According to popular belief, baseball is America’s favorite sport, and many young people dream of playing on a major league field.
Pro baseball players are among the highest-paid athletes in the sports industry, but the chances of succeeding are distressingly slim, and the road is treacherous.
Have you ever wondered how frequently pro baseball players are paid, considering all the time, effort, and energy invested in playing a good game for the fans to enjoy?
Most MLB players are compensated once or twice each month via direct deposit, per the 2017–2021 Collective Bargaining Agreement. However, they are only paid during championship seasons and not during Spring Training or postseason contests.
In this article, we’ll investigate the MLB salaries, how often the payments are made, and at what terms.
How Often Do MLB Players Get Paid?
The majority of baseball players find that participating in Spring Training games helps them perform even better in games during significant Major League Baseball competitions. However, in tournament games, players are typically just compensated; training is not.
On average, a baseball player will only get paid once or twice a month through a direct deposit. This is in accordance with Appendix A of the model contract from the Major League Baseball Players Association’s 2017–2021 Collective Bargaining Agreement.
While the season is in progress, players will be paid bi-monthly according to the base payment schedule. Unless otherwise specified in their contracts, players typically are not paid during the postseason, offseason, and spring training.
Baseball players can discuss different payment plans with their team, though this is the standard arrangement. Few players, however, will choose various payment schedules because this is up to the club manager’s decision.
Please be aware that this arrangement only applies to major tournament seasons and may not be used for games during spring training, postseason, or baseball player practices.
Instead, baseball players will be given several allowances during Spring Training games. Benefits include base payments, extra payments if the player lives outside of the training center, and meal payments.
Players may also receive additional compensation outside of their usual contracts, known as add-ons. These rewards include sign-on bonuses, incentives for on-field performances, and other sponsorships or partnerships.
Compensation For Injuries
Even though they are on the injured list, every Major League Player continues to receive payment of their base salary.
Any MLB player who is hurt or ill cannot be removed from the 25-man roster by being demoted.
The athlete must be on the injured list and get his promised compensation until he is healthy once more or the season is over.
This regulation still holds true regardless of whether the athlete was hurt while playing or on the field.
They are entitled to get their promised wage as long as they were a roster player who was actively participating at the time of their injury.
Payments in the event of suspensions
One of the uncommon situations in MLB where a player is not compensated is a suspension.
In order to determine how long a suspension will last and how it will affect a player’s income, the cause for the suspension is crucial.
Failure to pass PED (Performance-Enhancing Drug) tests is the primary cause of suspensions, and these bans are the longest in MLB.
MLB’s Minimum Salary Offers
I want to address one of the most often asked inquiries regarding MLB, the minimum salary.
Don’t be dishonest; I know you were considering it and anticipating this one. Well, no judgment here – we’re all curious!
In 2022, a player’s minimum MLB salary is about $570.5 thousand (US dollars). Over the past fifteen years, this wage has increased yearly.
Do MLB Contracts Have Insurance?
MLB does not now require players to get insurance, in contrast to its leagues’ equivalents in the NHL and NBA.
However, various groups are free to go out and purchase insurance independently, which many do.
Technically and logically speaking, insurance is expected on a contract as large as MLB’s.
The largest problem is that insurance almost never allows exclusions for prior injuries. Insurance is now expensive and essentially useless due to these exceptions.
Baseball clubs, though, are on their own because MLB does not offer insurance.
These insurances occasionally have steep premiums: 7% for pitchers and 3% for a position player’s contract.
In addition, the player must miss a specific amount of days for any team to be eligible to collect insurance coverage.
Even so, the insurance seeker receives between 60 and 80 percent of their earnings.
Are MLB contracts Guaranteed?
When they join the league, every Major League Baseball player signs a guaranteed contract.
The rule applies to all players equally, whether they join through free agency or an extension.
Players released after March 17 and the final days of Spring Training are often compensated and paid for the 45 days.
The reason MLB is so well-liked by players and investment organizations is that, barring unusual situations, it almost always guarantees its contracts.
Any Major League Baseball player who signs a contract receives 100% of the promised money when they do so, excluding team options and performance bonuses.
Although that seems fantastic, there are some disadvantages to these contracts as well.
Let’s discuss these contracts, what a guaranteed contract entails, and whether it is good or bad for any athlete so that you may comprehend that better.
The MLB’s definition of a guaranteed contract
People who inquire as to whether MLB contracts are secure most likely are familiar with what a guaranteed contract is.
However, let me provide some clarification for people who don’t understand this theory very well.
A guaranteed contract ensures that the athlete or person who signed it will be paid the full amount under all the terms and conditions stated in the agreement.
MLB contracts are often 100 percent guaranteed, unlike all other universal sports.
It signifies that the signer will receive the whole amount specified in the contract, barring any unexpected circumstances.
Why Do MLB Contracts Come With Guarantees?
There is no conclusive explanation for why Major League Baseball contracts are guaranteed in the first place.
However, there are a number of reasons why businesses frequently choose it:
All Major League Baseball contracts are guaranteed due to three factors:
- the Association’s strength,
- the length of the season
- the absence of pay caps.
And while if each of these arguments isn’t really that strong on its own, taken as a whole, they create a case for a guaranteed contract that is convincing enough.
The length of the MLB season ensures that each player receives a sizable salary. Every team is required to play more than 80 more games annually.
Additionally, they play 146 more games than any other NFL club. As a result of playing more games, they have more money to gather.
Furthermore, only specific contract provisions are guaranteed in associations like the NBA and NFL.
Because there are no salary limitations, MLB contracts must be guaranteed.
MLB’s Non-Guaranteed Contracts
For the avoidance of doubt, a non-guaranteed contract is one that can be canceled before the player’s first game.
Non-guaranteed contracts also pay the specific player modest salaries under the circumstances specified in the contract.
As I previously stated, there are instances in which a contract’s guarantee of money is not applicable.
These agreements are referred to as non-guaranteed contracts, and examples of such situations include voluntarily retiring and suspending work.
Since they have the power to extend or terminate contracts early, option years and contract opt-outs also constitute a type of non-guaranteed money.
Additionally, payments are not guaranteed for players in Minor League, split contracts, or arbitration.
Are MLB Players’ Salaries Capped?
In MLB, there is no salary cap. However, there is a luxury tax system that increases the cost of a team having a high payroll.
There is a threshold ($189M in 2015); if a team’s payroll exceeds that level, a tax equal to 17.5% of the excess is paid to the league as a fine.
Therefore, in addition to the salary they paid out, a team that went $10 million over the cap would also have to pay $1.75 million to the league.
Two points:
1) Take note that the percentage grows to 30% for the second year, 40% for the third year, and 50% for successive seasons if a team exceeds the tax limit for consecutive seasons.
2) The league uses the proceeds from the luxury tax for a variety of initiatives, notably paying for player benefits and promoting baseball in nations with no established infrastructure.
It’s important to note that this is not the league’s revenue-sharing program. The luxury tax money is not used for the MLB program that distributes money from merchandise and media deals to the low-revenue teams.
