On Collusion, Part III

In mid-January, 1988 the damages awarded to the first group of players from the 1985-86 off season were announced. Seven players from the original group of 1985 free-agents were awarded what was called “new-look” free agency, that is they could receive offers from other clubs for a time period until March 1, of 1988. Most famous from this group is Kirk Gibson, who left the Detroit Tigers for the Los Angeles Dodgers. Gibson then went on in 1988 to hit his famous home run in the World Series that year. Next, arbitrator Thomas Roberts said that the owners owed the players $10.5 million dollars for their collusion in the 1985-86 off season.

                                        No collusion-no home run?

The 1986-87 off season saw a second group of free-agents left out in the cold. Again, this time in October, 1989 arbitrator George Nicolau ruled that the owners had worked together to limit free-agency. Once again several more players received “new look “ free agency as part of the damages. The players additionally received $38 million in damages for the 1986-87 off-season. When the ruling came down for the 1987-88 off season the owners were on the hook to the players for another $64.5 million.

In addition to the payments for each of the three years the owners colluded, the owners were forced to come up with compensation to the players for losses related to multi-year contracts and bonuses. Finally, in 1991, the players and owners reached a settlement that would compensate the players with $280 million that would be distributed through a formula devised by the union.

Tomorrow: Collusion in the 1980's and beyond