Contract performance bonuses - what should they be based on?

[BiZmaRK]

Given the recent surge in numbers because of the McGwire/Sosa/Steroids era, I've been thinking that it would make more sense to give performance incentive bonuses based not on sheer numbers, but on where the player's stats lie in relation to an average of other similar players.

For example, if you earlier wanted to give a player a bonus for hitting 40 home runs, now you give him a bonus for hitting a number of home runs that is at least 130% of the average number of home runs hit by the top 50 home run hitters.

I'm curious what others think of this.

[Captain Cold Nose]

It should be whatever the two parties involved deem fit. Home runs are down, in general, btw, from the last few years.

[metfan13]

Contract bonuses cannot be based on stats.

They are based on ABs, games, IP and post season awards, All-star appearances.

[RubeBaker]

Contract bonuses cannot be based on stats.

They are based on ABs, games, IP and post season awards, All-star appearances.

ABs, games, and Innings pitched are not stats...how?

[Seattle1]

Contract bonuses cannot be based on stats.

They are based on ABs, games, IP and post season awards, All-star appearances.

Sounds like Griffey's new contract with the Mariners also has some incentives based on attendance at Safeco. If he draws more people in, he makes more money. That's pretty cool.

[spark240]

Contract bonuses cannot be based on stats.

They are based on ABs, games, IP and post season awards, All-star appearances.

You're referring to this,

Major League Rule 3(b)(5) provides as follows:

"No Major League Uniform Player's Contract or Minor League Uniform Player Contract shall be approved if it contains a bonus for playing, pitching or batting skill or if it provides for the payment of a bonus contingent on the standing of the signing Club at the end of the championship season."

While the Major League Rules don't include committee notes to help explain intent and rationale, it stands to reason that the drafters of Rule 3(b)(5) implemented the restriction on bonuses so that Hitter A doesn't have a disincentive to hit behind the runner in a pivotal game on the season's last weekend, when one more homer would trigger a $100,000 bonus, and so that Pitcher B doesn't try dialing it up to get closer to that strikeouts incentive when what his team really needs is a two-seamer down and away to get that rollover double play.

Games played are fair incentive measures. So are starts, and innings pitched. And plate appearances as well -- but not at-bats, because it would mean a player's ability to earn a bonus would be impeded by a walk, or a sacrifice bunt. Allowing plate appearances removes the problem that measuring at-bats would create.

Along the same lines, contracts cannot provide bonuses for games saved, but games finished are in play. While there may not be the potential for abuse by making saves fair game -- there's really not a situation in which a closer or his team would have different motivations -- it's certainly easier to enforce Rule 3(b)(5) by invalidating all skill-based statistics rather than itemizing which ones are legal and which are not, particularly in a sport in which possible statistical measures are virtually limitless.

I'd like to know two things.

First, where can I see the Major League Rules that this 3(b)(5) is contained within? Obviously many of us are familiar with a lot of the individual Rules (drafts, for example), but where is the actual full text available? (This is not the Collective Bargaining Agreement (http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf) or the Official [field] Rules (http://www.78youthsports.org/Baseball/Rules/MLB%20Rules%207-06.pdf).)

[EDIT: The best I can find are these summaries (http://soxprospects.wikispaces.com/Major+League+Rules).]

Second, how is it that the Yankees are set to pay A-Rod for the HR milestones? Even with the most artful contract writing, how can that be permissible in the context described above?

[metfan13]

ABs, games, and Innings pitched are not stats...how?

OK, since you're being picky. They cannot be based on performance stats like Avg, HR, ERA, W, etc. Just on appearances/playing time.

Or in Griffey's case apparently attendance. But they can't be based directly on what a player does while playing.

[gman5431]

I like preformance based contracts to a certain extent. While i aknowledge they can be bad by rewarding individual efforts, which we dont want, it also is good to see someone being rewarded on actual current performance and not past performance of sheer years in the league.

G Man

[Brad Harris]

First, where can I see the Major League Rules that this 3(b)(5) is contained within? Obviously many of us are familiar with a lot of the individual Rules (drafts, for example), but where is the actual full text available? (This is not the Collective Bargaining Agreement (http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf) or the Official [field] Rules (http://www.78youthsports.org/Baseball/Rules/MLB%20Rules%207-06.pdf).)
It's not. Not unless you're an industry insider. It's not available to the general public.

[spark240]

It's not available to the general public.

Isn't that sort of strange? Most of the items there seem like objects of natural fan interest, more so than the detailing of the terms of avarice in the CBA.

Of course, this the same league that locked up official scoresheets, wanted people to get "licenses" to report plays from games in progress, and limits press-credentialed outlets in the number and duration of their online photo galleries. Sometimes I think, it's some kind of a testament to baseball that it remains as popular as it is despite MLB's efforts to discourage people.

That summary page does say "the ML Rules are available to the public at the National Baseball Hall of Fame," presumably in the library.

[ipitch]

Contract bonuses cannot be based on stats.

They are based on ABs, games, IP and post season awards, All-star appearances.

Unless you're ARod, apparently.

http://mlbcontracts.blogspot.com/2005/01/new-york-yankees_111398168678860040.html
Alex Rodriguez - $30M marketing agreement based on home run milestones ($6M each for reaching 660, 714, 755 and tying and breaking major league HR record)

[gman5431]

Unless you're ARod, apparently.

http://mlbcontracts.blogspot.com/2005/01/new-york-yankees_111398168678860040.html

Yeah, i was wondering about that when he signed that contract - why that was allowed?

G MAn

[west coast orange and black]

metfan13: Contract bonuses cannot be based on stats.

ipitch: Unless you're ARod, apparently.

bonds' contracts had milestone homeruns and runs scored included.

[KevinWI]

Sounds like Griffey's new contract with the Mariners also has some incentives based on attendance at Safeco. If he draws more people in, he makes more money. That's pretty cool.

Mark McGwire had a similar deal in St. Louis.

[metfan13]

Unless you're ARod, apparently.

http://mlbcontracts.blogspot.com/2005/01/new-york-yankees_111398168678860040.html

Marketing agreement? Sounds like a loophole maybe? And for milestone homers and not individual season homers.

[metfan13]

metfan13: Contract bonuses cannot be based on stats.

ipitch: Unless you're ARod, apparently.

bonds' contracts had milestone homeruns and runs scored included.

Were those for career milestones?