Source: MLB players, owners close in on new 5-year labor deal Read more: http://sportsillustrated.c

[TradeAngelos]

If we're working in unfounded generalities, you must be one of those people willing to sacrifice $billions in MLB revenues to the cause of parity.

When an organization has moved revenues from $2B to nearly $8B in a decade or so, you usually don't have calls for revolution. Yes, there are issues with MLB, and from an Orioles perspective one of the most pressing is the imbalance between small and large market teams. But you don't necessarily have to blow up a system that already works well for most teams to get there.

Right now MLB has a system that allows teams to make a profit, but not too much profit (too much, IMO, defined by not having some teams make massive, $100M profits while others can't meet their budget obligations no matter what, as happens in the NHL and NBA.) MLB has a system that allows expenditures to roughly match payroll. Once you start limiting what teams can spend (on payroll, amateur acquisition, whatever) without addressing revenue imbalances, then you end up with some teams that make crazy profits while others still have to spend nearly 100% of revenues to have any hope of competing. The big market teams making $100s of millions in profits will find ways to exploit that asset for on-field gain.

Capping various expenditures may somewhat level the playing field between small and large market teams, but you're not going to really fix anything until you address the fact that the Yanks bring in half a $billion or more a year, and the Rays are lucky to bring in 20% or 25% of that. Just capping or slotting the draft, or including everyone in the draft will be even worse, in that it takes away a lower-cost avenue for teams like the O's or Pirates to acquire talent, and makes things like very expensive MLB free agency more important.

Really?

A worldwide draft is a "significant possibility" by 2014, according to Yahoo's Jeff Passan.

Also in 2014 if there is no international draft the penalties increase...

http://www.mlbtraderumors.com/2011/11/cba-details-luxury-tax-draft-.html

Each team faces an equal spending limit for 2012-13. Following the 2012-13 year, clubs will face different spending restrictions depending on their winning percentage (teams that win less can spend more). Teams that exceed the spending limit from 2012-13 and 2013-14 face a 75% tax if they exceed the limit by up to 5%. If they exceed the limit by 5-10%, they pay the 75% tax and lose the right to provide more than one player with a bonus worth more than $500K in the next signing period. If they exceed the limit by 10-15%, they face a 100% tax and are prevented from signing any player for $500K or more in the next signing period. If teams exceed the limit by 15% or more, they face a 100% tax and lose the right to spend $250K on any player in the next signing period.

From 2014-15 on penalties will increase if a worldwide draft isn't in place.

That sure sounds like something that was put in there to make sure an international draft DOES take place before 2014. But what do I know.

[CA-ORIOLE]

Maybe a better way to look at it would have been 10 lowest W/L % among Big League and Minor League affiliates.

Yeah, too bad they don't have a reward for incompetence.

[JTrea81]

This now makes free agency seem more attractive than building through scouting and development as the margin for error is that much greater for amateur and international signings and the penalities are less for going after FAs. Established talent will now be seen as a better investment, so I would wonder if the Orioles are going to alter their course a bit as overslot signings were a huge part of their talent acquistion.

It will also be interesting to see the price tag on free agents like Pujols, Fielder, Reyes and Wilson.

[erb8472]

This now makes free agency seem more attractive than building through scouting and development as the margin for error is that much greater for amateur and international signings and the penalities are less for going after FAs.

The money ratio is still not equal to that of free agency. It's pretty obvious a large FA contract that doesn't work out would hamstring a small market team way more than paying a penalty on a draft pick.

[JTrea81]

The money ratio is still not equal to that of free agency. It's pretty obvious a large FA contract that doesn't work out would hamstring a small market team way more than paying a penalty on a draft pick.

But if you can't get the high school/college player to sign for X dollars, how do you get the talent in your system?

Bundy would have never signed with us had this been in effect IMO.

[erb8472]

But if you can't get the high school/college player to sign for X dollars, how do you get the talent in your system?

Bundy would have never signed with us had this been in effect IMO.

We don't even know what the projected slotting system is for Draft Pick salaries.

[Can_of_corn]

But if you can't get the high school/college player to sign for X dollars, how do you get the talent in your system?

Bundy would have never signed with us had this been in effect IMO.

Why wouldn't he have? It is not like his situation would have been appreciably better after three years of school. The real loss is folks like Bubba Starling that can choose a different sport.

[Nigel Tufnel]

But if you can't get the high school/college player to sign for X dollars, how do you get the talent in your system?

Bundy would have never signed with us had this been in effect IMO.

What would his alternative be, though? Go to college and get the same money but later and with an injury risk?

[33rdst]

What would his alternative be, though? Go to college and get the same money but later and with an injury risk?

I agree, I don't think it will effect the top talent but I don't think we would have signed Delmonico if this system were in effect. He'd be playing in the SEC somewhere.

[Sports Guy]

We don't even know what the projected slotting system is for Draft Pick salaries.

Right...Trea, this is kind of important, don't you think?

And free agency will never be a good way of doing things.

[Can_of_corn]

We don't even know what the projected slotting system is for Draft Pick salaries.

Right...Trea, this is kind of important, don't you think?

And free agency will never be a good way of doing things.

From Passan on Twitter:

The slots for the Nos. 1-4 picks in the draft are going to be $7.2M, $6.2M, $5.2M and $4.2M. Teams are not, however, required to spend that.

[JTrea81]

Right...Trea, this is kind of important, don't you think?

And free agency will never be a good way of doing things.

Well there will also be no major league deals allowed as well...

[Sports Guy]

Well there will also be no major league deals allowed as well...

Doesn't matter...those guys are going to be in the majors quickly anyway.

And, as CC posted, the slot prices are going to be just fine.

[mweb]

Jonah Keri doesn't like it.

The biggest CBA change places severe restrictions on teams' ability to spend premium dollars on the amateur draft and international signings. So while the deal's cheerleaders trumpet the 21 years of uninterrupted labor peace that we'll have by the end of the five-year deal, baseball risks harming the game in two major ways:

? Smart teams in non-elite markets could fall further behind.

? Premium young athletes could become more motivated to take up basketball, football, soccer ? basically any sport that isn't baseball.

Neither does Keith Law. Insider.

The net result here is a big negative for the sport -- not enough to counteract the benefit of another five years without a labor stoppage, but enough of a negative to hurt the sport in the long run. I would hope Bud Selig's successor as commissioner is open-minded enough to re-evaluate this CBA's provisions for limiting spending on amateur players after we see its effects over the next five years.

[mweb]

"Teams in the ten smallest markets and with the ten lowest revenues will enter a lottery for six additional first and second round picks, according to Bill Shaikin of the LA Times (on Twitter)."

They are only eligible if they do not exceed their signing bonus pool.