Major League Baseball and the players union came to an agreement on the league’s new collective bargaining agreement on Thursday. The new CBA ends a 99 day lockout which saw Spring Training as well as the first few series of the year cancelled as negotiations dragged on.
At play were a variety of factors, some financial, some relating to job security, which ultimately culminated in the following parameters being signed off on by both sides:
-Eliminate direct amateur draft-pick compensation, pending an agreement on an international amateur draft.
-For a free agent who had spent the entire season with 1 team, there would would be four compensation tiers:
— $25 million in guaranteed salary or $18 million AAV
— $55 million or $23 million AAV
— $100 million or $30 million AAV
— $150 million or $40 million AAV
No changes to the salary arbitration process.
A new pre-arbitration bonus pool established for those not yet eligible for arbitration. Players will split $50 million, which will count equally among all 30 MLB teams for the luxury tax. Allocation based on WAR determined by a management-union committee, appearances on an all-MLB team and recognition such as best position player, best pitcher and best rookie split among 100 players.
According to a document released today, “A full year of major league service will be credited to players who finish first or second in Rookie of the Year voting in each league by the Baseball Writers’ Association of America, as long as they are among the top 100 prospects and did not spend the full season on the big league roster. The top prospects who finish top three in Rookie of the Year or top five in Cy Young or MVP earn teams additional draft picks. The union has the abliity to eliminate this provision during the agreement.”
Luxury taxes, which were a point of contention in negotiations boiled down to:
-1st penalties rises to $230 million from $210 million in 2022, followed by $232 million 2023, $236 million in 2024, $240 million in 2025 and $242 million in 2026. -2nd penalties remain at $20 million above the 1st, the 3rd $40 million above the first and a new 4th level at $60 million above the first.
-Penalties for exceeding the first 3 levels remain the same. In terms of taxes, a 20% tax will be enacted on first-time offenders, 30% for exceeding in consecutive years and 50% for exceeding in 3+ consecutive years.
-The amater draft will see a draft lottery instituted for the top 6 selections including non-postseason teams. However, teams receiving revenue sharing are ineligible to participate in 3+ consecutive years.
-Minimum salaries will rise from $570,500 to $700,000in 2022, $720,000 in 2023, $740,000 in 2024, $760,000 in 2025 and $780,000 in 2026.
-The playoff field will expand from 10 to 12 teams featuring three division winners and three wild card teams in each league.
-The top two division winners in each league get first-round byes, while the remaining four qualifiers will play best-of-three game wild-card series. The third division winner will be the highest seed in that group, with other clubs sorted by their win-loss record. A major change will see the top seeds in each matchup host the entire series.
-Universal DH has been adopted by both leagues
-The amateur draft has been reduced from 40 rounds to only 20.
-There will be the addition of uniform and helmet advertising patches to create additional revenue for the league.
-MLB has proposed a 20 round international draft with slot values, covering residents of the U.S, Canada and Puerto Rico.
-Another major on-field rule change includes the addition of a 14-second pitch clock with no runners, and a 19-second pitch clock with runners on base. There will also be limits on defensive shifts and use of larger bases, can be made with 45 days’ notice by a committee of six management officials, four union representatives and one umpire.
While both sides ultimately gave in on several issues, the fact remains that the season was salvaged and baseball fans can once more expect to see the boys of summer in the field once more. The current agreement is five years in length.