBS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Cubs | $6,987,900 | $5,966,800 | $1,021,100 |
Exercised Options: 1B Anthony Rizzo, $16.5 million
Declined Options: LHP Jon Lester, $25 million ($10 million buyout); 2B Daniel Descalso, $3.5 million ($1 million buyout)
Total: $28.5 million ($11 million in buyouts)
D-BACKS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| D-backs | $17,045,500 | $7,184,900 | $9,860,600 |
Exercised Options: RHP Merrill Kelly, $4.25 million
Declined Options: RHP Mike Leake $18 million ($5 million buyout); RHP Hector Rondon $4 million ($500,000 buyout); RHP Junior Guerra $3.5 million ($100,000 buyout)
Total: $25.5 million ($5.6 million in buyouts)
DODGERS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Dodgers | $10,536,800 | $6,224,000 | $4,312,800 |
Declined Options: RHP Jimmy Nelson $2 million ($500,000 buyout)
GIANTS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Giants | $10,384,500 | $9,457,500 | $927,000 |
Declined Options: None
INDIANS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Indians | $8,010,505 | $7,390,000 | $620,505 |
Exercised Options: C Roberto Perez, $5.5 million
Declined Options: 1B Carlos Santana, $17.5 million ($500,000); LHP Brad Hand, $10 million ($1 million); OF Domingo Santana, $5 million ($250,000)
Total: $32.5 million ($1.75 million in buyouts)
MARINERS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Mariners | $8,927,500 | $9,961,100 | $(1,033,600) |
Declined Options: 2B/OF Dee Strange-Gordon $14 million ($1 million); RHP Kendall Graveman $3.5 million
Total: $17.5 million ($1 million in buyouts)
Note: Graveman re-signed for $1.25 million with incentives.
MARLINS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Marlins | $14,832,700 | $12,047,000 | $2,785,700 |
Exercised Options: OF Starling Marte, $12.5 million
Declined Options: RHP Brandon Kintzler $4 million ($225,000 buyout)
METS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Mets | $9,497,000 | $7,499,000 | $1,998,000 |
Declined Options: C Wilson Ramos, $10 million ($1.5 million buyout); C Robinson Chirinos, $6 million ($1 million buyout); 3B/1B Todd Frazier, $5.75 million ($1.5 million buyout)
Total: $21.75 million ($4 million in buyouts)
NATIONALS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Nationals | $7,683,580 | $6,647,000 | $1,036,580 |
Declined Options: RHP Anibal Sanchez, $12 million ($2.5 million buyout); OF Adam Eaton, $10.5 million ($1.5 million buyout); INF Howie Kendrick, $6.5 million ($2.25 million buyout); 1B Eric Thames, $4 million ($1 million buyout)
Total: $33 million ($7.25 million in buyouts)
ORIOLES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Orioles | $15,168,600 | $13,672,300 | $1,496,300 |
Exercised Options: SS Jose Iglesias, $3.5 million
Declined Options: None
PADRES
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Padres | $13,010,900 | $11,108,004 | $1,902,896 |
Declined Options: 1B/DH Mitch Moreland, $3 million ($500,000 buyout)
PIRATES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Pirates | $12,111,400 | $11,067,400 | $1,044,000 |
Declined Options: RHP Chris Archer, $11 million ($250,000 buyout)
PHILLIES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Phillies | $8,779,800 | $5,700,000 | $3,079,800 |
Declined Options: RHP David Robertson, $12 million ($2 million buyout); RHP Hector Neris, $7 million; RHP David Phelps, $4.5 million ($250,000 buyout)
Total: $23.5 million ($2.25 million in buyouts)
RANGERS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Rangers | $12,858,300 | $7,275,000 | $5,583,300 |
Declined Options: RHP Corey Kluber, $18 million ($1 million)
RAYS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Rays | $11,685,800 | $7,474,200 | $4,211,600 |
Declined Options: RHP Charlie Morton, $15 million; C Mike Zunino, $4.5 million
Total: $19.5 million
REDS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Reds | $11,273,400 | $8,546,000 | $2,727,400 |
Declined Options: None
RED SOX
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Red Sox | $6,369,200 | $5,250,000 | $1,119,200 |
Declined Options: LHP Martin Perez, $6.85 million ($500,000 buyout)
ROCKIES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Rockies | $8,072,800 | $10,332,800 | $(2,260,000) |
Declined Options: 1B Daniel Murphy, $12 million ($6 million)
ROYALS
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Royals | $14,452,200 | $12,520,000 | $1,932,200 |
Declined Options: None
TIGERS
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Tigers | $11,908,800 | $13,978,600 | $(2,069,800) |
Declined Options: None
TWINS
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Twins | $10,892,800 | $4,330,000 | $6,562,800 |
Declined Options: RHP Sergio Romo, $5 million ($250,000 buyout)
WHITE SOX
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| White Sox | $13,633,200 | $7,757,000 | $5,876,200 |
Exercised Options: INF Leury Garcia, $3.5 million
Declined Options: DH Edwin Encarnacion, $12 million; LHP Gio Gonzalez, $7 million ($500,000)
Total: $19 million ($500,000 in buyouts)
YANKEES
Draft Bonuses
| Team | 2019 Draft Bonuses | 2020 Draft Bonuses | Savings |
| Yankees | $9,327,300 | $3,678,400 | $5,648,900 |
Exercised Options: LHP Zack Britton, $14 million
Declined Options: LHP J.A. Happ, $17 million; OF Brett Gardner, $10 million ($2.5 million buyout)
Total: $27 million ($2.5 million in buyouts)
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