When Philadelphians awoke yesterday morning and opened their copies of the Daily News or Inquirer, many were surprised to see that the Phillies didn’t offer arbitration to Jaime Moyer or Pat Burrell. Some people reacted angrily, thinking it meant that two key cogs on the 2008 World Championship team would not be returning, some were frustrated, and some just didn’t care.

I myself was surprised. While I didn’t take the angry road, I thought it was the first stupid move of the Ruben Amaro Era. I figured Moyer would return regardless, and other teams might shy away from him if it meant sacrificing a first round draft pick for a 46 year-old pitcher. As far as Burrell, my assumption was that he’ll get the multi-year deal he’s looking for and given his age the odds of him accepting arbitration would be remote. Even if the Phillies have no intention of re-signing him (which has become obvious), they would at least receive two high draft picks as compensation.

After thinking about it some more, I finally understood why arbitration wasn’t offered to these players. With the state of the struggling economy, even multi-million dollar sports franchises are on a budget and have to protect themselves from excess spending.

Let’s look at the cases of Moyer & Burrell and why arbitration was not offered.

The Phillies have had ongoing negotiations with Moyer. Depending what media source you are reading, the hold up is Moyer wants a multi-year deal and the Phillies are offering only one year. While a multi-year deal will most likely come to pass, say the Phillies are offering Moyer one year at $7 million; roughly a raise of $2 million from his 2008 salary. Now say the Phillies do not budge on one year, but arbitration is on the table. Moyer can accept the arbitration and submit a figure for $9 million. Well instead of the Phillies negotiating with Moyer and working a deal out, it goes directly to a third party to decide. Given the fact Moyer is a 22-year veteran who led the Phillies in wins last season (16), there’s a good chance the Phillies will lose that arbitration hearing. Financially it makes more sense for the Phillies to give Moyer a two-year deal with a lower annual salary, then one year at a higher rate.

Burrell is a different story. Burrell, like a lot of players, is looking for a big multi-year deal. He’s coming off a season where he just made over $14 million, and behind Manny Ramirez and Mark Teixeira is the best free agent hitter. Odds are he’ll get the contract he wants, but with the unsettling economy a lot of players aren’t going to get the money they are looking for. It might make sense for Burrell to accept arbitration and play one more season in Philadelphia, then hit the free agent market next offseason with hopes the economy is improved and teams are again freely spending. An arbitrator is not going to give Burrell a decrease in pay, meaning Burrell would be on payroll for upwards of $17 million for the season. That simply isn’t in the Phillies budget.

Even with Burrell’s 2008 salary being shed from the payroll, the team’s payroll is going to go up. With 10 players up for arbitration heavy raises are due. Another thing to factor in when it comes to Burrell is the Phillies want to give an extension to Ryan Madson and Jayson Werth (both free agents after the 2009 season), and buy out the arbitration years for Cole Hamels. Should Burrell return with his hefty salary, this will not happen.

Don’t get me wrong. The Phillies franchise isn’t hurting for money. They made plenty of money with last season’s title run, but there’s no guarantee that they will make that type of money this season. Fans will not be spending what they did last season. Sure, fans are still going to buy tickets and Citizens Bank Park might still be filled nightly, but maybe they will only buy two beers instead of three. Instead of buying two Schmitters, they’ll buy a couple hot dogs. Fans won’t be so ready to buy a new hat in the Majestic Clubhouse Store. They’ll realize last years hat isn’t too dirty, and is still in good shape (besides, dirty hats have character). I think you see my point. In this economy every dollar counts, so fans will cut corners when attending the games because it’s more important to have a little money in the bank “just in case”, instead of living like there’s no tomorrow.

This isn’t just a Philadelphia thing. Look at some of the names that weren’t offered arbitration. Bobby Abreu, Andy Pettitte, Kerry Wood, Edgar Renteria, Adam Dunn, Joe Beimel, & Randy Wolf all weren’t offered arbitration. Around the league, all teams (even empty pocket clubs like the Yankees), are forgoing potential draft picks in order to keep their payroll in order. The potential ends don’t justify the means.

It’s easy to think that fat cat owners are just being cheap by not spending their way to a World Series title, but that’s an ignorant way to look at things. A recession doesn’t just affect the Average Joe like you and I but multi-million dollar athletes and sports franchises as well. It will be interesting to see how the baseball’s offseason continues to unfold.