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The collective-bargaining agreement did not expire on Dec. 1, 2016 (Updated)


weams

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http://www.forbes.com/sites/maurybrown/2016/11/30/breaking-down-mlbs-new-2017-21-collective-bargaining-agreement/#79c054ec42a1

 

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Length of time on the DL: The AP also reports that minimum time on the league’s disabled list will go from 15 days to 10.

Luxury Tax: Thresholds jump from $189 million in the last agreement that ended in 2016, to $195 million in 2017; $197 million in 2018; $206 million in 2019; $209 million in 2020, and; $210 million in 2021.

Luxury Tax penalties: A new “super spenders” tax rate will be implemented for clubs that break the threshold in consecutive years. According to Joel Sherman of the New York Post and MLB Network, the tax rate could reach 60-70% for those clubs that approach the $250 million total player payroll range. The rate is clearly designed to slow the Yankees, who have broken the threshold every year since the Luxury Tax was implemented, and the Los Angeles Dodgers who have seen the league’s highest payrolls in the last few seasons.

 

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  • First-round picks will no longer 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.
  • Importantly, players will no longer be able to receive more than a single qualifying offer, Rosenthal reports (Twitter links). Additionally, a team whose QO-declining player signs elsewhere will only receive compensation if that player signs for $50MM or more, and the draft compensation will be dependent upon the market size of the team that loses a free agent.
  • All told, the above changes promise to represent a rather monumental shift in the function of the qualifying offer system. It will clearly hurt free agents less, and the reduced draft compensation will likely make it slightly more likely that veterans end up being traded in the season before they hit the open market. Whether less players will be tagged with QOs remains to be seen; though there’s less to be gained for teams, there’s also less of a disincentive for players to enter free agency.

International

There will indeed be a hard bonus cap for international signings, rather than a draft, Stark reports. It will only be about $5MM per team, he adds on Twitter, which seems likely to suppress international spending.

Cuban players who are at least 25 years of age and have six years of Serie Nacional experience will be exempt from these limitations, Morosi tweets. (It is important to remember, too, that the flow of Cuban talent will likely change in upcoming years; also, it’s not clear whether players from other countries will continue to be exempt from these limitations.)

Other

  • 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.
  • The Athletics “will be phased out as a revenue-sharing recipient over the next four years,” Rosenthal adds (via Twitter).
  • To accommodate additional off-days, meanwhile, the league will kick off the season in the middle of the week beginning in 2018, per Rosenthal (via Twitter).
  • Some of those days could go toward international marketing efforts. MLB intends to put on regular season games abroad as soon as 2018, Morosi tweets, with London and Mexico the most likely targets. The CBA is expected to accommodate that new addition.
  • In another wrinkle, via Sherman (on Twitter), the league will ban incoming MLB players from using smokeless tobacco, with existing players grandfathered in.

 

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http://www.si.com/mlb/2016/12/01/mlb-avoids-lockout-new-cba-deal?xid=socialflow_twitter_si

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The other notable concession comes at the hands of international prospects. Under the former CBA, teams were given a bonus pool from which they could spend on international players under 23 years old with fewer than three years of professional experience. Teams that exceeded their allotted bonus pool—which last year was in the range of $2–$5 million per team—were, depending on how much they had spent, penalized with taxes and by being barred from handing out individual bonuses larger than $300–$500,000 over one or two signing periods.

 

Those punishments did little to nothing to stop certain teams from blowing far past their allotments to add either as many top-rated amateurs from that year’s period as possible (as the Yankees did in 2014, when they inked nine of the top 25 prospects available for $14 million total in bonuses) or the best available player (as the Red Sox did in ‘15 when they signed Cuban infielder Yoan Moncada, then 19, to a $31.5 million bonus). That level of spending prompted the owners to call for an international draft in the name of fairness across the league, though in reality, any institution of a draft on amateur players is first and foremost about removing a player’s agency in order to depress his salary and gain cost certainty.

 

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On 11/24/2016 at 8:52 PM, sportsfan8703 said:

As O's fans, we really should be rooting for the international draft.  Right now we're just not active enough.  

Owner have appeared to have caved on this issue:

http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/maurybrown/2016/11/28/mlb-owners-drop-international-draft-in-effort-to-get-new-cba-done/&refURL=https://www.google.com&referrer=https://www.google.com

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On 2/14/2016 at 3:24 PM, weams said:

The Bowie Baysox lists their business as under 50 employees. Several of which I know. And believe have six figure incomes.

 

On 2/14/2016 at 3:26 PM, weams said:

The Frederick Keys suggest they also have between 11 and 50 employees.

Yet, both teams also has interns and people working free or next to nothing.

If they were truly losing money year after year, they would close the doors.

This is nothing more than a paper loss, for the accountants can use for tax purposes.

Its all smoke and mirrors, much like Hollywood can make billions on a movie and play with the figures and widdle that down to nothing.

IMO

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