Home -> Law Blog Directory -> Media & Entertainment Law Blogs -> Sports Law Blog

Media & Entertainment Law

: Sports Law Blog

Management Moves to 5-0 in Hearings With Houston Win Over Loretta

By Rick Karcher, Michael McCann, Geoffrey Rapp, Greg Skidmore, and Howard Wasserman

The Houston Astros won their second hearing in five days by defeating Mark Loretta in salary arbitration today. The owners now hold a spotless 5-0 record against the players this year, and they could easily win the final three cases. Regardless of those results, the win against Loretta means that management now has a twelve year winning streak. In 1996, the players won 7 of the 10 hearings. With the total of all hearings since 1974 moving up to 481, management has a 58% winning percentage (278 management victories, 203 player victories).

Loretta will be paid $2,750,000 rather than the $4,900,000 he requested.

His case was heard Monday by arbitrators Margaret Brogan, Stephen Goldberg, and Fredric Horowitz. Brogan?s panel record is now 3-2 in favor of the team. Goldberg?s third hearing this year pushes his panel and individual record to 24-16 in favor of the team. Horowitz was a first-time baseball salary arbitrator according to my spreadsheet.

My prediction record this year has dropped to 3-2. Loretta?s case with the Astros was challenging because of the large gap. The panel might have been bothered by Loretta?s number plus his projection as a back-up player. His highest previous salary was $5,000,000 in 2002 for the Brewers. If the arbitrators felt that Loretta was really going to be a utility infielder this year, I can see how the Houston number made sense to them. However, with his incentives last year pushing his salary to $3,500,000, the decision amounts to a pay cut. In fact, the Houston offer matches his 2005 salary with the Padres.

Full post as published by Sports Law Blog on February 19, 2008 (boomark / email).