MLB news: National emergency declaration allows league to suspend contracts

A provision in MLB contracts allows commisioner Rob Manfred to suspend all contracts -- which means freezing pay -- in the event of a national emergency.

The coronavirus pandemic has led to the suspension or cancelation of nearly every major professional sports league around the country and even worldwide.

Major League Baseball was swift to respond to the NBA's decision to suspend the league. Commissioner Rob Manfred elected to suspend spring training and delay Opening Day by at least two weeks. But there is also a chance Manfred could suspend all contracts during the stoppage.

Nathaniel Grow–Professor of Business Law and Ethics at Indiana University–cited a provision in all player contracts that would allow the Commissioner to “suspend the operation of this contract during any national emergency during which Major League Baseball is not played:”

https://twitter.com/NathanielGrow/status/1238808771863945216

There have yet to be any indications Manfred will take this route. However, there is most certainly precedent in other sports.

Adrian Wojnarowski reported Friday afternoon the National Basketball Players Association sent out a memo regarding a “doomsday” provision. It would lead to the forfeiture of a percentage in player salaries in the event the remainder of the season is canceled.

In email to players, the NBPA spelled out terms on a doomsday provision included in CBA that could free owners from paying players a percentage of their salaries should rest of season be lost to the coronavirus pandemic. Story on ESPN: https://t.co/s3cQSqCN8w

— Adrian Wojnarowski (@wojespn) March 13, 2020

However, it remains unknown whether the remainder of the 2019-20 NBA season will be canceled.

The MLB provision is slightly different. Although baseball will almost certainly be played at some point in the near future, the Commissioner himself can suspend pay because of the national emergency provision.

Manfred has plenty of power in this regard. But in the same token, MLB are affording the players time and space in the wake of recent cancelations. Players have been told they can return home, though some–including the entire New York Yankees roster–may also choose to remain at spring facilities.