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MLB: CBA agreement lowers draft pick based on high spending
Posted on 7/29/17 at 9:27 am
Posted on 7/29/17 at 9:27 am
quote:
MLB’s new Collective Bargaining Agreement contains a previously unknown detail that could potentially affect teams that spend heavily, Baseball America’s J.J. Cooper writes. In addition to the luxury tax, the CBA includes two surcharge thresholds that could cost big spenders extra money and that could even lower their top draft picks.
The financial details of the surcharge thresholds were previously known. If a team spends above $217MM in 2018, it will receive an extra 12% tax in addition to the usual 20%, 30% or 50% luxury tax. If a team spends over $237MM, it will receive an extra 42.5% or 45% surcharge tax.
Beginning in 2018, there will be an extra penalty for teams in that second category, Cooper notes. A team that spends above $237MM will also have its top draft pick lowered ten spots, unless that pick is in the top six, in which case the team’s second pick will be lowered ten spots.
As Cooper points out, the new rule could be a significant deterrent to teams hoping to be among baseball’s biggest spenders, since teams are generally quite protective of early-round draft picks. The Dodgers, for example, have had payrolls above $237MM for the past several seasons. Under the new system, they would pay a very significant penalty for spending so heavily. Cooper notes that a $260MM payroll in 2018 would cost the Dodgers over $50MM in luxury tax, plus the lowered draft pick.
How will this change FA spending as teams don't want to commit X amount of dollars to one or two players knowing they get lower picks. Teams like the Yankees, Dodgers, Red Sox, etc could be impacted now. Teams like the Cubs and Astros in the future as they have a lot of talented young kids who will be receiving new mega contracts in the future.
Posted on 7/29/17 at 9:37 am to tduecen
I feel like the Yankees and Dodgers will not change a thing.
Posted on 7/29/17 at 11:11 am to tduecen
They couldn't have given a 3 or 4 year break in period? So much for Detroit shedding even a single bad contract at the deadline...
Posted on 7/29/17 at 11:35 am to tduecen
Tony Clark is spectacularly bad at his job. Marvin Miller must be rolling in his grave. I can't fathom how the players association thought a former player would be a better choice than a labor lawyer.
Posted on 7/29/17 at 11:49 am to tduecen
Good thing the Astros will never be close to worrying about this
Posted on 7/29/17 at 6:16 pm to tduecen
I'm not a fan of how MLB penalizes teams by withdrawing draft picks for signing certain free agents.
Realistically a team could loose their 1st Rd pick by signing a Free Agent, then get their 2nd lowered based on salary.
What a joke. Just put in a salary cap.
Realistically a team could loose their 1st Rd pick by signing a Free Agent, then get their 2nd lowered based on salary.
What a joke. Just put in a salary cap.
Posted on 7/29/17 at 6:19 pm to Bumble Bee
No hard salary cap. Up penalty, but raise the luxury tax number. That's my vote.
Posted on 7/29/17 at 6:32 pm to tduecen
(no message)
This post was edited on 4/15/23 at 5:10 am
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