NEW YORK (AP) — Major League Baseball Deputy Commissioner Dan Halem and Major League Baseball negotiator Bruce Meyer met Thursday for an hour and a half to determine the next step in stalled negotiations for a deal that end the bosses’ strike.
Union legal counsel Ian Penny and MLB Executive Vice President Morgan Sword also participated in the session.
The executive board of the players’ association had scheduled a teleconference later Thursday. The two sides could then decide on the next step in the lengthy negotiations.
The previous session foundered on Tuesday after nine straight days of contact in Jupiter, Florida.
Unable to come to an agreement, Commissioner Rob Manfred announced the cancellation of Opening Day and each team’s first two series. Manfred justified the measure by saying that there would not be enough preparation time for March 31, the day set for the opening of the campaign.
The negotiating teams then returned to their bases.
The meeting between Halem and Meyer was the first between the parties after leaving Florida.
The sides made progress through 16 1/2 hours of meetings that culminated at 2:30 a.m. Tuesday, but remain far apart on major economic issues: the luxury tax, the new pre-arbitration bonus fund for players and Minimum salary. The parties reacted irritably to each other’s responses when contacts resumed hours later.
The ninth stoppage of professional baseball in the United States reached its 92nd day on Thursday. It is the first labor dispute to cause games to be canceled since the 1994-95 strike caused the World Series to be canceled for the first time in 90 years.
Fitch Ratings said the cancellation would not impact the debt rating of MLB and the stadiums for now due to the level of liquidity that includes sufficient reserve funds for a one-season layoff. The ratings agency said MLB’s broadcast contracts are structured for ongoing payments in 2022 during a lockout, with the possibility of refunds due later.
“The coronavirus-affected 2020 campaign demonstrates that the league and its teams have the financial resources to endure a shortened season, albeit with reliance on liquidity support from owners and debt financing,” Fitch said. “Under a one-month cancellation, we expect that MLB will be able to preserve national broadcast revenues at levels close to those agreed to under contract.”
Fitch added that “an extended stoppage could anger fans and corporate sponsors, which could not only hurt revenue in the current season, but also hurt the sport’s long-term growth.” He said “team and stadium finances will face debt rating pressures sooner than the league if the shutdown extends beyond April.”
