The MLB’s Compensation Process
Reading Time: 2 minutesFollowing his victory in the Home Run Derby, New York Mets star Pete Alonso won $1 million in bonuses. In fact, this is more than his base salary of $676,775. How is this possible? First, it is important to understand how contracts in the MLB work. Similar to other sports, the MLB has a collective bargaining agreement (CBA). This agreement serves as the basis of the relationship between players and their teams. One aspect of this agreement is the rights that both players and teams reserve regarding contracts. Once a player makes the Major League, their...
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