Athletics have a good reason for outspending the Twins this offseason

The Minnesota Twins are being out-spent by one of the cheapest franchises in Major League Baseball but the Athletics have a good reason for shelling out some cash.

Oakland Athletics v Chicago White Sox
Oakland Athletics v Chicago White Sox | Nuccio DiNuzzo/GettyImages

The Minnesota Twins offseason has been frustrating. One year after slashing payroll by $30 million, the biggest question hasn’t been which free agents they should sign, but which contracts they should dump as they look to operate around $130 million this season.

This is enough to make a Twins fan upset but even more so when you see what the Athletics have done this offseason. The Athletics are known as one of Major League Baseball’s stingiest franchises but signed Luis Severino to the largest contract in franchise history last month and reportedly agreed to a five-year, $60 million extension with Brent Rooker.

While the bar is low, the Athletics offseason has been busier than the Twins thus far. But the franchise formerly rooted in Oakland, has a good reason for throwing money around this winter.

The MLB Players Association is putting pressure on Athletics to spend

At first glance, the Athletics’ spending could be an attempt to impress their new fan base as they’ll play in Sacramento for the next three seasons before moving to Las Vegas in 2028. But Evan Drelich and Ken Rosenthal of The Athletic reported during last month’s Winter Meetings that the A’s needed to add significant payroll this winter or risk a grievance from the Major League Baseball Players Association.

According to the report, baseball’s collective bargaining agreement requires teams to carry a payroll more than 1 ½ times the money they receive from local revenue sharing. With the move to Sacramento, the A’s will make 100 percent of their revenue-sharing allotment next season and a source estimated that figure will be $70 million next season.

By using the estimate, the A’s would need to reach $105 million in payroll next season but currently have committed $70 million even after signing Severino to a three-year, $67 million contract, acquiring Jeffrey Springs and his $10.5 million salary in a trade with the Tampa Bay Rays and signing Rooker to an extension that will pay him $10 million next season.

This means that more big-money moves could be made in the coming weeks to help the Athletics get up to the floor. While playing in a minor league ballpark for three years could be a drawback, it has the A’s in play for several top free agents while the Twins crunch numbers ahead of next season.

Athletics spending spree makes Minnesota Twins’ offseason look even worse

In case you’re wondering if the MLBPA will come knocking on the Twins’ door, it’s probably not going to happen. The amount the Twins made in local revenue sharing is unknown but the team made $342 million in overall revenue in 2023 according to numbers provided by Forbes.

A Minnesota Star Tribune article in 2008 stated that the Pohlad family aimed to spend 50 to 52 percent of revenue on payroll but that figure would have been around $170 million to $177 million if it were applied last season. Other factors such as a decrease in television revenue and the intent to sell the team also may have played a factor but the Twins aren’t knowingly breaking any CBA rules.

Even if the Twins were in violation, The Athletic’s report states that a club in violation doesn’t automatically receive punishment, but puts itself at greater risk of penalty if the union brings a grievance.

Perhaps baseball wouldn’t have its major payroll disparity if they urged more teams like the Twins and Athletics to spend money. Instead, the Athletics may continue to be a surprise player in big-money free agents while the Twins spend another offseason on the couch.

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