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Collective Bargaining Agreement

Latest Reactions to Slow-Moving Offseason

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The offseason continues to move painfully slowly. With spring training on the horizon, there’s not much time left for the staring contest between teams and players to break. Indeed, the past week has yielded more news by way of shouting from players, agents and union reps than by way of actual major league signings. We’ve collected some of the reactions from around the baseball community…

  • As one might expect, the colorfully hyperbolic Scott Boras has offered his input on the subject (via Bob Nightengale of USA Today Sports), comparing the market phenomenon to the act of murder. “The difference between an accident and murder is intent,” Boras says. “Teams are intentionally murdering seasons and fans are dying with it.” Boras also says that the biggest issue is competition, adding that losing is only acceptable if there is an actual effort to win.
  • “The list of available free agents could fill out a 25-man roster and contend for a playoff spot,” writes Rustin Dodd of the Kansas City Star. Dodd also includes quotes from Peter Moylan, which provide some interesting insight into the point of view of a lower-tier MLB free agent. Moylan describes his situation in terms of the uncertainty, telling Dodd that the only thing that is a “little frustrating” is the unknown. Moylan’s examples of the unknown include not knowing where he’ll be in two weeks, not knowing where he’ll be playing during the regular season, and the resulting inability to line up housing for either. The 39-year-old righty pitched to a 3.49 ERA across 59 1/3 innings last year for the Royals, and has publicly stated his desire to remain with the team.
  • The MLBPA is “laying the dynamite around itself” with its threats of spring training boycotts and accusations of collusion, writes Ken Davidoff of the New York Post. Davidoff describes Brodie Van Wagenen’s recent statement as a “boiling point of sorts,” and wonders what can possibly be accomplished by all this “saber-rattling.” Davidoff seems to downplay the anger and threats from the union and player representatives, pointing out (by way of recent words from Brandon Moss) that they chose to sign a collective bargaining agreement that rewards tanking and penalizes clubs for spending too much.
  • Tom Verducci of Sports Illustrated opines that the players “bargained for luxury, not labor” in his take on the subject. Verducci also highlights Moss’ words, describing the current CBA as “the deal that stiffened the soft cap created by a luxury tax threshold that hasn’t come close to keeping up with growth in revenues and payrolls.” He adds that the union celebrated something of a “Pyrrhic win” in its prevention of an international draft, which Verducci calls a bluff.
  • The mystery of the bizarre offseason before us can’t be solved by simply crying “collusion,” Ben Nicholson-Smith of Sportsnet.ca writes, drawing attention to multiple factors in this offseason’s pace in a piece that’s definitely worth a full read. Some of those factors include a logjam at the top of the market (perhaps caused by CBA incentives for teams to tighten their purse strings), and the perceived value of youth in baseball.
  • For his part, Cubs GM Jed Hoyer is surprised that he’s headed to Arizona with so much offseason left to go. In an interview with Jesse Rogers of ESPN, Hoyer chalks the hot stove freeze up to something that seems quite simple on the surface: both players and teams feel justified in their positions. “Every team has their internal rankings,” he tells Rogers. “Every team has their evaluations which they will never reveal. Those rankings guide them through the market. Both sides of the market can always move or activate and free things up. To this point, we haven’t gotten there.”

New CBA To Penalize High-Payroll Teams With Lowered Draft Picks

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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.

League, Union Nearing CBA Agreement

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There’s said to be progress in collective bargaining talks, as the owners and union strive to reach agreement — or, at least, avoid a work stoppage — with the current CBA set to expire at midnight. As ESPN.com’s Jayson Stark reports, the league’s ownership has not scheduled a lockout vote, though the owners are on standby in the event that one is required, or if there’s a deal to be confirmed.

Here’s the latest:

  • A deal is close and could be finalized tonight, Rosenthal tweets. The meeting has adjourned with “handshakes all around,” MLB.com’s Richard Justice adds on Twitter.
  • The sides are “close” to hammering out a deal on the luxury tax system, Jon Morosi of MLB Network tweets. That has been seen as one major obstacle. Given the overall movement, whether or not a final agreement is reached tonight, there’s now little chance of a lockout, Tyler Kepner of the New York Times tweets.

Earlier Updates

  • It’s possible, of course, that the sides could simply decide to maintain the status quo while talks wrap up. If they haven’t seen eye to eye on everything, but see a path to a deal, that may well come to pass. In that event, the offseason business of baseball could carry on while the final issues are resolved. A lockout vote would be viewed as a drastic measure — “only if owners felt they were at point of no return” — at this point, per Ken Rosenthal of FOX Sports (via Twitter).
  • We’re waiting to learn more on how things could be shaking out, and it seems there’s still quite a bit of variability in what form the qualifying offer system will take. One possibility, Rosenthal says, is that wealthy teams (i.e., those that pay into the revenue-sharing system) could sacrifice some draft position (say, five spots) if they sign a QO-declining free agent. Meanwhile, low-revenue organizations could sign such free agents without penalty. (Twitter links: 1; 2; 3; 4; 5.)
  • Also under consideration, per Rosenthal (via Twitter), are changes to the international signing system. While it seems that a draft is off the table at this point, it’s possible that teams could face a hard cap on total bonus outlays. Presumably, there would also be some increase in the total spending allotment, though that remains unclear.

Latest On Collective Bargaining Agreement Negotiations

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10:45pm: Rosenthal tweets a quote from someone connected to the CBA talks: “There is very positive dialogue right now. More meetings to come tonight.” 

NOV. 29, 7:04pm: Following Olney’s report that the competitive balance tax is the “last big hurdle” to be cleared, Rosenthal reports (Twitter links) that the owners have proposed forfeiting draft picks as the penalty for going over the luxury tax limit, though the MLBPA is sensitive “sensitive to any adjustment that would cause [the] threshold to act as [a] de facto salary cap.” MLB Network’s Jon Morosi tweets that there’s some growing optimism about a deal being reached before the 12:01am ET deadline on Thursday.

NOV. 28, 7:07pm: Despite the apparent concession from the ownership side on the international draft, the “desired effect” of “mov[ing] talks forward” has yet to occur, Rosenthal adds on Twitter.

6:16pm: The owners won’t insist that an international draft be a part of the next CBA, Ken Rosenthal of FOX Sports reports (Twitter links). There is still disagreement regarding modification to the luxury tax system, he adds; it’s not clear whether the sides are simply haggling over where to set limits or, instead, considering larger changes. Presently, teams are hit with a tax if their payroll exceeds $189MM in a given year, which functions to restrain spending on major league rosters.

5:21pm: Teams may not participate in the upcoming Winter Meetings, according to a report from ESPN.com’s Buster Olney (via Twitter). Club officials, he says, have been given the understanding that they won’t take part in the meetings if the ongoing collective bargaining talks don’t make “sufficient progress.”

This report represents the latest indication that there’s a real possibility of a disruption in the offseason due to the stalled CBA talks. The current CBA expires on December 1, and prior reporting suggests that the league’s owners may consider a lockout depending upon how talks unfold. It’s worth noting that Olney had previously downplayed the potential for problems.

While potential disruption to the 2017 season is still months away from being a concern, a labor stand-off would surely have a significant impact on the way in which the winter signings and trades unfold. Many of the biggest moves take place at baseball’s annual Winter Meetings, which are scheduled this year for December 5-8.

All told, there are several notable upcoming dates of importance, each of which will pressure the sides to come to an agreement. While the league and the MLB Player’s Association seem to be dug in on some matters, there’s also plenty of incentive for both to avoid a work stoppage and find common ground. That’s all the more true given that the issues reportedly still open for negotiation appear to represent a relatively small slice of the game’s growing financial pie.

Among the other topics still under discussion, the possibility of an international draft — which the league has pushed — has drawn strong pushback from the union. Indeed, several Latin American big leaguers reportedly made in-person appearances during talks today, Jeff Passan of Yahoo Sports reports in a series of tweets (all of which can be seen here). While prior reports indicated that the league side was willing to scrap the qualifying offer system in exchange for the ability to institute a draft, the union appears to be taking a hard line on that particular issue.

Quick Hits: Chapman, Encarnacion, Yankees, CBA, D’Backs, Dodgers

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Some items from around baseball as we head into a new week…

  • The Yankees are widely considered the favorites to sign Aroldis Chapman, though not if the closer’s market reaches five years and $100MM, George A. King III of the New York Post reports.  One would think the dollar figure rather than the contract length would be the sticking point for the Yankees, as Chapman (who turns 29 in February) has long been expected to land at least a five-year deal this winter.  MLBTR’s Tim Dierkes predicts Chapman to land five years and $90MM, and would still set a new record high for a reliever contract even if it falls short of nine figures.  (Dierkes also has Chapman signing with the Yankees.)
  • Also from King, the Yankees similarly aren’t interested in a five-year deal with Edwin Encarnacion.  New York has checked in with Encarnacion but also with Carlos Beltran, who would come at a much lower price in both years and dollars.  Several other first base/DH types with lower price tags than Encarnacion have also been speculatively linked to the Yankees as well this offseason.  It’s unclear whether any team would be willing to guarantee five years to Encarnacion, who is entering his age-34 season.
  • If the new collective bargaining agreement expands rosters to 26 players, several general managers speculated to Peter Gammons of GammonsDaily.com that teams could often use that extra man for spot starts.  While not an official sixth starter, teams could call up a spot starter to give extra rest to the rotation or perhaps just one veteran starter in particular.  Another GM speculates that teams could use that extra roster spot to develop an Andrew Miller-esque reliever who can pitch multiple innings.
  • The bulk of Gammons’ latest column examines the challenges Diamondbacks GM Mike Hazen faces with his new team.  One of those issues looks to be improving relations between management and the clubhouse — “players who were Diamondbacks may be unfair when they tell people that the D’Backs are the team that hates players, but it’s the reputation,” Gammons writes.
  • Rookies played a big role in the Dodgers’ NL West title, particularly due to the number of injuries suffered by the team.  President of baseball operations Andrew Friedman tells Baseball America’s Bill Plunkett that his club had a “number of fingerprints” on its success and credits manager Dave Roberts with his deft handling of these young and mostly inexperienced players.  “A great byproduct of the change and shift that we saw this year on the major league side with (Roberts) and his coaches was to be able to provide that soft landing spot, that environment where guys can come up and thrive and not be afraid to compete, to be put in positions to be able to succeed,” Friedman said.  According to Plunkett, rookie players accounted for 21.3% of Dodgers plate appearances and 29.6% of the team’s innings in 2016.

MLB, Union To Continue Negotiating Next CBA

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TODAY: The owners made new proposals in regards to the international draft and the luxury tax during today’s talks, FOX Sports’ Ken Rosenthal reports (Twitter links), though progress is still said to be slow.  Talks will continue tomorrow at union meetings in Dallas, where Rosenthal predicts the negotiations “should intensify.”

SATURDAY: A lockout is still a possibility as the league and the union negotiate the next CBA in advance of Thursday’s deadline, but there are strong hopes it can be avoided after MLB offered to remove the current system of draft pick forfeiture associated with the qualifying offer, Jon Heyman of Fan Rag Sports writes. Such a change would make MLB free agency “the freest free agency in sports,” in the words of one of Heyman’s sources. In return, the league wants the players to agree to an international draft.

Under the current system, if a player refuses a qualifying offer, interested teams must give up a top draft choice to sign him. The players dislike this rule because it reduces the market value of players on the edges of the qualifying offer system — including, in recent years, players like Ian Desmond, Kendrys Morales, Stephen Drew and Nelson Cruz. Recently, players such as Neil Walker, Jeremy Hellickson and Brett Anderson have accepted qualifying offers, receiving less long-term security than they perhaps would have gotten on the open market.

The players also do not like the idea of an international draft, which would affect prospects throughout Latin America. Heyman writes, though, that draft pick forfeiture is considerably more costly to them than an international draft would be, particularly since a significant percentage of international bonuses go to players who don’t make the Majors.

Still, there are other topics that must be resolved, Heyman notes. One issue is the luxury tax threshold — the league has reportedly agreed to increase it from $189MM to $200MM, but the two sides have not agreed on a final number.

FOX Sports’ Ken Rosenthal had previously reported that a lockout was a possibility. Reporting since then from Buster Olney and Jayson Stark of ESPN has suggested that there was reason for optimism that a deal could be completed.

Cafardo’s Latest: CBA, V-Mart, Encarnacion, Cespedes, Chapman, Nats, Marlins

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Major League Baseball’s owners and players might not agree to a new collective bargaining agreement before the Dec. 1 expiration of the current CBA, but a lockout isn’t guaranteed if they don’t, reports Nick Cafardo of the Boston Globe. Instead, business could continue under the soon-to-be old CBA as the two sides keep negotiating toward a new deal, even if doing so takes them through spring training.

Here’s more from Cafardo:

  • Although there are some appealing designated hitter types on the free agent market, teams are showing interest in Tigers DH Victor Martinez, according to Cafardo. Given that the Tigers are aiming to get younger and cut payroll, trading Martinez would seem to make sense, as he’ll turn 38 in December and is owed $36MM over the next two years. However, in addition to his lofty salary, Martinez’s 10-and-5 rights could put the kibosh on a potential deal. The switch-hitter recovered from a miserable 2015 to slash .289/.351/.476 with 27 home runs in 610 plate appearances this past season.
  • There’s a “healthy amount” of interest in free agent first baseman/DH Edwin Encarnacion, a general manager told Cafardo, who notes that a signing is unlikely until there’s clarification on the 2017 luxury-tax threshold. “Normally, teams would be very aggressive in getting both of these hitters signed, but right now you have to stay back a little,” an AL GM said in regards to Encarnacion and outfielder Yoenis Cespedes. FanRag’s Jon Heyman reported Saturday that the league has agreed to increase the figure from $189MM to $200MM in CBA negotiations. That could make big spenders like the Yankees and Red Sox more inclined to chase Encarnacion (and maybe Cespedes in New York’s case).
  • The Yankees, Dodgers and Giants are known to be eyeing free agent closer Aroldis Chapman, and the Nationals have also emerged as a possible destination, per Cafardo. Executives around the majors expect aggressiveness from the Nats this winter, and signing Chapman to what should be a record deal for a reliever would certainly qualify as a bold move. Notably, Washington attempted to acquire Chapman from the Yankees over the summer, but he ended up with the Cubs. The Nationals then picked up Mark Melancon from the Pirates. He’s also a free agent now, leaving the Nats in need of late-game help.
  • Along with the previously reported Twins, the Marlins are among the teams with interest in free agent right-hander Justin Masterson. The low-payroll, starter-needy Fish “are looking to hit the jackpot with a surprise pitcher,” writes Cafardo. The 31-year-old Masterson hasn’t pitched in the majors since an unsuccessful 59 1/3-inning run with Boston in 2015. He threw 54 1/3 frames with the Pirates’ Triple-A affiliate last season and recorded a 4.97 ERA, 5.3 K/9 and 4.31 BB/9. Shoulder and knee injuries have beset Masterson in the past, but he indicated earlier this week that he’s now healthy.

Yankees’ Cashman On CBA, Gleyber Torres

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GM Brian Cashman says the Yankees anxiously await the next collective bargaining agreement, and says that previous CBAs have “crippled” them, writes George A. King III of the New York Post.

“The previous CBAs have really hindered us, so I think the next one is something we’re clearly going to be interested in on how it will impact us over the entire course of the term of the contract,” Cashman says. “In the short term, I don’t think it will affect how we do business in 2017. The last few have impacted us exactly as they were expected to and why it was done the way it was. Lot of teams benefited significantly.”

Cashman is referring to the Yankees’ uncharacteristically quiet approach to free agency last season (when they didn’t sign a single big-league free agent), as well as “a lot of the international markets I’ve been taken out of,” presumably including the Yankees’ restrictions on international bonus spending for 2015 and 2016 after their spending spree in 2014. This winter, the Yankees are expected to spend more heavily on the free agent market than they have in the recent past.

Cashman adds that he is excited about top prospect Gleyber Torres, who the Yankees acquired when they sent Aroldis Chapman to the Cubs and who recently won the MVP of the Arizona Fall League at the tender age of 19.

“When I was out there for the GM meetings, I went to see him play and the buzz among all the baseball people, the scouts and front office execs alike was ’this is the best player in the league,'” Cashman says. “And he was the youngest player in the league, so that’s pretty exciting to hear.”

In the 2016 regular season, Torres batted .254/.341/.385 for Class A+ Tampa. Despite his outstanding .403/.513/.645 showing in Arizona, Cashman says Torres will start the 2017 season with Double-A Trenton. MLB.com currently rates him the Yankees’ second-best prospect, behind Clint Frazier.

CBA Notes: Season Length, Roster Size, Luxury Tax, Int’l Draft

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Both Major League Baseball commissioner Rob Manfred and players’ union executive director Tony Clark expressed optimism last month about reaching a new collective bargaining agreement prior to the Dec. 1 expiration of the current CBA. No deal between the league and the union has come since, but the industry isn’t worried about a shutdown, reports Tyler Kepner of the New York Times. The lack of concern is largely because the next CBA is unlikely to include radical departures from the current one. Instead, the expectation is that the two sides are mostly looking to tweak what’s already in place.

Here’s more from Kepner:

  • Shortening the regular season has garnered consideration during negotiations, but the schedule will remain at 162 games in the next agreement. In order to ease the players’ workload, the league and the union could agree to lengthen the season from 183 days to 187, per Kepner.
  • Susan Slusser of the San Francisco Chronicle reported earlier this month that expanding rosters from 25 to 26 players was a possibility, and that’s likely to come to fruition, according to Kepner. Moreover, 40-man rosters in September will unsurprisingly go by the wayside in favor of a 28- or 29-man limit.
  • The $189MM luxury-tax threshold is set to increase, though it’s unknown how much it’ll rise. That change will have a positive effect on big-spending teams that have been reluctant to exceed the $189MM figure. Bumping the number up from $189MM isn’t ideal for teams that have lesser budgets, of course, but Kepner argues that it’s not necessarily cause for despair. Since the current CBA took effect after the 2011 season, 21 of the majors’ 30 teams have made the playoffs, Kepner points out.
  • Owners continue pushing for the implementation of an international draft, but the MLBPA is “deeply skeptical,” Kepner writes. ESPN’s Buster Olney reported in October that a 10-round proposal was on the table for March 2018.

Latest On CBA Talks On Roster Size

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One key element of the current collective bargaining talks is whether there will be any change to the number of players who can be carried on a roster. Negotiations are entering their final phases with the current agreement set to expire on the first of December.

There has reportedly already been consideration of going from 25 to 26 players on the active roster. (Here’s our story from two weeks back; the reporting came via Susan Slusser of the San Francisco Chronicle.) And that concept is still under discussion even as the time nears for the league and the MLB player’s association to wrap up talks, per Ken Rosenthal of FOX Sports.

There’s little question that the 26th man would be a boon to the player’s union, though MLBTR contributor Ryan Spilborghs has argued that it would be beneficial for teams as well. Balancing the cost of thirty new MLB salaries, sources tell Rosenthal, could come in part from new limitations on the size of the active roster in September.

Currently, of course, organizations can utilize anyone on their 40-man roster during the month of September, as Spilborghs also recently discussed. The new rule under consideration might limit clubs to 28 players for any given game during the final full month of the season, with additional provisions allowing that group to be modified — but not every single day.

It’s easy to see the merit in paring back the strange rule that significantly changes the game beginning on September 1. There likely wouldn’t be much of an impact on the transactional world, and it’s hard to imagine any fans taking issue. Adding a 26th man for the full season, though, might shake things up a bit. It would potentially reduce the exposure of players to serious injury, make it easier for clubs to employ specialized players at the major league level, and make the Rule 5 draft a more feasible means of snaring young talent.

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