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MLB Collective Bargaining Details so far
Posted on 11/30/16 at 9:00 pm
Posted on 11/30/16 at 9:00 pm
All from MLB Rumors.com
Roster Size
In one notable realm, there will be no changes. The sides decided against modifying the active roster rules, Joel Sherman of the New York Post reports on Twitter. Rosters will remain at 25 players, rather than moving to 26, and September roster expansion will not be curtailed.
Luxury Tax Line
Meanwhile, the luxury tax threshold will rise from $189MM to around $195MM in the 2017 season, Sherman further reports (links to Twitter). It’ll then reach $210MM over the five-year span. ESPN.com’s Jayson Stark provides the full schedule of the luxury tax line, via Twitter (as Rosenthal had previously suggested, also on Twitter). Between the $195MM starting point and $210MM max level, the tax will kick in for the intervening years at $197MM (2018), $206MM (2019), and $208MM (2020).
Additionally, per Sherman, the CBA will impose a sixty to seventy percent penalty for teams that spend well above the luxury tax line — i.e., payrolls north of $250MM. Stark adds that teams that greatly exceed the luxury tax threshold can be penalized at up to a 90 percent tax.
Qualifying Offer
The qualifying offer system has been another area of some uncertainty, and it seems there are some final details to work through there. Here’s the latest reporting, some of which appear to be somewhat conflicting:
A source tells Rosenthal (via Twitter) that the sides are “trying to shuffle around [the] loss of [a] first[-round] pick with [a] player getting [a] deal of $50MM or more.” While it’s a bit difficult to know just what that means, it sounds as if draft compensation could be tied to the ultimate price the market puts on a player.
Alternative reports suggest more of a tweak to the current system. First-rounders won’t be sacrificed in signings of QO-declining players, Jon Morosi of MLB Network tweets. These changes will not apply until the following offseason, Morosi notes on Twitter. All teams will stand to sacrifice draft picks if they sign players who declined qualifying offers, Stark tweets, but at varying levels. Organizations that are over the luxury tax line will punt a second and a fifth-round choice, while those who are under the threshold would stand to sacrifice a third-rounder. That would represent a rather monumental change to the qualifying offer system, as only a few organizations in any given year would be at risk of sacrificing a pick. It would also come with some interesting practical impacts, as teams might conceivably seek to drop under the luxury tax line to avoid the necessity of draft compensation, though of course that won’t be of nearly as much importance if first-round picks are in fact taken off the table.
International
There will indeed be a hard bonus cap for international signings, rather than a draft, Stark reports.
Revenue Sharing
The “performance factor” element of the revenue-sharing system will be removed, per Passan (Twitter links). That had functioned as what Passan terms a “revenue-sharing multiplier,” so its removal will likely mean that large-budget clubs are required to pay less into the pool.
Roster Size
In one notable realm, there will be no changes. The sides decided against modifying the active roster rules, Joel Sherman of the New York Post reports on Twitter. Rosters will remain at 25 players, rather than moving to 26, and September roster expansion will not be curtailed.
Luxury Tax Line
Meanwhile, the luxury tax threshold will rise from $189MM to around $195MM in the 2017 season, Sherman further reports (links to Twitter). It’ll then reach $210MM over the five-year span. ESPN.com’s Jayson Stark provides the full schedule of the luxury tax line, via Twitter (as Rosenthal had previously suggested, also on Twitter). Between the $195MM starting point and $210MM max level, the tax will kick in for the intervening years at $197MM (2018), $206MM (2019), and $208MM (2020).
Additionally, per Sherman, the CBA will impose a sixty to seventy percent penalty for teams that spend well above the luxury tax line — i.e., payrolls north of $250MM. Stark adds that teams that greatly exceed the luxury tax threshold can be penalized at up to a 90 percent tax.
Qualifying Offer
The qualifying offer system has been another area of some uncertainty, and it seems there are some final details to work through there. Here’s the latest reporting, some of which appear to be somewhat conflicting:
A source tells Rosenthal (via Twitter) that the sides are “trying to shuffle around [the] loss of [a] first[-round] pick with [a] player getting [a] deal of $50MM or more.” While it’s a bit difficult to know just what that means, it sounds as if draft compensation could be tied to the ultimate price the market puts on a player.
Alternative reports suggest more of a tweak to the current system. First-rounders won’t be sacrificed in signings of QO-declining players, Jon Morosi of MLB Network tweets. These changes will not apply until the following offseason, Morosi notes on Twitter. All teams will stand to sacrifice draft picks if they sign players who declined qualifying offers, Stark tweets, but at varying levels. Organizations that are over the luxury tax line will punt a second and a fifth-round choice, while those who are under the threshold would stand to sacrifice a third-rounder. That would represent a rather monumental change to the qualifying offer system, as only a few organizations in any given year would be at risk of sacrificing a pick. It would also come with some interesting practical impacts, as teams might conceivably seek to drop under the luxury tax line to avoid the necessity of draft compensation, though of course that won’t be of nearly as much importance if first-round picks are in fact taken off the table.
International
There will indeed be a hard bonus cap for international signings, rather than a draft, Stark reports.
Revenue Sharing
The “performance factor” element of the revenue-sharing system will be removed, per Passan (Twitter links). That had functioned as what Passan terms a “revenue-sharing multiplier,” so its removal will likely mean that large-budget clubs are required to pay less into the pool.
This post was edited on 11/30/16 at 9:16 pm
Posted on 11/30/16 at 9:03 pm to tduecen
So owners get to supress salaries by limiting increase in lux tax and harsher penalties.
Posted on 12/1/16 at 7:14 am to tduecen
quote:
Now, the teams that will be hardest hit are those that are over the luxury tax threshold. Jason Stark reports that teams over the luxury tax threshold will forfeit a second- and fifth-round pick and $1 million in international bonus budget space for signing another team's qualifying offer free agent.
Interesting
Posted on 12/1/16 at 7:19 am to tduecen
quote:
In another wrinkle, via Sherman (on Twitter), the league will ban incoming MLB players from using smokeless tobacco, with existing players grandfathered in.
This post was edited on 12/1/16 at 7:23 am
Posted on 12/1/16 at 9:17 am to tduecen
Overall I like what has come from it from what I've read so far. The home field thing is minor but nice because it was so dumb. I think the new measures are all minor steps toward more parity.
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