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Robert Smith

๐Ÿ‘ค Speaker
1416 total appearances

Appearances Over Time

Podcast Appearances

Planet Money
How we got free agents in baseball

I mean, it's a lot.

Planet Money
How we got free agents in baseball

Well, so is it a lot or a little?

Planet Money
How we got free agents in baseball

It's a lot of money relative to somebody with a normal job today, but it's like, I don't know, 30 times less than a star baseball player would make today.

Planet Money
How we got free agents in baseball

And so let's think about why.

Planet Money
How we got free agents in baseball

Why were top players in baseball making so much less in 1969?

Planet Money
How we got free agents in baseball

Well, part of it is baseball was just a smaller game then.

Planet Money
How we got free agents in baseball

It's a more lucrative game today.

Planet Money
How we got free agents in baseball

There is more money overall.

Planet Money
How we got free agents in baseball

The pie is bigger.

Planet Money
How we got free agents in baseball

Broadcasting, merchandising, everything, advertising.

Planet Money
How we got free agents in baseball

But there's another reason, a reason that's, you knowโ€”

Planet Money
How we got free agents in baseball

the center of today's show, and that is the players didn't have very much leverage because of the reserve clause, because they couldn't go play for other teams.

Planet Money
How we got free agents in baseball

So as a result, they were getting a smaller share of the money that was coming into the game, a smaller share of the pie.

Planet Money
How we got free agents in baseball

It was somewhere back around 2010.

Planet Money
How we got free agents in baseball

There was, in fact, this scandal where Google and Apple and a few other companies had these secret deals not to recruit each other's employees.

Planet Money
How we got free agents in baseball

It wasn't quite as stringent as the reserve clause, but it was definitely illegal.

Planet Money
How we got free agents in baseball

And they had to pay hundreds of millions of dollars because you can't do that.

Planet Money
How we got free agents in baseball

So this is why Kurt Flood wanted to sue baseball.

Planet Money
How we got free agents in baseball

And when he was thinking about doing this, trying to make his decision, he talked to the head of the Baseball Players Union, which had only recently become a full-fledged official union.

Planet Money
How we got free agents in baseball

And the head of the union tells Flood that there have been a couple of similar court cases in past decades and that the players always lost.