Was Babe Ruth covered by Workers Comp?

Posted: 20-12-2005 | Views: 58 Author: David Skul Worker’s Compensation insurance was developed to ensure protection of workers who are at risk of hurting themselves accidentally at work. Worker’s Compensation is a benefit program established to pay a worker for any injuries that are work related. The employer is responsible for the costs of the insurance. So what about professional athletes who’s physical performance is so important? Even a minor injury can end their careers and their fame. Of course, like every other “business”, professional baseball players are covered by Worker’s Compensation in Major League Baseball. Because of the large sums of money involved in professional baseball, not only is worker’s compensation very expensive, it is also very intricate. The often-quoted phrase, “sports is too much of a game to be a business and too much of a business to be a game” continues to stir our curiosity and our spirits because the nature of corporate sport elicits strong emotions. But- yes, indeed – baseball is a game and a business.

Professional athletes are generally covered under workers’ compensation and are entitled to team benefits in many cases that are an offset against any workers’ compensation payments. There are some statutory and case law exceptions to the general rule, and the laws vary by the state and the sport involved. For example, worker’s compensation laws for baseball must differ from worker’s compensation laws for boxing since the object of boxing is to injure the other player “on the job”.

The compensation system of Major League Baseball differs from the common worker’s compensation in that players generally are not paid according to current performance or a realistic anticipation of future performance. These athletes are, rather, compensated based on what they have accomplished in the past. The specific measures of performance considered here are batting average, home runs, runs batted in, wins, and earned run average; the first three items are used to evaluate position players, while the last two apply to (starting) pitchers. The existing structure of player compensation in major league baseball assumed its current form in the mid-1970s when salary arbitration and free agency were established. Because bonuses based on individual performance statistics are specifically prohibited by the league, the overwhelming majority of compensation comes in the form of contractually fixed salary payments.

By 1999 the average salary being paid to the “elite” baseball players was in excess of US$1,000,000, however, by the year 2002, this went up to an average of US$4,000,000 with 13 players contracted to earn salaries of US$13,000,000 and 1 player earning a staggering US$25.700,000 per year.
A game it may be but it’s certainly a lucrative one.

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