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Collective Bargaining Agreement

MLBPA Organizes “Fully Staffed” Training Facility For Players

By Anthony Franco | February 28, 2022 at 3:46pm CDT

The Major League Baseball Players Association has organized a “fully staffed” stadium and training facility in Arizona for players to work out during the course of the lockout, reports Robert Murray of FanSided (Twitter link). Derrick Goold of the St. Louis Post-Dispatch reports (on Twitter) that the union has interest in arranging a similar facility in Florida.

That the MLBPA has set up alternative training options for players unable to access team facilities is the latest indication of what has become apparent — there’s little reason to believe a new collective bargaining agreement is imminent. The league’s imposed deadline for agreeing upon a new CBA without canceling regular season games is today, and MLB has informed the union of their willingness to scrap a month’s worth of regular season action.

So long as the lockout drags on, players on 40-man rosters will remain unable to have contact with team personnel or to access club facilities. Plenty of players work with independent trainers even during typical offseasons, and it seems likely many will continue to stay in shape on their own.

That said, the union’s arrangement of an operational stadium and facility (and apparent desire to create a second on the other coast of the country) provides players with another option. It’s the latest union effort to bolster solidarity and willingness to continue to wait out the work stoppage. Of greatest import as the threat of lost game checks looms larger by the day is a strike fund compiled by the MLBPA’s withholding of licensing revenue over the past few years in anticipation of a potential lockout.

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MLB Reportedly Indicates Willingness To Miss A Month Of Regular Season Games

By Steve Adams | February 28, 2022 at 1:18pm CDT

MLB’s self-imposed deadline to reach an agreement with the Players Association is today, and Evan Drellich, Ken Rosenthal and Fabian Ardaya of The Athletic report that the league took a “more threatening” tone to the MLBPA today and voiced a willingness to miss a month’s worth of regular-season games (Twitter link). The first meeting between the two parties today lasted only 40 to 45 minutes, tweets Michael Silverman of the Boston Globe, though the expectation is that negotiations will continue throughout the day.

The players have, unsurprisingly, taken that as a clear threat, tweets ESPN’s Jeff Passan, although there’s been no indication to this point that the union’s solidarity has begun to wane. The players have generally taken an exceptionally united front, even in the wake of what was seen as a discouraging counterproposal from the league late last week. There’s been little expectation that the league and union would be able to avoid the “disastrous outcome” of canceled regular season games (as described by commissioner Rob Manfred himself), so the only notable component of that threat is the number of games the league is willing to miss.

The Associated Press estimates that each day of canceled games would result in a collective $20.5MM of missed salary for the players, although it’s worth emphasizing that the union has envisioned just such a hardline tactic from the league for years and has been stockpiling funds to weather this type of storm. MLBTR’s Tim Dierkes reported over the weekend that the league’s strike find is “exponentially” larger than it has ever been (Twitter thread). The MLBPA has been holding back full licensing revenues for years to safeguard against this type of scenario, and the players also spun their licensing department into a separate company, MLB Players Inc.

In doing so, the players afforded themselves the ability to take equity in other companies. Jared Diamond of the Wall Street Journal profiled MLB Players Inc.’s deal with Fanatics over the summer, and they’ve also taken an equity stake in OneTeam Partners. The result is a considerable increase in the union’s funds, and while an exact dollar amount isn’t known, there are a couple pieces of information that can provide relevant benchmarks. An Associated Press report earlier this month indicates the union had as much as $178.5MM at year-end in 2020. An LM-2 Form filed to the U.S. Department of Labor suggests the number was $171.4MM for the 2020 calendar year. Either figure is dated by now, and the size of the fund only figures to have grown.

Notably, players can apply for monthly stipends in the absence of collecting their salaries. The union had provided a pair of $5,000 stipends for February and March, and Drellich and Rosenthal report that the figure will jump to $15,000 beginning on April 1 (when the regular season would be underway). Not all players will apply for that stipend, of course, but in theory even if they did, the 1200 stipends would cost the union a total of $18MM. Add in a pair of (again, theoretical) $6MM payouts for February and March, and it still only taps into $30MM of the union’s funds. Realistically, even based on the 2020 numbers and not accounting for 2021 licensing revenues, the union likely has more than enough capital to make it through the whole season paying out those stipends.

While it’s true that the sport’s biggest stars won’t bat an eye at a $15,000 monthly stipend and may not even file to collect it, that figure is crucial for the union members on the lower rung of the pay scale. Consider players who were just added to 40-man rosters over the winter and those who’ve not yet solidified themselves as big league regulars. Those players could well be looking at spending much of the season in Triple-A, and the $15,000 stipend would largely account for that minor league salary — in some cases, with Double-A and Class-A players who’ve been added to the 40-man roster over the winter, the stipends may even exceed their would-be minor league salaries.

The prospect of lost salaries doesn’t sit well with the union, but the game’s star players who are on lengthy multi-year contracts can surely weather the loss, and those who are most vulnerable are generally taken care of via the monthly stipends. There’s an undeniable middle class who’d be getting squeezed — pre-arbitration players who are solidified on the MLB roster — but those players are among the ones the union is fighting for most ardently, insisting upon increases in minimum salary and pushing for earlier paths into arbitration. Broadly speaking, there’s good reason to believe that even amid the loss of salaries, MLBPA solidarity is likely to remain strong.

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Owners, Players Meet For Extended Negotiating Session; More Talks Planned For Monday

By Mark Polishuk | February 27, 2022 at 11:16pm CDT

Representatives from the owners and the MLB Players Association met today for an extended series of talks, a day in advance of the league’s self-imposed deadline to avoid the cancellation of regular-season games.  More negotiations are scheduled for Monday at 9am CT, following multiple sessions today that took place over almost a six-hour time period.

This marks the seventh consecutive days of negotiations between the two sides, as the clock continues to tick towards both the owners’ February 28 deadline and the start of the regular season on March 31.  Some Spring Training games have already been canceled by the lockout, and if a new collective bargaining agreement was reached by tomorrow, teams would face a whirlwind of a month consisting of both an abbreviated Spring Training, and essentially three months of lost offseason business crammed into roughly a four-week window.

Given both the lack of progress and some open frustration emerging during yesterday’s talks, it seems like a longshot that a new CBA will actually be struck by tomorrow.  As Chelsea Janes of The Washington Post notes, the unofficial nature of the owners’ February 28 deadline means that it could be pushed back if there is actual movement towards an agreement, and the players are likely to make such a case if some noteworthy progress is made tomorrow.

A league official told multiple reporters (including The Boston Globe’s Michael Silverman) that today’s talks were “productive,” as the two sides discussed both core economic issues and other CBA items not directly related to economics.  However, the league and the MLBPA are still “far apart” on many of these issues, according to USA Today’s Bob Nightengale (Twitter links), and today’s talks included “a lot of hypotheticals” under discussion and no actual proposals from either side.

One detail from the league’s side relates to the luxury tax threshold, as The Athletic’s Evan Drellich and Ken Rosenthal report that the owners have “indicated willingness” to raise the levels of the Competitive Balance Tax thresholds beyond their past offers.  It wouldn’t be a big raise, however, past the $214MM that the league submitted yesterday as the initial tax threshold.

Past reports indicated that the owners’ offers to eliminate the qualifying offer (and thus eliminating the draft-pick penalty for teams who signed a QO-rejecting free agent) was linked to the CBT negotiations, specifically with the league looking for higher taxation rates for teams who exceed the CBT tiers, according to Drellich/Rosenthal.  Presumably, owners see the elimination of the qualifying offer as a significant enough concession to counter the MLBPA’s demands for much higher luxury tax thresholds, though the union clearly doesn’t see the two matters as a worthwhile trade-off.

The topic of an expanded postseason has also been a key part of CBA talks, as MLBTR’s Anthony Franco explored back in December.  With the owners eager for more teams (and thus more games and more TV revenue) in the playoffs, the MLBPA has been trying to leverage this desire into making gains on other economic issues.  Most recently, the expanded playoffs also factored into the February 28th deadline, as the union has said that they won’t agree to a larger postseason field whatsoever if the owners withhold pay due to canceled regular-season games.

Rosenthal (Twitter links) has some details on the MLBPA’s offer for a new playoff format, which includes an increase in the number of postseason teams from 10 to 12.  The owners have been pushing for a 14-team postseason, though in both 12-team and 14-team scenarios, the union’s offer includes the concept of a “ghost win” in the first playoff round as a reward to teams who win their division.  For example, a division-winning team would only have to win one of the first two games of a first-round series in order to advance, while the wild card opponent would have to win both contests.

In short, the idea would to incentivize winning a division title, which would theoretically entice teams to spend more on player salaries in order to be more competitive.  The MLBPA has seen the concept of a larger playoff field as a possible drag on spending, as teams have less urgency or a bigger margin for error in reaching the postseason.  The league’s 14-team offer did propose awarding a first-round bye to the teams with the best records in the AL and NL, and the other four division winners would have the benefits of both hosting the entire wild card series in their home ballpark, and also choosing which of the wild card teams they’d want to play.

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Latest CBA Talks Lead To “Hostile” Meeting Between Players, Owners

By Mark Polishuk | February 26, 2022 at 11:21pm CDT

7:19PM: The MLBPA and the league have agreed to resume talks at noon CT on Sunday, according to multiple reports.

4:39PM: Today’s negotiating sessions between the league and the MLB Players Association have concluded for the day, after a pair of separate meetings between the two sides.  After each group conferred privately for an extended period of time, MLBPA reps presented a new proposal to the owners during a 15-minute session.  The ownership group then took time to mull over the offer before another meeting with the players that lasted roughly 45 minutes.

The union’s proposal was a “comprehensive” offer that addressed several core economic issues, according to ESPN’s Jeff Passan and Jesse Rogers (Twitter links).  Perhaps most importantly in terms of finding common ground on a new collective bargaining agreement, the MLBPA is now “backing significantly off” some of its most noteworthy asks in previous offers.  This includes changes to the players’ previous demands about the luxury tax, an expansion in Super Two eligibility, and cuts to the amount of revenue-sharing funds allocated to smaller-market teams.

Despite these concessions, the owners still “reacted badly” to the latest union offer, The Athletic’s Evan Drellich reports.  This led to an “outraged” reaction from the players and a “hostile” tone in the second meeting between the two sides.  As per Chelsea Janes of The Washington Post, the “players are currently considering walking away from the table” altogether, rather than take part in meetings that were slated for tomorrow and Monday. 

As reported by ESPN’s Enrique Rojas (Spanish-language link) and The Associated Press, the MLBPA is now seeking to expand Super Two eligibility to 35% of all players who have between two and three years of service time.  This represents a major decrease from the players’ previous ask of 75% of all players within that service-time window, and yet apparently it isn’t enough to change the owners’ stance.  The league has been steadfast in refusing any expansion to the Super Two structure — in the last CBA, the top 22% of players with between two and three years of service time received an extra year of arbitration eligibility.

Likewise, the league has refused any discussion of changes to the revenue-sharing structure.  The union initially sought a $100MM cut in revenue-sharing funds, and later dropped that demand to $30MM.  Today’s proposal altered that number further, as teams receiving revenue-sharing wouldn’t lose any money, but would still be incentivized to increase local revenue with the offer of extra money made available from MLB’s central fund.  However, the owners are still not willing to budge whatsoever on the topic.

Discussions about the competitive balance tax have at least led to some back-and-forth negotiations, albeit without much progress.  The players made a $2MM reduction for each of the second, third, and fourth years of luxury tax thresholds, breaking down the numbers as follows: a $245MM tax number in 2022, $250MM in 2023, $257MM in 2024, $264MM in 2025, and $273MM in 2026.

The league made only one change to its base tax thresholds, with a $1MM increase to the second year of the CBA.  The owners’ proposed luxury tax thresholds are $214MM in 2022, $215MM in 2023, $216MM in 2024, $218MM in 2025, and $222MM in 2026.

In regards to the penalties for exceeding those thresholds, Major League Baseball again made only slight adjustments from its previous offer.  In today’s proposal from the league, teams exceeding each of the three levels for the first time would pay a 45% tax on the overage of any dollar spent between $214MM-$234MM, a 62% tax on overages from $234MM-$254MM, and a 95% tax rate on the overage for anything spent beyond the $254MM mark.  Previously, the league wanted respective tax rates of 50%, 75%, and 100% for each of the three thresholds.

These are obviously still sizeable jumps over the overage tax rates in the last CBA (20%, 32%, and 62.5%), and the league has compounded the penalty by asking that teams that surpass the second and third tiers lose draft picks.  The MLBPA has been adamantly against the owners’ luxury tax asks, viewing the demands as essentially the creation of an unofficial salary cap.

As reported yesterday by Drellich and Ken Rosenthal, the league has been looking shorten the amount of time required before unilateral on-field rule changes can be imposed.  The previous CBA had a one-year grace period between a league’s proposal and (whether the union agreed to the rule changes or not) the implementation of said new rules, though the owners are now looking for a grace period of only 45 days.  The MLBPA has been resistant to this shorter window of time, and the league needs the players’ approval in the next CBA to agree to the owners’ ability to implement unilateral rule changes of any kind.

Returning to the issue of service time, the league has agreed that players who finish first or second in Rookie Of The Year voting will receive a full year of service time.  (Derrick Goold of the St. Louis Post-Dispatch was among those to report the news.)  This counts as a minor win for the players, even if the MLBPA has been looking at a WAR-based formula for multiple players who excel in their rookie seasons to receive service time.  The league had been looking instead address the service-time manipulation issue by offering extra draft picks to teams who have players with top-three finishes in the ROY/MVP/Cy Young voting during their first three arbitration-eligible seasons.

If there is any other minor glimpse of good news from today’s meetings, one CBA issue has apparently been settled.  The owners and players agreed to a new rule on minor league options, as USA Today’s Bob Nightengale reports that players can now be sent to the minor leagues a maximum of five times per season.

Unfortunately, progress has apparently been lost on the topic of a draft lottery.  Reports from yesterday’s negotiating sessions indicated that the two sides were at least coming close to settling the exact number of teams involved in such a lottery, though the owners attempted to make a larger lottery (as per the MLBPA’s demands) contingent on the acceptance of a 14-team postseason.  That same offer was floated by the league today and turned down by the players, who had previously expressed a willingness to expand the playoffs to 12 teams.  Given the amount of extra revenue involved in extra postseason games, it isn’t surprising that the union isn’t willing to make such a major concession to the owners without tying it to an issue of greater import than the draft lottery.

Saturday’s sessions mark the sixth consecutive day of talks between the two sides, yet this increase in negotiations has yet to produce much in the way of concrete progress.  MLB has stated that without a CBA in place by Monday, some regular-season games will have to be canceled, though the union has remained skeptical that the league truly sees February 28th as a firm deadline.

However, some Spring Training games have already been canceled, and it becomes increasingly unlikely that Opening Day will proceed as scheduled on March 31.  If the hard feelings reportedly generated in today’s meetings actually do result in a breakdown in talks, it will only lead to more dismay and frustration among baseball fans who are more than ready for the lockout to be over.

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MLB Looking To Move Athletics Back To Revenue-Sharing Recipient Status

By Mark Polishuk | February 26, 2022 at 10:30pm CDT

The Athletics were singled out in something of a unique fashion in the last collective bargaining agreement, as their status as a revenue-sharing recipient was gradually phased out over the course of the five-year deal.  Under the terms of the now-expired 2016-21 CBA, the Athletics’ normal take of revenue-sharing funds dropped to 75% in 2017, 50% in 2018, 25% in 2019, and then nothing for the CBA’s final two years.

As negotiations about the new CBA (slowly) continue between the owners and players, the league is now looking to once again reinstall the A’s as a recipient of revenue-sharing, MLB Trade Rumors’ Tim Dierkes reports (via Twitter).  This appears to be one of the relatively few areas of common ground between the two sides, as the MLBPA is “willing to” restore the Athletics’ former status.

It remains to be seen exactly how baseball’s revenue-sharing system could be altered in the next CBA, though given the owners’ unwillingness to discuss any revenue-sharing changes whatsoever with the union, whatever changes are made could be pretty minor.  It could be that Oakland’s shift back into the recipient category might stand as the biggest move in this area, as the A’s will now stand to make tens of millions of extra dollars each year.

Under the terms of the last CBA, 48% of each team’s local revenues were placed into a pool, then divided equally among all 30 teams.  Since some teams’ local revenues are naturally much larger than others, this provided quite a windfall for smaller-market clubs.  While the exact figures weren’t known, MLB.com’s Jane Lee wrote in December 2016 that the A’s received over $30MM in revenue-sharing funds in 2016.

This will have a wider impact on the other 29 teams, as the revenue-sharing teams will now be paying a slightly larger share of that revenue pot with the Athletics now removed from the sharers list.  Likewise, the teams receiving funds will now also get a slightly lesser share of the pie, with the A’s joining the party.  There was also the concept of the revenue-sharing rebate for larger-market teams in the last CBA (as explained by The Boston Globe’s Alex Speier) though it isn’t known if a similar mechanism might be in place for the next agreement.

The seemingly neverending saga of the Athletics’ quest for a new ballpark was the reason for their initial inclusion on the revenue-sharing list, and now the reason for their return.  Despite the lack of revenue generated from the Coliseum, the A’s don’t exactly play in a “small market,” given the size of Oakland and the Bay Area market in general.  As such, the decision was made to gradually remove the team from the group of revenue-sharers, though with over five years now gone, the Athletics are still not much closer to landing that long-desired new stadium.

Amidst much speculation about a potential move to Las Vegas, there has recently been more positive momentum towards a new ballpark in Oakland.  The franchise’s longstanding concept of a new stadium in the Howard Terminal area was recently given a vote of confidence by Oakland’s City Council, which certified an environmental impact review on the project.

There are still more logistical hurdles to be jumped, however, and between those potential obstacles and the time necessary to actually build the ballpark and adjoining infrastructure, it is quite possible the A’s might not have their new stadium in place before the end of a hypothetical 2022-26 term of the next CBA.  More will be known about the Athletics’ fate (whether in Oakland, Las Vegas, or elsewhere) in the next few years, so by the time the next CBA talks roll around, it would seem like the A’s would again be removed from the revenue-sharing recipient category if a new stadium project is indeed up and running.

In the interim, the A’s will reap the benefits of additional revenue.  For Oakland fans wondering if this means the team will spend these new funds on player payroll, it’s worth remembering that Athletics weren’t big spenders in their previous era of receiving revenue-sharing money, so a sudden spending splurge probably isn’t likely.  Since the A’s wouldn’t get any new funds until the end of the 2022 season anyway, it won’t do much to forestall the speculation that the A’s will be looking to cut payroll and move at least some of their higher-salaried players once the lockout is over.

From the MLBPA’s perspective, it was almost exactly four years ago today that the union filed a grievance against the Athletics, Rays, Pirates, and Marlins about how the teams were allocating the money collected via revenue-sharing, as receiving those funds wasn’t reflected in any boosts in player payroll.  To that end, it might seem curious that the union would be okay with the A’s again joining the revenue-sharing list, though speculatively, there could be a bigger-picture tactic at play.  As much as the league has claimed that any negotiations about revenue-sharing practices are a non-starter in CBA talks, the Athletics’ situation itself counts as a notable change in the revenue-sharing plan, which the MLBPA might perceive as a crack in the owners’ stonewall on the subject.

Beyond just the extra cash, the A’s may also benefit in another fashion from being a revenue-sharing recipient, depending on how the new CBA addresses free agent compensation.  Under the last agreement, revenue-sharing recipients stood to land a compensatory draft pick directly after the first round if they had a free agent who rejected a qualifying offer and signed with another club for more than $50MM.  While teams that lost certain free agents would still be eligible for a compensatory pick in the league’s new proposal, it remains to be seen exactly what the criteria would be for that compensation, or if revenue-sharing teams would be in line for a greater draft reward.

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MLB Pursuing Authority To Faster Implement On-Field Rules Changes In CBA Talks

By Anthony Franco | February 25, 2022 at 10:58pm CDT

Under the terms of the 2016-21 collective bargaining agreement, Major League Baseball had the authority to unilaterally implement on-field rules changes one year after formally proposing them to the Players Association. Even in the event the MLBPA rejected the specific idea under consideration, the league could put that provision into place one season later.

As part of this week’s negotiations on a new CBA, MLB has pursued a shorter ramp-up period for its ability to implement rules changes, report Evan Drellich and Ken Rosenthal of the Athletic. The exact grace period the league was targeting remains unclear, but MLB evidently doesn’t want to have to wait an entire year to implement rules adjustments without the union’s approval. The league would need the MLBPA’s approval to include the broad authority to expedite rules alterations in the next CBA, though, and Drellich and Rosenthal hear the union responded negatively to the league’s initiative.

While the league could leverage a shorter grace period to more quickly pass any number of rules changes, it seems the current motivation for trying to speed up the process is to more quickly implement one provision in particular: the pitch clock. The Athletic writes that the league specifically cited a pitch clock as a possible alteration it’d be interested in making.

MLB commissioner Rob Manfred voiced support for a pitch clock in November, saying it was a feature “owners remain very interested in” implementing. The league has been testing pitch clocks in the minor leagues as part of its initiatives to quicken pace of play and shorten game lengths, and it’s clear MLB has a desire to carry that over to the big league level.

The precise impact a pitch clock would have is a matter of some debate. Jayson Stark of the Athletic examined the possible impact of the Low-A West’s implementation of a 15-second pitch clock midseason last year, finding that average game length dropped 21 minutes after the clock was put in effect. However, J.J. Cooper of Baseball America pointed out that the implementation of 20-second pitch clocks in Double-A and Triple-A in 2015 had mixed results. Those levels saw an immediate significant drop in average game time, but game length gradually rose over time and eventually exceeded pre-pitch clock levels. There are myriad explanations for why games continue to take longer — more time between pitches, fewer balls in play leading to deeper counts — but the trend in the high minors indicates that merely instituting a pitch clock may not be a panacea in the league’s efforts to shorten games over the long haul.

Fans’ opinions on the pitch clock figure to vary. Some will embrace any opportunity to cut dead time out of the game, while others will recoil at the notion of timing a sport that has traditionally proceeded without clocks. Regardless, it seems MLB is intent on implementing a clock at some point. The players’ opposition to shortening the period for rules changes may be rooted in a broader unwillingness to centralize more power in the league office than in opposition to the pitch clock specifically. Either way, it seems they’re none too keen on the idea of allowing the commissioner to more rapidly change the game’s rules.

The league has used its authority to implement rules changes without union approval in the past. Most notably, MLB implemented the three-batter minimum rule for pitchers (another pace of play initiative) over the 2019-20 offseason. The MLBPA never formally agreed to that change, although they did assent not to challenge MLB’s installation of it as part of a broader package of alterations mutually implemented heading into the 2019 season.

Whether the league and union will discuss any other rules adjustments in the coming days and weeks remains to be seen. Upon announcing MLB’s implementation of the lockout in early December, Manfred indicated on-field rules changes might be tabled while the league and union dealt with core economics problems. Many of those economics issues remain, and time is dwindling for the sides to agree to a new CBA if the league is to start the regular season on time. Limits on defensive shifting and the automated strike zone are among other topics of possible discussion whenever MLB and the union circle back to considering changes to the on-field product.

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MLB Announces Cancelation Of Spring Training Games Through March 7

By Anthony Franco | February 25, 2022 at 7:39pm CDT

7:39 pm: Drellich adds that MLB attempted to tie changes to the draft order to the league’s desired 14-team playoff. Unsurprisingly, the union didn’t view that as a favorable tradeoff. The MLBPA has been amenable to a 12-team postseason, but has thus far been against a 14-team playoff, fearing that a broader field could reduce the incentive for teams to upgrade their rosters via free agency.

7:22 pm: Major League Baseball announced they’ve canceled all Spring Training games through March 7, as Jesse Rogers of ESPN was among those to relay (Twitter link). MLB had previously announced the cancelation of all exhibition contests through March 4.

Today’s news is little more than a formality. It became increasingly apparent as talks between MLB and the Players Association dragged on with little progress throughout the week that a new collective bargaining agreement wouldn’t be in place for games to begin next Saturday. The earliest games will get underway is now Tuesday, March 8 — and that’s contingent on having a new CBA finalized by next Monday, February 28.

Discussions between the league and MLBPA continued for the fifth consecutive day. The meetings lasted until the early evening, and the parties reportedly made progress on one issue — albeit one of comparatively lesser import than some others. Evan Drellich of the Athletic reports (on Twitter) MLB and the union exchanged proposals regarding the lottery to determine the amateur draft order. While the format wasn’t definitively agreed upon, Drellich hears they “made gains” in talks and there’s optimism they’ll find a mutually agreeable solution on that question soon.

The sides have exchanged proposals regarding the draft lottery throughout the week. MLB has offered to determine the top four picks by lottery, while the union has sought to randomize the first seven selections. A lottery would encompass all non-playoff teams from the previous season, with their odds of landing each pick likely weighted by inverse order of the previous year’s standings. Whatever picks are not determined by lottery would then be set by the reverse order of the prior season’s winning percentage, as had been the case for all selections under the last CBA.

Derrick Goold of the St. Louis Post-Dispatch reports (Twitter link) that the league’s latest proposal remains a four-pick lottery but includes various limits on how many consecutive seasons a team may be eligible for entry. That’s a key goal of the union, which has sought to discourage clubs from embarking on long-term rebuilds by capping how often a team can remain near the top of the draft. The MLBPA has proposed limiting teams’ eligibility for high choices based on both a) in how many consecutive seasons they finish near the bottom of the standings and on b) club market size.

Given the utter dearth of progress towards a midpoint on any issues throughout CBA discussions, that the sides are seemingly closing the gap on the lottery is welcome. That said, it’s worth keeping in mind that the lottery always looked to be one of the easier points for the league and union to find a solution. Issues like playoff expansion (a key goal of the league’s), the competitive balance tax, the bonus pool for pre-arbitration players and the union’s push for broader arbitration eligibility all remain unresolved and seem to be quite a bit more contentious.

Neither side made a formal proposal today on any issue other than the lottery, according to Joel Sherman of the New York Post. That said, Drellich tweets that the parties have had conversations about all other issues — even the CBT, on which neither side has made a formal offer in recent days. This afternoon, MLB commissioner Rob Manfred appeared at the negotiations for the first time of the week, meeting one-on-one with MLBPA executive director Tony Clark. Goold adds that Manfred’s appearance was unscheduled and came as a surprise to the union, though the commissioner did not speak with any current players. It marked the first known, in-person individual conversation between Manfred and Clark since 2020, as Drellich points out.

There’s obviously still plenty to hammer out, and we’re now only three days from MLB’s imposed February 28 deadline for a deal before the league begins to cancel regular season games. That continues to look like a tall task, although today’s reports come with a hint more optimism about the tenor of conversations than those from earlier in the week. They’ll meet again tomorrow and are expected to sit down every day through the end of the month in hopes of reaching an agreement.

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Liberty Media Reports Substantial Revenue Increase For Braves

By Steve Adams | February 25, 2022 at 12:28pm CDT

As one of just two MLB clubs owned by a publicly traded company, the Braves are the rare team whose books are regularly opened to the public. That leads to some yearly insight into the team’s revenues and operating budget. This morning, Liberty Media announced its 2021 earnings, reporting $568MM in total Braves revenue, $104MM in OIBDA (operating income before debt and amortization) and a $20MM operating income (Twitter links via Eric Fisher of SportBusiness Group and Jeff Passan of ESPN, the latter of whom has screenshots of the report).

Those numbers are specific to the Braves, not Liberty Media as a whole, and they represent (as one would expect) marked increases over the previous year’s revenues, when the MLB season was played without fans and shortened to 60 games in length. In 2020, Liberty reported a total of $178MM in revenue and operating losses both in OIBDA (-$53MM) and operating income (-$128MM).

It’s worth pointing out, too, that the Braves and other MLB teams opened the season without home stadiums at full capacity — although the Braves were the first team to shift to full capacity near the end of April. Still, their season began with Truist Park at 33% capacity for their initial seven-game homestand and moved to 50% capacity for their second homestand — another seven-game set later in the month. Atlanta averaged 13,006 fans per game during that first homestand (per the attendance figures available at Baseball-Reference) and 19,224 fans per day in that second homestand (which included a seven-inning doubleheader). Over the remainder of the season, the Braves averaged 32,181 fans per game, according to those same attendance figures.

Of course, while the Braves, like every other team, surely lost some early-season gate revenue due to capacity restrictions of varying levels, the Braves also reeled in more postseason revenue than any other organization in the sport. Truist Park hosted eight playoff contests as the Braves eventually took home a World Series championship. Liberty Media lists 79 regular-season home games (accounting for a pair of doubleheaders) and eight postseason home games, with a reported $6MM in “baseball revenue” (not “profit”) per home game.

Future regular-season earnings for the Braves seem quite likely to rise — not only because they’ll very likely be able to open the 2022 season at full capacity but also because  the team’s 2021 success has paved the way for a considerable hike in ticket sales. Liberty Media president Greg Maffei said today that the Braves’ 2022 season ticket sales  are already the highest they’ve been since 2000 (Twitter link via Jeff Schultz of The Athletic). David O’Brien of The Athletic adds that premium seating at Truist Park has already been sold out.

The earnings report from Liberty Media comes at a time when eyes are more fixated on the financial component of the game than ever before. Major League Baseball and the MLB Players Association are deadlocked in labor strife that, at its core, boils down to how the two parties ought to divide the billions of dollars generated by the league on a yearly basis. Commissioner Rob Manfred has already taken a great deal of flak for his claims that the “return on those investments (into owning a baseball team) is below what you’d expect to get in the stock market,” and his critics have already meted out a fresh set of barbs on social media today in the wake of Liberty’s books being opened.

Braves fans, in particular, are taking note of the team’s financials, as an understandably vocal majority has grown frustrated with the lack of a new contract for franchise cornerstone Freddie Freeman. Today’s report will do little to deter fans’ belief that the team can “afford” to re-sign Freeman, but that does not mean that ownership and/or general manager Alex Anthopoulos will make it happen at all costs. It’s never really been a question of whether the Braves have the pure funds to outbid the field, after all, but rather one of whether ownership is comfortable making a commitment of that magnitude and perhaps whether the front office deems it to be prudent.

With regard to the labor discord, both the league and the union will interpret the figures differently for the purposes of negotiations. Ownership will presumably point to the $20MM operating income. The union will likely more heavily weight the OIBDA and note that these figures do not include (as pointed out by Ben Nicholson-Smith, on Twitter) tax benefits/write-offs, baseball-adjacent revenues from The Battery (the mixed-use development surrounding Truist Park) or the general appreciation in franchise value. The Battery, according to Liberty’s figures, generated an additional $42MM in revenue and added another $7MM onto the Braves’ OIBDA (for a total of $111MM). At the end of the day, while it’s new information for fans and the MLBPA, the league has surely been aware of these figures and their timeline for release and already has a sense of the role the specifics will play in negotiations.

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“No Substantive Progress” Between League, MLBPA In Today’s Labor Talks

By Mark Polishuk | February 24, 2022 at 10:59pm CDT

The owners and players held their fourth consecutive day of meetings as the two sides continue to try and work out a new collective bargaining agreement, yet once again, “no substantial progress” came from the session, according to The Athletic’s Evan Drellich (Twitter links).  Representatives from the league and the MLB Players Association are scheduled to meet again tomorrow.

As outlined by Drellich and The Washington Post’s Chelsea Janes, the union made two minor concessions based on past proposals.  Whereas the MLBPA had sought to give an extra year of service time to 29 players considered to be victims of service time manipulation over the last five years, the union dropped that number to 20 players today.

The other new wrinkle related to the concept of a draft lottery to decide the first several picks of the amateur draft.  The league offered a lottery covering the first four picks while the union wanted the lottery to cover the first seven picks, and today’s MLBPA proposal retained that seven-pick concept.  However, the union altered its proposal to remove punishment for teams who had consecutive losing seasons.  It “had been a league concern that [the] system would punish teams that were just bad and not tanking,” Janes writes.

MLBTR has learned more specifics regarding the union’s proposal for the draft lottery, which would take effect in 2023. All non-playoff teams would be included in the lottery. The odds of landing the first pick would be weighted by inverse order of the previous season’s standings as follows (assuming a 12-team playoff, as the MLBPA has proposed thus far):

  • Team 1: 15% (the team with the worst record in baseball)
  • Team 2: 15% (the team with the second-worst record in baseball)
  • Team 3: 15%
  • Team 4: 12.5%
  • Team 5: 10%
  • Team 6: 8%
  • Team 7: 6.5%
  • Team 8: 5%
  • Team 9: 3.25%
  • Team 10: 2.25%
  • Team 11: 1.5%
  • Team 12: 1.25%
  • Team 13: 1.12%
  • Team 14: 1%
  • Team 15: 0.88%
  • Team 16: 0.75%
  • Team 17: 0.625%
  • Team 18: 0.375%

The MLBPA is also proposing competitiveness adjustments.  Revenue sharing payors that finish in the bottom eight in winning percentage in each of the two previous seasons or in the bottom 12 in each of the three previous seasons would pick no earlier than 10th.  Additionally, any team that does not receive revenue sharing that finishes in the bottom 12 in each of the four or more previous seasons would have their pick moved to #18.

Also, beginning with the 2024 draft, any revenue sharing recipient finishing in the bottom eight in each of the three previous seasons would pick no earlier than 10th.  Any such club in the bottom eight in each of the four or more previous seasons would have their pick moved to #18.

The union also made a slight modification in its efforts to grant rookies bonus service time based on performance, as Drellich first reported (via Twitter). Under the MLBPA’s proposal, infielders/catchers/DH’s who finish in the top five at their position in their respective leagues in WAR would receive a full year of service, while outfielders, starting pitchers and relievers who finish among their league’s top fifteen in WAR would as well. That’s a slight reduction from the union’s previous ask, which would’ve granted a full year of service for infielders/catchers/DH’s who finished among the top seven and outfielders/pitchers who finished among the top twenty.

The union is still pursuing a full year of service for top five finishers in Rookie of the Year balloting, all-MLB placement and a top three placement in Reliever of the Year voting. MLB has thus far been opposed to the idea of players “earning” service time, instead offering teams additional draft choices for promoting high-performing players at the start of the season.

Bigger-picture CBA topics (such as the luxury tax thresholds, minimum salary increases, salary arbitration eligibility, etc.) still remain up in the air, with today’s talks apparently yielding no movement on any of these issues.  As has become a regular feature of these talks, both sides left a negotiating session feeling frustrated.  According to Michael Silverman of The Boston Globe, the “players [are] upset with how far apart sides remain,” and “MLB negotiators told union they have run out of ideas and that owners are upset with players.”

February 28 remains Major League Baseball’s stated deadline for reaching a new CBA, or else the league has said it will start canceling games from the regular-season schedule.  As Janes notes, “the union doesn’t exactly agree to [February 28] as a deadline,” so it remains to be seen whether any urgency will finally be shown by either side in tomorrow’s session, or in any talks that might be scheduled for the weekend or Monday.  Considering the huge differences of opinion that remain between the league and the MLBPA, it is hard to believe that an entire new collective bargaining agreement could even be close to settled by Monday, let alone a fully agreement reached.

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MLB Again States That Regular Season Games Would Be Canceled If No CBA Is In Place By February 28

By Anthony Franco | February 23, 2022 at 10:59pm CDT

The daily collective bargaining sessions between Major League Baseball and the MLB Players Association continued this afternoon. MLB made a core economics proposal Monday, which the union countered yesterday. Neither side was pleased with the other’s latest offer, and the league has doubled down on previous assertions that regular season games will be canceled if no new CBA is agreed upon by the end of the month.

Last week, MLB informed the union it viewed February 28 as the deadline for an agreement that wouldn’t impact the regular season. MLB unilaterally instituted the lockout and could lift it at any time, but there’s no chance it’ll do so and cede negotiating leverage to the union. After today’s negotiations, a league spokesperson told reporters (including Hannah Keyser of Yahoo! Sports) that regular season games would be canceled if no CBA is in place by Monday. The league said it has no plans to make possible missed games up at a later date and noted that players would not have the opportunity to recoup lost game checks in that event.

Jared Diamond of the Wall Street Journal tweets that MLB also doesn’t intend to rearrange the schedule in the event games are scrapped. If the regular season were delayed but an agreement was eventually reached, the league would simply pick up where the current schedule dictates whenever games begin.

It’s possible the league is simply trying to exert leverage in an area where it feels it has the upper hand, reasoning that missing early-season games would be more detrimental to players than it would be to owners. The MLBPA has maintained that if players lose any portion of their salaries due to game cancelations, they’d refuse to agree to expansion of the playoffs in 2022. Postseason expansion has been a key goal of the league’s throughout the process, as it’d stand to benefit substantially from the possible sale of additional rounds to television partners.

In the meantime, the parties continue to haggle over economics. MLB responded to the union’s latest offer with a marginal raise in the minimum salary today. Previously, MLB had been proposing a flat $630K minimum or a tiered minimum based on a player’s service time that ranged from $615K to $725K. The league has scrapped the idea of differing lowest salaries depending upon service time and today offered to bump the leaguewide minimum to $640K next season, as Evan Drellich of the Athletic first reported (on Twitter). That would jump by $10K per season for the rest of the CBA, as follows:

2022: $640K
2023: $650K
2024: $660K
2025: $670K
2026: $680K

It’s a very minor move in the players’ favor, but one that seems unlikely to thrill the union. The MLBPA actually increased their desired league minimum in yesterday’s proposal (to MLB’s chagrin), seeking a $775K figure next season that’d climb $30K annually to $895K by 2026. The union paired that with a slight dip in its efforts to expand arbitration, but the league has stringently refused to entertain the possibility of broader Super Two eligibility altogether.

Last season, the league minimum was set at $570.5K. As Travis Sawchik of the Score calculated last month, the minimum would need to be set at $650K in 2022 to keep pace with inflation, relative to the terms of the 2016-21 CBA. MLB’s offer today isn’t far off that mark (at least for this year), but getting players paid earlier in their careers has been an overarching goal for the union throughout this round of collective bargaining. Thus, it seems unlikely the MLBPA will respond favorably to the proposal.

There’s obviously plenty of ground that’ll need to be made in the coming days — on issues ranging from the minimum salary and competitive balance tax to the players’ push for broader arbitration and the league’s desired playoff expansion — if the regular season is to begin on time. It remains to be seen whether either side would budge off their stated positions if any sort of progress is made later this week, but given the glacial pace in talks thus far, the possibility of losing regular season games seems greater on a daily basis. They’ll meet again tomorrow and are expected to talk every day through the end of the month.

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