MLB players net sports betting marketing concession
New collective bargaining agreement will allow active players to sign brand ambassadorial-style deals with sportsbook operators
Major League Baseball (MLB) players will be free to sign marketing-led deals with sports betting operators as part of a new collective bargaining agreement (CBA), the league has confirmed.
Under the previous CBA, only the league itself and MLB teams could sign deals with sportsbooks and igaming operators, as well as former players.
Active players and those still playing in the league are prohibited from signing such deals under the old agreement.
However, the new CBA opens the door to brand ambassadorial-style deals where athletes lend their likeness and name to sportsbook operators, as well as making appearances at promotional events.
Reigning NHL MVP and Edmonton Oilers star Connor McDavid became the first active athlete from the four major professional US sports leagues to sign a deal with a sportsbook operator last month, striking a partnership to become a BetMGM ambassador.
Players from high profile MLB teams like the New York Yankees, Chicago Red Sox, and the Ontario-based Toronto Blue Jays all represent attractive sportsbook ambassadorial targets for operators.
In addition, the agreement permits advertising on player uniforms for the first time, a potentially useful tool for sportsbooks in building brand presence in respective markets.
MLB players are still barred from placing bets on MLB series.
In a nod to data-led deals, MLB teams are barred from selling or licensing a player’s confidential medical information, personal biometric data, or any non-public data used to evaluate player performance in practises or training sessions.
The new CBA was ratified by both players and MLB officials last week following weeks of intense negotiation between both sides, discussions which were previously deadlocked.
The impasse between the two sides has led to the start of the next MLB season being postponed until April 7, from a previous opening day start of March 31.
The new five-year CBA includes increased minimum salaries, a new pre-arbitration bonus pool to reward the top young players in the game, a raise in competitive balance tax thresholds, and the introduction of a universal designated hitter.
Also included is the widest-ranging Draft lottery in pro sports, a system to prevent alleged service-time manipulation and limits on the number of times a player can be optioned in a season to address concerns regarding so-called “roster churn.”
The deal also includes an expanded 12-team post-season format, bringing playoff baseball to two additional markets each year.