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Discussion Of 2011 Major League And Minor League Minimum Salaries

Yesterday, it was announced that the Major League Baseball minimum salary in the 2011 Championship Season will be $414,000. It is a $14,000 raise over the 2010 minimum.

Article VI of the 2007-2011 MLB Collective Bargaining Agreement (referred to as the “Basic Agreement”) deals with player salaries.  Specifically, Section B of the Article contemplates Minimum Salary.  The 2011 season is the last one that will be governed under the current Basic Agreement.  Section B calls for a minimum salary “at the 2010 rate per season plus a cost of living adjustment, rounded to the nearest $500, provided that the cost of living adjustment shall not reduce the minimum salary below $400,000.”  Later in Section B, the Basic Agreement explains how the new number is computed.

Cost of living adjustments for the Major League minimum salary described above in paragraph (1) shall be computed as follows: To determine the 2011 salary rate, $400,000 shall be multiplied by a fraction, the numerator of which is the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics (CPIW) for November 2010 and the denominator of which is the CPIW for November 2008.

Based on my understanding of the CPIW, the numerator should be 214.750 and the denominator 207.296.  That fraction, multiplied by $400,000, comes out to $414,383.30, which rounded to the nearest $500, actually equals $414,500.  Was it just lazy reporting, or did the MLB actually make an error in its rounding, because every report I have read says that next year’s minimum will be $414,000.

Minor League minimum salary for players on their clubs’ 40-man rosters is set at $67,300 (up from 2010’s $65,000), but only players who have at least one year of being on the 40-man under their belt or at least one day of MLB service will be bound by the salary floor.  For Minor League players on the 40-man roster who do not fit into either category (i.e. players just named to their teams’ 40-man rosters and without any MLB service), their minimum salary will be $33,700 (up from 2010’s $32,500).

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.