Commissioner Fay Vincent told major league officials Monday that the present salary structure is "out of hand" and the game must find a way to fairly share revenues.
In his annual report to the clubs at the winter meetings, Vincent identified baseball's biggest challenges as future TV revenue, the problem of player compensation and minority hiring."Because of local revenue desparity our clubs generate considerably different amounts of revenue," Vincent said. "Our most prosperous club will generate $100 million a year while at the other end of the spectrum a club will generate less than $40 million."
Seattle Mariners owner Jeff Smulyan has put the club up for sale because he feels the team cannot generate enough revenue from local medium to compete.
"The small-market franchise has to compete on the field but its alternatives are limited," Vincent said. "Small-market clubs simply have no choice but to arrange their payrolls on an entirely different scale. Moving money from club to club is not the total answer."
Pittsburgh, another small market, already has lost free agent Bobby Bonilla to the New York Mets and may have to trade Barry Bonds. The Mets gave Bonilla $29 million for five years and Bonds will seek at least $6 million per season.
Vincent blames salary arbitration for the sharp rise in salaries, which averaged $851,492 in 1991 and probably will reach an average of $1 million in 1992.
"The result of arbitration is that it imposes large-market financial prices on small market enterprises," Vincent said. "The trickle down effect as free agent signings seep into the salary arbitration process is like facing Mantle and Maris back-to-back: if one doesn't get you the other one will."
Vincent said baseball must find a way to fairly share revenue. An economic study committee currently is examining the situation.
The money crunch may get a little worse when current TV contracts with CBS and ESPN expire at the end of the 1994 season. Vincent expects revenues per team from the next TV contract will decrease $4 to $5 million.
Vincent also addressed baseball's minority hiring record. Since the start of last season, 14 teams managerial changes were made, but only one of the jobs was filled by a minority: Hal McRae replaced John Wathan in Kansas City.
Vincent said the focus should be to add to the pool of minority candidates at the minor-league level.
"It is not my place to question the good faith or indeed the wisdom of individual club decisions," Vincent said. "However, the situation does certainly require continuing attention. I am against quotas. I am in favor of insuring opportunities exist for qualified minority members."