A March 26 agreement between Major League Baseball and the Players Association not only addressed service time for 2020 and prorated salaries, but also provided the union with a $170 million advance.
The lump sum was to cover the first 60 days of the regular season as it remained on halt due to the coronavirus (COVID-19) pandemic. It was distributed to players on 40-man rosters, with the value determined by service time.
Although MLB and the MLBPA were unable to come to an agreement for the 2020 season, players will not be required to repay the money even with commissioner Rob Manfred imposing a schedule. The result has created a unique situation for 11 players.
According to Ronald Blum of the Associated Press, Los Angeles Dodgers teammates Ross Stripling and Jimmy Nelson are among those who won’t receive a paycheck during the season because the lump sum was greater than their prorated salary for 60 games:
Others who won’t get paychecks because of lower prorated salaries are Los Angeles Dodgers pitcher Jimmy Nelson and New York Yankees reliever Jonathan Holder ($277,778 each), Pittsburgh infielder Erik Gonzalez and Minnesota pitcher Matt Wisler ($268,519 apiece), Philadelphia catcher Andrew Knapp ($262,943), Chicago Cubs pitcher Jharel Cotton ($237,037), pitchers Collin McHugh of Boston, Ross Stripling of the Dodgers and Jesse Hahn of Kansas City ($222,222 each) and Milwaukee pitcher Freddy Peralta ($575,200).
Stripling believes the circumstance could create a challenge for some of the 11 players, though noted the MLBPA has a relief plan in place:
“It will be strange to receive no money or paychecks throughout the year,” he said. “I’m thankful for my background in finance, because I’m comfortable with my ability to budget. I do worry about the 10 other guys in my situation. Technically will be receiving zero income until next April. That’s a long time to budget ahead.”
“Our PA is offering a stipend of sorts for guys in similar situations. But I don’t know how much money or how often they can receive it. It also comes from our `war chest,′ which is money saved for salaries in case of a work stoppage in 2022. Most guys will try to avoid pulling money from that unless they are in dire situations.”
Nelson is entering his first season with the Dodgers. His contract reportedly includes a $750,000 salary this year, and the Dodgers have a $2 million option for 2021 with a $500,000 buyout. Nelson’s deal additionally has performance bonuses, though some of which he won’t be in position to qualify for by sheer fact of the season being cut to just 60 games.
Stripling and the Dodgers avoided arbitration in January by agreeing to a one-year, $2.1 million contract. However, Stripling structured his contract so that $1.5 million of that was in the form of a signing bonus.
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