Arbitration in Baseball: New York Mets Facing Hard Times
Does arbitration, baseball, and hard financial times really mix well? Perhaps not, according to Fred Wilpon, the owner of the New York Mets. His assessment of his team’s finances is dire; Wilpon estimates that the team will lose as much as $70 million during the current year. Even worse, the Mets face a liability of a billion dollars due to a lawsuit currently pending against the team.
Arbitration: Baseball Troubles
It may seem that arbitration is not to blame for these financial woes, but Wilpon might well disagree with that analysis. To cut costs, the Mets are expected to reduce the payroll next year by as much as 30 percent. That may prove difficult because of commitments already made to players that are eligible for salary arbitration. Those commitments already total almost $80 million and include players such as Mike Pelfrey and Angel Pagan. The Mets would like to have more flexibility in their salary arrangements so that the team can more readily adjust to changing economic times.
Wilpon is also actively seeking investors and has put an increased percentage of the team up for sale. As much as 49 percent can now be purchased. "The team has an enormous payroll that is not productive… so we've got to stabilize that,” Wilpon said, attempting to explain the jump in the percentage of the team up for sale.
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