A Correction? On Contracts, Callaspo, and the Atlanta Braves

We seem to have created some confusion over the past few days involving Alberto Callaspo and the thought that the Braves could save a bit of spare change – perhaps to be redirected toward Hector Olivera – if Callaspo were to be cut from the team in the next couple of days.

At issue is a clause buried in the depths of the MLB Collective Bargaining Agreement (CBA), that 311 page document governing all financial arrangements made between Major League Baseball and the MLB Players’ Association.  It’s boring and legalistic, but here goes, starting at the end of page 33:

ARTICLE IX—Termination Pay

A. Off-Season

B. Spring Training

A Player whose Contract is terminated by a Club under paragraph 7(b)(2) of the Uniform Player’s Contract for failure to exhibit sufficient skill or competitive ability shall be entitled to receive termination pay from the Club in an amount equal to thirty (30) days’ payment at the rate stipulated in paragraph 2 of his Contract, if the termination occurs during spring training but on or before the 16th day prior to the start of the championship season. If the termination occurs during spring training, but subsequent to the 16th day prior to the start of the championship season, the Player’s termination pay shall be in an amount equal to forty-five (45) days’ payment at the rate stipulated in paragraph 2 of his Contract.

Okay – What Does That Mean?

Atlanta Braves infielder Alberto Callaspo (1) swings and pops out to third base. Mandatory Credit: Reinhold Matay-USA TODAY Sports

Here’s the important bits:

• Player must be tendered a (standard, common) Uniform Player’s Contract
• Player is terminated (cut or released) by the Club
• In Paragraph (B), the dates involved would be March 20st (16 days prior to season start) and April 5th (opening… night).
• Paragraph (B) also tells us how much severance pay is required – 30 days’ pay (out of the 6 months of the season) if a player is cut on or before March 20; 45 days’ pay if between March 21 and April 5.
• Callaspo was tendered and signed a $3 million free agent deal.  30 days of a 183-day seasonal contract is roughly 1/6th of the total or ~$500K.
• Once the season starts, the full contract dollars are guaranteed

It’s that last word – “guaranteed” – that’s the cause of today’s confusion.  Is the contract of Alberto Callaspo – or anyone else – “guaranteed“?

If so:  the Braves owe Callaspo $3 million for this year.

If not:  they could owe him as little as $500K… and save the “extra” $2.5 million for Olivera.  So yeah – it kinda matters.

Baseball is Not Football

(And hallelujah for that) The NFL is infamous for the fact that they can seemingly cut any player from their contract at any time.  That’s partly true: some contract monies are typically guaranteed; some are not.  If you’re in those “not” years of your NFL deal, then you will often be looking for a new home.  But those clauses are expressly written into the deals.

Not so in baseball:  Most contracts are guaranteed.  This is why so many teams get saddled by “bad” contracts and why the union is said to be the most powerful in all of sports.  If you have a contract – you are getting your money.  Just ask the Yankees about how that’s working out with Alex Rodriguez.

Kinda.

When is a Guarantee not a Guarantee?

We are aware that there are other, opposing positions on this topic – from people we respect:

We don’t actually dispute that Callaspo’s contract is guaranteed – our question involves exactly when that “guarantee part” kicks in.

A Better Argument?

Our Fred Owens encapsulated this argument well during our email exchanges this morning:

“The players get paid for the championship season not spring training – except for meals, thus some players live in a van – and a newly tendered contract  like Callaspo’s doesn’t actually begin and therefore become become guaranteed, until the first championship season starts.”

In fact, that appears to be wholly consistent with the wording of the CBA:  the “guarantee” of full payment is for the season – not for the Spring.  And indeed, there would be little purpose for that CBA “termination pay” clause excepting that there is indeed a distinction between “guaranteed” and “non-guaranteed” contracts.

But there’s no language about “guarantees” in that Standard Uniform Player Contract.  Actually, what it does do is refer to the same clauses I cited above involving termination compensation.

Here’s a specific example involving the White Sox and Dayan Viciedo:

"But this [new deal with the Blue Jays] isn’t the first contract Viciedo has agreed to this winter. He avoided salary arbitration with the White Sox in January, signing for $4.4 million for 2015. But since most arbitration contracts aren’t guaranteed, Chicago was able to cut bait at only roughly one-sixth of the cost."

So Why Can’t the Braves Just Cut Upton?

Good question:  Fred also referred to a concept of a “force” contract.  In that context, we’re effectively talking about a multi-year deal.  Ryan Howard, David Wright, B.J. Upton… these guys have multi-year deals that cannot be re-evaluated on a year-to-year basis (how that would change baseball!!).

Mike Minor just won his arbitration case.  By rule, though, his arbitration deal is a single-year, non-guaranteed contract.  Technically, the Braves could declare that he isn’t ready and terminate his contract.  That will not happen (terrible precedent; there would be a grievance, yada yada), but it could.

He Said/We Said

Fred and I believe that Callaspo was offered – tendered – a standard player contract for the 2015 season… which hasn’t begun yet, so we think he and his deal can be terminated for cause (i.e., he wasn’t good enough to make the club) in exchange for 30 or 45 days’ salary.

Dave O’Brien – and Mark Bowman for that matter – believes that it’s a guaranteed deal – probably because he signed as a free agent and probably because that’s part of the deal with free agent contracts.  We have found no CBA language that makes such a distinction… but I suppose if Callaspo believes that he’s owed $3 million no matter what, then that might help to explain his physical condition upon showing up to camp.

So who is right?  After a full morning of research, I still don’t know for certain.

Today is March 17.  If Alberto is still with the club on April 5th (he’s hitting .115), I think we’ll probably have our answer… especially if by some miracle Hector Olivera becomes a Brave in the next couple of days.

There ya go… clear as muddy Georgia clay.

TomahawkTake.com Writer Fred Owens contributed to the information provided in this article.  We have reached out to multiple sports agents to seek their opinions – if they respond, we will advise in the comments section.

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