A Save for Minor-League Baseball: The 1963 Player Development Plan
This article was written by Michael Rinehart Jr.
This article was published in When Minor League Baseball Almost Went Bust: 1946-1963
John Galbreath, left, and his fellow Pittsburgh Pirate coowners, Frank McKinney and Thomas Johnson, shown in 1959, were adamant that minor-league baseball had to be stabilized. (SABR-Rucker Archive)
Prior to the complete overhaul in 2020, the biggest shakeup of the minor-league baseball structure came in 1963 with the introduction of the Player Development Plan. Considering the downward trend in the popularity and sustainability of minor-league teams throughout the 1950s, Commissioner Ford Frick assembled a committee of baseball minds to address the issue.1 What came from it was a lifeline thrown to minor-league baseball in the form of the Player Development Plan. The plan called for each major-league team to essentially take over much of the financial burden of five minor-league teams in order to save minor-league baseball.2 The minor leagues and the major leagues have had a longstanding relationship with one another and play an important role in each other’s success.
In 1901 the consensus across all the minor leagues was the necessity to unify and protect themselves from the feuding major leagues. The brand-new American League was attempting to join the major-league ranks, and was doing so by stealing players, including some of the game’s biggest stars, from the National League, using the promise of higher salaries and a more professional style of play.3 Minor-league owners, who had protection with the National League through the National Agreement, now feared that this feud would negatively affect them. On September 5, 1901, the Leland Hotel in Chicago hosted a meeting of minor-league presidents and executives who decided to unify as one solid organization, independent from the majors.4 The National Association of Professional Baseball Leagues (NAPBL) was thus born and provided a solid backing and voice for minor-league baseball.
The NAPBL set guidelines and cemented the initial structure of the minor-league baseball system, with clearly defined classifications for leagues. The first NAPBL season in 1902 included four levels, from Class A (the highest) to Class D, the lowest.5 The classification system stood for decades with a handful of minor adjustments over the years. The first modification came in 1912, when the AA classification was added and thus became the highest level of the minors, a structure that lasted through the 1945 season. In 1936 the A1 classification was introduced, adding a level between AA and A. After the 1937 season, the NAPBL saw the need for an additional classification below Class D, so an E level was added, although it wound up being utilized for part of just one season, 1943.6
The first major restructuring took effect for the 1946 season. Minor-league teams and leagues struggled throughout the first half of the 1940s due to World War II, but the end of the war in the summer of 1945 signaled a huge return for baseball as part of renewed nationwide interest in recreation and getting back to a sense of normalcy. In 1946 the AAA classification became the new highest level of the minors, with the A1 level essentially being renamed AA. Classes A through E remained in effect as well.7 Minor-league baseball reached its peak of popularity and success in 1949, with 59 leagues and 448 teams.8 But the 1950s proved to be a different story for minor-league baseball, with a sharp decline in attendance, leading to the rapid disappearance of teams and leagues. Many contributing factors are cited in the blame game for this sudden decline, including the introduction of television, home air-conditioning, the Korean War, and the improvement in transportation that saw the creation of the interstate highway system, as well as a shift from city life to the suburbs.
However, perhaps the simplest reason for the decline is that minor-league baseball arguably expanded too aggressively to be sustained. When soldiers returned home, league and team owners cashed in on the available players and the desire of fans to get out to the ballpark. This led to a plethora of teams in small towns that ultimately were unable to support a club for the long haul. As attendance across the minor-league landscape declined and operating costs rose, many teams and leagues simply folded, sometimes in midseason. Knowing the significance of the minors in the success of major-league baseball, Commissioner Frick knew that action needed to be taken to right the ship and get the minor leagues back on track. A Player Development Fund of up to $1 million was approved in 1959 as a temporary solution to saving the minor leagues.9 The majors sent payments to minor-league teams, ranging from $2,000 in the lower levels up to $20,000 in AAA, to help subsidize rising operating costs.10 Although this was a very welcome financial addition, it was clear that it wouldn’t be enough. Commissioner Frick then created what became known as the Major-Minor League Committee to find a more permanent solution.11
Often referred to as the “Save the Minors Committee,” it was led by Pittsburgh Pirates owner John Galbreath and consisted of three representatives from the American League, three from the National League, and six from the minor leagues, with one representative from each of the six class designations (AAA to D).12 This group of 12 men with decades of experience in baseball was given the task of stabilizing the minors with a comprehensive plan that would be mutually beneficial to all parties.
Some of the key points the committee addressed included creating a steady flow of prospects from the minors to the majors; a financial-stability blueprint for the minors to keep teams and leagues from folding; and an overall balanced and organized system of teams and leagues.
After more than a year of working on viable solutions for this overhaul of the minor-league structure, the Major-Minor League Committee met on Friday, April 20, 1962, in Chicago to finalize a report for Commissioner Frick. What became known as the Player Development Plan called for the complete overhaul of the minor-league baseball structure.13 The specifics still needed to be ironed out, but the initial outline of the plan was as follows: There would be a guaranteed operation of at least 100 minor-league clubs (five franchises for each of the 20 National League and American League teams). Classifications would be merged into AAA, AA, and A; this would eliminate B, C, D, and E classifications; the breakdowns would be 20 AAA teams, 20 AA teams, and 60 A teams. Further, each major-league team would be responsible for taking a larger financial burden of their minor-league affiliates, providing a full roster and paying most of their salaries. Minor-league owners would be responsible for the ballpark rental and some other financial responsibilities. Lastly, Player Development Fund payments to minor-league teams would end.14
Commissioner Frick gave his full support to the broad general plan presented to him by the committee and called a special meeting of major-league owners to share the details.15 The Player Development Plan was approved unanimously and was to begin with the 1963 season, with the full plan set to be in effect by 1965.16 The Major-Minor League Committee would continue to fine-tune the plan and fill in more specific detail for a smooth rollout. More than four months after the approval of the general plan, these specific details were added and scheduled to be voted on at the coming 1962 Winter Meetings:17
- Major-league teams would provide a full roster to at least five minor-league teams, including coaching staff. The major-league team was to provide 21 players in AAA, 19 players in AA, and 18 players in A. Minor-league teams were allowed to independently sign three free agents; if the contracts any of these players were subsequently sold, all revenue would stay with the minor-league club.
- The major-league team would pay the salaries of managers.
- Major-league teams would pay for most of the players’ salaries over a set monthly limit: $800 per month for Class-AAA players, $150 per month for Class-AA players, $50 per month for Class-A players and full salaries paid for former Class-D teams.
- Major-league teams would cover all expenses related to spring training, including transportation to the minor-league city afterward.
- Minor-league teams would cover park rental, traveling expenses, lodging for away games, and meals.
- Minor-league teams would give their major-league affiliate the right to select player contracts and move them during the season.
- Any player whose contract a minor-league club owned outright could be purchased by their major-league affiliate for a fee ranging from $5,000 to $20,000, before being offered to another team.
- The realignment of minor-league classifications would be as follows: International League, American Association, and Pacific Coast League to remain AAA, while Texas League and Mexican League remain AA and are joined by Eastern League and South Atlantic League.
- All leagues that were in Class B, C, and D would be reclassified to Class A.
The Player Development Plan had the support from NAPBL President George Trautman, but it still needed to be voted on at the Minor League Winter Meetings, which were being held November 26 to 29 in Rochester, New York. Although some minor-league officials voiced concerns regarding this plan as a permanent solution, it was seen as at least a step in the right direction and a necessity to successfully operate a sound minor-league system. However, there were still a few details to be worked out before an approval vote, one of which was that the plan allowed for 20 AAA teams (one for each major-league team), but in 1962 there had been 22 AAA teams split between the three leagues. The Vancouver Mounties of the Pacific Coast League were dropped due to their inability to reach an agreement with a major-league club, leaving the league with seven teams. Meanwhile, the Omaha Dodgers folded, leaving the American Association with only five teams.
The PCL was ready to absorb Denver to round out to eight clubs, but that would leave the American Association with only four teams. From there, a plan emerged to combine the four-team American Association with the International League to create a 12-team league with two divisions. However, the International League rejected the proposal. With each minor league responsible for the expenses of travel, it would be unfavorable for either the PCL or International League to take on more than eight clubs and broaden the distance of travel.
Another plan thrown into discussion was shifting Salt Lake City to the American Association to give them and the Pacific Coast League each six teams. The PCL was understandably unwilling to lose one of its most successful franchises and downsize itself, so it was back to the drawing board. It took the full four days of the Winter Meetings, but with the promise of financial help from the major leagues to cover added transportation costs, the American Association was dissolved and the PCL and International League each became a 10-team league. From the American Association, the PCL took on Denver, Oklahoma City, and Dallas/Fort Worth, while the International League acquired Indianapolis and Little Rock. 18
With the AAA problem solved, the Minor League Winter Meetings concluded with approval of the Player Development Plan. The next and final step was getting a green light from the major leagues at their Winter Meetings, and since the plan had been initiated by the major leagues, it was no surprise that it passed unanimously. After many months of working out all the details for a restructured minor-league system, the Player Development Plan was finally enacted. It came at the expense of the American Association, but Commissioner Frick appointed its president, Jim Burris, to oversee the Player Development Program to ensure a smooth rollout for the 1963 season. A new chapter of baseball was opened.
The Player Development Plan of 1963 provided much-needed relief to the minors’ outdated structure. Although there was still some doubt and opposition to the plan, ultimately it proved to be an overall success. Minor-league teams now had full rosters of players, due to either signing a working Player Development Contract with a major-league team or, in a few cases, being owned outright by the big-league club. The restructuring organized the system and created a clear path for major-league teams to move their prospects up the ladder through the minors. Possibly the most important result of the Player Development Plan was the stability it brought to minor-league team owners and minor-league baseball as a whole. The big-league “parents” had now taken on a greater portion of the financial burden from their minor-league affiliates, which resulted in the success of leagues and clubs finishing out full seasons and avoiding crippling financial losses.
There were a couple leagues in organized baseball to note that fell outside the Player Development Plan. The Appalachian League, which had been a short-season Class D league, was given the new distinction of a Rookie League. The Appalachian League primarily only included players who had no prior experience in affiliated baseball and played a shorter 70-game season that began in late June. All teams in the Appalachian League were operated by major league clubs. Additionally, the Mexican League was granted admission to the National Association of Professional Baseball Leagues in 1955 as a Class AA league and continued that designation through the 1963 restructuring. Although the Mexican League retained the Class AA status, it was not included as part of the Player Development Plan.
The Player Development Plan created a system that, with some fine-tuning over the years, remained in place until 2020 as a staple in the relationship between minor- and major-league baseball. The minors survived the dark days of low interest and sparse attendance and came out on the other side thriving, going on to unprecedented attendance numbers and popularity. Minor- and major-league baseball go hand in hand and are integral to each other’s success. Their relationship over the years has played an important role for communities across the country, connecting generations of families to America’s greatest game.
MICHAEL RINEHART JR. is a parks and recreation professional by day and an avid baseball historian by night. He was born into a family of Red Sox fans and pledges their allegiance for life but grew up in Arizona and adopted the Diamondbacks as another team to root for. He now lives in California. It was the minor-league scene that ignited his passion for the history of America’s pastime. His main areas of expertise and focus of historical research are on the California League and nineteenth-century baseball in California. Michael has been a member of SABR since 2015 and enjoys spending time with his wife, daughter, and two cats.
ACKNOWLEDGMENTS
This article was edited by Marshall Adesman and fact-checked by Mike Huber.
SOURCES
In addition to those listed in the Notes, information was provided by the following:
Cooper, J.J. “A Complete Working History of the Working Agreement Between Major and Minor Leagues,” https://www.baseballamerica.com/stories/a-com-plete-history-of-the-working-agreement-between-major-and-minor-leagues/, October 18, 2019.
Kahan, Oscar. “22 Clubs, Only 20 Tieups, Add Up to Headache,” The Sporting News, December 8, 1962: 2.
Miller, Norman (United Press International). “Distressed American Association Gives Minors a Splitting Headache,” Passaic (New Jersey) Herald-News, November 29, 1962.
NOTES
1 “‘Save the Minors’ Committee Named; Cronin Included,” Boston Globe, August 3, 1956: 7.
2 Clifford Kachline, “Majors Pick Up $10 Million Tab in Minors,” The Sporting News, December 15, 1962: 5.
3 David Hill, “MLB History: American League Organizes as Major League,” Call to the Pen, January 28, 2017, found online at https://calltothepen.com/2017/o1/28/mlb-history-american-league-organizes-major-league/.
4 “Minor Leagues in Union: Baseball Organizations Combine for Protection,” Chicago Tribune, September 6, 1901: 6.
5 “Minor League Meeting Closed,” Buffalo Courier, October 27, 1901: 28.
6 Baseball-Reference.com, https://www.baseball-reference.com/register/league.cgi. “Major, Minor League Doings in a Nutshell,” Chicago Tribune, December 3, 1937: 27.
7 John Cronin, “Truth in the Minor League Class Restructure: The Case for the Reclassification of the Minors,” SABR Baseball Research Journal, Spring 2013, found online at https://sabr.org/journal/article/truth-in-the-minor-league-class-structure-the-case-for-the-reclassification-of-the-minors/.
8 Lloyd Johnson and Miles Wolff, The Encyclopedia of Minor League Baseball, 2nd edition (Durham, North Carolina: Baseball America, 1997), 347.
9 “Fund Set for Minor Program,” Raleigh (North Carolina) News and Observer, May 22, 1959: 19.
10 “Majors Vote In New Bonus Rule,” St. Lucie (Florida) News Tribune, December 3, 1961: 15.
11 “Frick to Call Player Development Meet,” Oakland Tribune, April 24, 1962: 41.
12 “Majors Earmark Million $ in ‘Save Minor’ Program,” New York Daily News, October 31, 1962: 42. The 12 members of the Major-Minor League Committee were John Galbreath (owner of the Pittsburgh Pirates, chairman of the major-league half), Buzzie Bavasi (general manager of the Los Angeles Dodgers, key figure in integrating the minor leagues in the late 1940s), Chub Feeney (general manager of the San Francisco Giants, went on to be president of the National League, 1970-1986), George Medinger (vice president of the Cleveland Indians), Dick O’Connell (executive vice president of the Boston Red Sox), Ed Doherty (general manager of the Washington Senators, president of the American Association, 1953-1960), George Sisler Jr. (general manager of the Rochester Red Wings of the Class AAA International League, chairman of minor-league half), Dick Butler (president of the Class-AA Texas League), Sam Smith (president of the Class-A South Atlantic League), Jim Fleishman (president of the Class-B Northwest League), Herman White (president of the Class-C Northern League), and Herb Smith (president of the St. Petersburg Saints of the Class-D Florida State League).
13 “Frick to Call Player Development Meet.”
14 “Minor Loop Plan Okayed,” Tampa Tribune, May 19, 1962: 21.
15 Jack Hand (Associated Press), “Majors Vote Changes for Minor Loops,” Bangor (Maine) Daily News, May 19, 1962: 13.
16 Associated Press, “Three Class Minors Seen,” Fort Worth (Texas) StarTelegram, May 19, 1962: 16.
17 Chris Jones, “1962 Winter Meetings: Addition by Subtraction,” in Steve Weingarten and Bill Nowlin, eds., Baseball’s Business: The Winter Meetings: 1958-2016, Vol. 2, (SABR, 2017), found online at https://sabr.org/journal/article/1962-winter-meetings-addition-by-subtraction/.
18 “Leagues Absorb Old Association,” Edmonton (Alberta) Journal, December i, 1962: 43.