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Collective Bargaining Agreement

MLB Owners Set To Meet As MLBPA Awaits Counteroffer To Last Week’s Proposal

By Steve Adams | February 7, 2022 at 4:15pm CDT

As the ongoing MLB lockout continues at a snail’s pace, the sport’s owners are convening at their quarterly meetings from Tuesday to Thursday. MLB Network’s Jon Heyman tweets the expectation among players is that a counterproposal will be among the topics discussed, and that a new offer from the league should be forthcoming in the days ahead (perhaps not until the owners’ meetings conclude, however).

It’s been nearly a week since the MLBPA made its latest proposal to the league — an offer that was met with the promise of a counter but instead resulted in MLB’s request for a federal mediator to intervene. The union outright rejected the notion of mediation, instead repeating a desire to head back to the negotiating table with MLB.

That was the widely expected route, as the mediation request always smacked as more of a public relations move than an earnest request. To that end, veteran left-hander Andrew Miller, one of the eight players on the MLBPA executive subcommittee, spoke with ESPN’s Jesse Rogers about the decision to reject mediation.

“…[W]e don’t think it speeds up the process at all,” Miller told Rogers when asked about the union’s rationale. “History tells us in our sport it hasn’t been favorable to reaching a deal and our staff and outside council guide us on things like this. That is what they are for. Our position is that it is quite the opposite from negotiating and being ready to negotiate. We are there and our proposals and desire to meet at the table show that. The league is refusing to counter, the league is the side that has stalled and not been willing or ready to meet.”

Miller’s point about history is likely a nod to federal mediator Bill Usery, who was brought in for just such a purpose in the 1994 labor stoppage. Usery provided very little utility in negotiations as he was not sufficiently up to speed on the intricacies and complexities of the issues at hand, and his presence ultimately did not result in an agreement being reached.

Further, as Giants lefty Alex Wood points out (Twitter link), it would likely take weeks to bring a federal mediator into the fold, and the basis for a new deal would be largely rooted in the existing CBA, from which the players are trying to create some distance. Wood’s usage of quotation marks when describing an “’impartial’ mediator” and his characterization of the current CBA as an “already broken system” underscore both the MLBPA’s distrust of any measures put forth by the league and of the union’s current dissatisfaction with the status quo.

That said, it’s still worth noting that United States labor secretary Marty Walsh has expressed a willingness to get involved in the lockout, as first reported by Politico’s Jonathan Lemire (Twitter link). Walsh later removed any doubt on the matter, issuing the following statement to Lemire:

“I have spoken to both the MLBPA and MLB about the ongoing contract negotiations and encourage both sides to continue engagement. Like any contract negotiation in any industry, I stand ready to help facilitate productive conversations that result in the best outcome for workers and employers.”

While the league may continue to hold out hope for outside mediation, it’s clear the players have no desire to traverse that path. A large number of Major Leaguers have taken to social media in recent days to express their frustration and their desire to negotiate a new deal. Twins catcher Mitch Garver, for instance, tweeted that key members of the union “want to meet every day until a deal is done,” contesting that “the other side does not.”

Former Tigers lefty Matthew Boyd, a union representative who’s currently a free agent, struck a similar chord to Miller in telling Evan Petzold of the Detroit Free Press that the union feels resorting to mediation would only further prolong matters. The clearest path to resolving matters, Boyd added, is to continue meaningful negotiations with the league.

Banding together to voice a unified set of goals has been a clear tactic for the MLBPA over the past week. Miller and fellow executive subcommittee member Max Scherzer have been vocal, as have the likes of Wood, Garver, Whit Merrifield, Jameson Taillon and many others. The talking points remain largely the same, as hammered home by Miller and Scherzer. Various players have reiterated that the MLBPA wants to eliminate the incentives for teams to tank (i.e. access to better draft picks, larger draft and international bonus pools), bring about better compensation for young/inexperienced players, put an end to service-time manipulation and, to use Scherzer’s exact terminology, create “a system where threshold and penalties don’t function as caps” (in reference to the current luxury/competitive balance tax).

It should be noted that not every player has spoken so strongly. Cardinals ace Adam Wainwright clearly shares the frustration of his union-mates, but he also at least rhetorically suggested that if the league were to propose “the exact same deal that we have right now, we would probably go play baseball” (link via Jeff Jones of the Belleville News-Democrat). Those comments were made off the cuff at a charity fundraiser, but they’re still a notable departure from other recent, public statements from the union.

That said, Wainwright agreed with his peers that a “good and fair deal” doesn’t appear likely as things presently stand. “That’s not even close to happening, honestly,” he added. “It’s pretty one-sided. And [MLB] are not really willing to talk right now. That makes it tough.” Wainwright further told Jones that MLB’s most recent offer “is far from a place we could even start negotiations.”

Whether a third party is ultimately brought on board or not, the ball is in MLB’s court as the union continues to wait for a counter to last Tuesday’s latest offer. It remains to be seen exactly when the league will make its next move.

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MLBPA Rejects MLB’s Request For Federal Mediation

By Steve Adams | February 4, 2022 at 3:07pm CDT

4:07 pm: Next steps remain unclear. Bob Nightengale of USA Today reports that there’s no set date for negotiations, but it’s possible discussions resume next week. Key league personnel will be in Orlando from Tuesday through Thursday for a scheduled quarterly owners meeting. Union representatives are expected to be available if a date for the next set of sessions is finalized. Commissioner Rob Manfred has a press conference scheduled for Thursday, and Nightengale writes he’s likely to formally announce a delayed start to Spring Training at that point.

2:25pm: Major League Baseball has offered the following response to the MLBPA’s statement:

“Our goal is to have players on the field and fans in the ballparks for Spring Training and Opening Day. With camps scheduled to open in less than two weeks, it is time to get immediate assistance from the Federal Mediation and Conciliation Service to help us work through our differences and break the deadlock. It is clear the most productive path forward would be the involvement of an impartial third party to help bridge gaps and facilitate an agreement. It is hard to understand why a party that wants to make an agreement would reject mediation from the federal agency specifically tasked with resolving these disputes, including many successes in professional sports. MLB remains committed to offering solutions at the table and reaching a fair agreement for both sides.”

While the league maintains it is committed to “offering solutions at the table,” it has yet to respond to the proposal issued by the MLBPA on Tuesday or provide a timeline as to when such an offer might be put forth.

12:45pm: One day after Major League Baseball declined to issue a counteroffer to the MLBPA’s latest proposal in collective bargaining talks and instead requested federal mediation, the MLBPA issued a statement rejecting that request. It reads as follows:

“Two months after implementing their lockout, and just two days after committing to Players that a counterproposal would be made, the owners refused to make a counter, and instead requested mediation.

After consultation with our Executive Board, and taking into account a variety of factors, we have declined this request.

The clearest path to a fair and timely agreement is to get back to the table. Players stand ready to negotiate.”

It’s a wholly unsurprising outcome, given the manner in which meetings between the two sides have played out thus far. Major League Baseball’s suggestion for a federal mediator was always eyebrow-raising, given their lack of any kind of new proposal. There’s nothing to mediate, after all, when one side declines to even bring an offer to the table. As Sheryl Ring points out (Twitter thread), mediation of this nature is generally a measure taken when both sides have submitted a good-faith proposal to resolve a dispute, and a third party then helps foster progress toward a resolution.

The MLBPA submitted its most recent proposal on Feb. 1, wherein they offered only a marginal drop from a proposed $105MM pre-arbitration bonus pool to $100MM but also agreed to a league-proposed framework regarding changes to service time for young players. Specifically, MLB suggested awarding compensatory draft picks to teams that rostered young prospects who went on to finish well in Awards voting. That, in theory, would give teams some incentive to carry top prospects on their Opening Day roster rather than hold them in the minors for three weeks to secure an additional year of club control, as is so often the case. The union, in addition to its extremely modest drop in the pre-arbitration bonus pool, reportedly made some yet-unspecified tweaks to the league’s latest service-time proposal.

While details remain unclear, it’s evident that the league was nonplused by whatever ostensible were put forth by the players. A counter-offer was said to be in the works, but MLB instead shifted the onus back to players in a different and unexpected manner when it made its mediation request.

The end result is another several days with no progress, little to no actual negotiation, and a narrower window to conclude matters before the season begins. It’s already a foregone conclusion that Spring Training won’t be starting on time, and a best-case scenario now appears to be a truncated version of spring camps that still leaves enough time for players to ramp up for the regular season. There’s no guarantee that’ll happen, however, and the longer the interminable deadlock in negotiations lingers, the likelier it becomes that the regular season will be impacted.

As things stand, it’s not at all clear when talks will resume. Several players — James Paxton, Zack Britton and Whit Merrifield among them — have taken to social media to express some frustration with the lack of an MLB counterproposal (all Twitter links). They’ve joined up in offering a unified message that “a significant part of collective bargaining is… actually bargaining” — a message that other players are continuing to echo in greater number.

Now that the mediation request has been denied, one would assume a league counteroffer to be the next logical step, though MLB has yet to offer a rebuttal to the union’s latest statement.

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MLB Will Not Counter MLBPA’s Latest Offer, Requests Federal Mediator To Help Resolve Lockout

By Mark Polishuk | February 3, 2022 at 9:51pm CDT

9:51PM: The Players Association is likely to turn down the league’s request for a mediator, according to Drellich (via Twitter).

4:10PM: The league will not be making a counter to the MLBPA’s most recent offer, The Athletic’s Evan Drellich reports (via Twitter).  The union made their offer on Tuesday and MLB was expected to make a response, though this will now apparently not be the case.  Between this lack of a counter-offer, no new meetings scheduled between the two sides, and now the league’s request for a federal mediator, it is unclear when the next set of negotiations may take place.

3:29PM: Major League Baseball has asked the Federal Mediation and Conciliation Service for assistance in ending the lockout, ESPN.com’s Jeff Passan reports (Twitter link).  As per the league’s request, a federal mediator would step in to help resolve the many outstanding issues between the owners and players in negotiating the next collective bargaining agreement.  The MLBPA would also have to sign off on a mediator’s involvement, and it isn’t yet clear whether the union has consented to this third-party consultation.

It isn’t uncommon for the FMCS to become involved in sports-related work stoppages, as federal mediators all played roles in the NFL’s 2011 lockout, the NBA’s 2011 lockout, and the 2012-13 NHL lockout.  In addition, Bill Shaikin of The Los Angeles Times noted that former FMCS director William Usery was appointed by President Bill Clinton to try and help baseball’s owners and players come to an agreement that would end the 1994-95 players’ strike.

Results were mixed, as FMCS involvement didn’t do much in the NFL’s case, nor did Usery’s involvement help bring the 1994-95 strike any closer to an end.  It is worth underscoring that a federal mediator is there only to help facilitate talks between the two sides, and cannot force either party to accept a deal.

With this in mind, it doesn’t necessarily mean that the lockout is any closer to a resolution.  In the absolute best-case scenario that a mediator’s involvement would suddenly jumpstart talks, it would likely be some time before a new CBA is finalized — Jeff Jones of The Belleville News-Democrat observes that the aforementioned NBA and NHL lockouts needed roughly five more weeks of talks to reach a resolution.  If Spring Training didn’t begin until mid-March, some regular-season games would need to be canceled.

A quick end to the lockout seems quite remote, however, given the large divides that have already become apparent in earlier talks between MLBPA and the players’ union.  If anything, requesting a mediator at this relatively early stage of negotiations is unusual, and it could be a tactic by the league to put some public pressure on the union.  (Labor lawyer Eugene Freedman raised this point as part of a multi-Tweet thread about today’s news.)  According to USA Today’s Bob Nightengale, a player with direct knowledge of the labor talks referred to the mediation request as “a publicity stunt” from the league.

While the lockout has only been going on for a little over two months, there is certainly a ticking-clock element to negotiations, given that Spring Training camps were scheduled to open within two weeks’ time, and Opening Day is scheduled for March 31.  If the “publicity stunt” sentiment is shared by the union members at large and the MLBPA doesn’t agree to FMCS mediation, it would represent yet another setback in talks (or lack thereof) between the two sides.

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MLBPA Drops Proposed Bonus Pool Allotment From $105MM To $100MM

By Anthony Franco | February 2, 2022 at 11:10pm CDT

FEBRUARY 2: While the parties are meeting on non-core economics issues today, both Ben Nicholson-Smith of Sportsnet and Michael Silverman of The Boston Globe write that core economics discussion could pick back up by the end of this week. Whenever those discussions resume, the owners are likely to put forth their response to the MLBPA’s Tuesday proposal.

FEBRUARY 1: There was another round of collective bargaining negotiations this afternoon, at which the Major League Baseball Players Association made its latest proposal. According to various reports, the union put forth only small changes relative to its past offers.

The most meaningful alterations are twofold, hears Evan Drellich of the Athletic (Twitter thread). First, the union tweaked the bonus pool system that would award exceptional pre-arbitration performers. While the MLBPA had pushed for a $105MM pool in previous offers, they reduced that number to $100MM in today’s proposal. That’s still far above the $10MM that MLB has envisioned for those bonus allotments, leaving a massive gap yet to be bridged. As Drellich and Ken Rosenthal explained yesterday, that’s even before accounting for the fact that the MLBPA is hoping to spread that money to a smaller group of players than MLB would like, given the union’s push for players reaching arbitration earlier in their careers.

The other known modification to the union’s offer, per Drellich, involves efforts to disincentivize service time gaming. The MLBPA is seeking to allow players to “earn” a full year of service based upon their finishes in various awards voting and placements on Wins Above Replacement leaderboards. The union’s most recent offer would grant a full year of service to catchers and infielders who finish among the top seven in each league in their position’s WAR rankings; outfielders, starting pitchers and relief pitchers who land among the top 20 in their league by WAR at each position would also pick up a bonus year. That’s less comprehensive than previous union proposals, which would’ve granted a full year of service to catchers and infielders among the top 10 at their position and outfielders and pitchers among their league’s top 30. (Presumably, the union’s previous efforts to reward service time based on awards voting remains in place).

Basing service time off positional WAR rankings has its challenges. Teams have become increasingly flexible in deploying players all around the diamond, perhaps making it difficult to identify certain players’ “true” positions. That’s also the case in drawing a distinction between starters and relievers, particularly as teams have expanded their use of openers and true bullpen games to manage pitcher workloads and mitigate the times-through-the-order effect (where hitters tend to perform better after seeing the same pitcher multiple times in an outing). The league and union would also need to agree upon some form of WAR metric — whether by pulling directly from one website like FanGraphs or Baseball Reference, blending multiple public WAR figures together to create a composite number, or by fashioning one from scratch.

Finally, the union acquiesced (at least in concept) to a league initiative on service time manipulation. MLB’s most recent proposal included the possibility of teams receiving draft pick compensation as a reward for keeping top prospects on their roster for an entire season, if those players go on to hit certain thresholds in awards voting. Drellich tweets that the union is on board with the possibility of awarding extra draft selections to incentivize teams to put talented young players on their active roster, although the union’s proposal contained unspecified modifications to MLB’s vision.

Much about the MLBPA’s proposal this afternoon remains unchanged relative to past discussions. Bob Nightengale of USA Today writes that the parties remain significantly divided on issues like the lowest league minimum salary — the union is seeking $775K; MLB has offered $615K — and the next base luxury tax threshold, which the MLBPA is hoping to set at $245MM while MLB has proposed $214MM.

Given the relativity minor changes in the union proposal, it’s little surprise that general sentiment about the state of negotiations remains overwhelmingly negative. Chelsea Janes of the Washington Post tweets that today’s talks were “heated.” Jeff Passan of ESPN suggests the prospect of starting Spring Training on time is now “in grave danger,” while Jon Heyman of the MLB Network calls it remote. Nightengale tweets that the parties are expected to meet again tomorrow but will limit those talks to issues outside of core economics.

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Quick Hits: Mullins, Farm Rankings, Mariners, Universal DH

By Sean Bavazzano | February 2, 2022 at 10:23pm CDT

Cedric Mullins of the Baltimore Orioles, baseball’s top power-speed threat in 2021, opened up in a video (Twitter link) that dropped today about some previously private health struggles with Crohn’s disease. The 27-year-old details how teammate Trey Mancini’s abrupt colon cancer diagnosis before the 2020 season helped him pay more attention to his own health woes.

This introspection ultimately led Mullins down a path that included intestinal surgery in November 2020, severe weight loss, and a Crohn’s disease diagnosis that very well could have been career-derailing. That Mullins broke out last season— earning an All-Star nod, Silver Slugger, and the distinction as baseball’s only 30-30 player— is made all the more remarkable by the presence of a condition that so often proves debilitating. We at MLBTR tip our collective caps to Mullins for sharing his story and raising awareness for a condition that is growing in prevalence.

Some more uplifting news from around the league…

  • Baseball America unveiled their 2022 Organization Talent Rankings today, with the Seattle Mariners claiming the top spot on this offseason’s installment. With talented youngsters like Julio Rodriguez, George Kirby, and Noelvi Marte forcing their way up the minor leagues and the Mariners fresh off a 90-win season, the time may be right to buy stock in the Mariners franchise. BA’s Kyle Glaser notes that 16 of the last 17 teams to claim the top farm system have reached the playoffs within two years of earning that distinction. The one team who bucked that trend, the 2011 Royals, took three years, reaching the World Series in 2014 and winning it in 2015. This history may prove to be of huge import for Seattle fans, who are now 20 years removed from their last playoff appearance.
  • Jon Heyman of MLB Network lent more credence to the idea that a universal DH will be included in the next CBA, stating (via Twitter) “Barring something totally unexpected, it can be assumed at this point that the universal DH will be in place in 2022”. Heyman adds that both the player’s union and league are in favor of implementing the rule, though there is some disagreement about which party will benefit more from having a DH in the National League. We polled readers back in December to gauge how a universal DH would be received, with 62% of readers expressing enthusiasm, 26% expressing disdain, and another 12% expressing indifference to the change.
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Baltimore Orioles Collective Bargaining Agreement Seattle Mariners Cedric Mullins George Kirby Julio Rodriguez Noelvi Marte Trey Mancini

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Collective Bargaining Issues: Service Time, Arbitration

By James Hicks | February 1, 2022 at 1:58pm CDT

As covered at length by MLBTR’s Anthony Franco, Ken Rosenthal and Evan Drellich of The Athletic published a relatively bleak account of the state of negotiations between players and owners yesterday. With the scheduled start of Spring Training fast approaching, the MLBPA — widely viewed among players as having negotiated the short end of the agreement that ran from 2016-2021 — views the owners’ most recent proposal as worse than the prior arrangement. Giants player representative Austin Slater summed up the union’s view when he told Susan Slusser of the San Francisco Chronicle that MLB’s present stance on questions of core economics were “disingenuous” and “a smokescreen” and implied that players viewed owners’ pre-lockout behavior as unprofessional.

Per Rosenthal’s and Drellich’s report, players and owners remain at loggerheads on most — if not all — of the core issues in play. These issues — each of which bear directly on some combination of total revenue, the way revenue is shared between players and owners, and labor conditions — include playoff expansion (a major priority for owners), an international draft (which the players have made clear they’d only agree to in exchange for a significant concession), the competitive balance tax threshold (players view it as a major hindrance to salary growth and would like to see it grow substantially), the minimum salary (which all players make at some point in their career and sets the ‘replacement’ cost for veterans), revenue sharing (players see it as supporting tanking), and draft order (players want a lottery for top picks to disincentivize tanking).

While an on-time start to Spring Training looks like a pipe dream and Opening Day seems to be in increasing jeopardy, owners and players appear to have made at least some progress on one issue: the treatment of players prior to arbitration eligibility. Under the previous agreement, the great majority of players with less than three years of service time were paid the league minimum ($570,500 in 2021) or thereabouts before becoming eligible for salary arbitration (wherein team and player could negotiate but would have a salary set by an arbitrator should they fail to reach a deal) and remain under team control for three further seasons. (Players in the top 22 percent among those with between two and three years of service time, known as ‘Super Twos,’ were granted arbitration rights a year early, giving them four years of eligibility.)

In November, owners proposed eliminating salary arbitration entirely, instead creating a performance-based (by fWAR) salary pool (a solution with the potential to pay young high-end performers a great deal more but that shifts the bulk of injury and performance risk from team to player), while players proposed lowering the arbitration eligibility bar from three years to two (thereby diminishing a year of extraordinary surplus value generated by players entering their primes). Unsurprisingly, both proposals were non-starters.

Recent negotiations appear to have yielded a potential compromise in principle, if not in monetary value. Though the union has not yet dropped its demand for an additional year of arbitration eligibility, each side has proposed the creation of a salary pool for pre-arbitration players — owners have offered $10MM, players have asked for $105MM — to be distributed according to performance, with the biggest bonuses awarded according to MVP, Cy Young, and Rookie of the Year voting results. As Rosenthal and Drellich note, owners agreeing to a pool value closer to nine digits than seven might persuade players to accept the continuation of the arbitration status quo.

Some common ground appears to exist on the related topic of service-time manipulation, an issue that rose to prominence in 2015 when the Cubs stashed consensus top-5 prospect (and eventual NL Rookie of the Year) Kris Bryant in the minors for just under two weeks in order to ensure an additional year of club control. Though Bryant’s grievance against the Cubs was ultimately denied, owners appear to agree that such manipulation is a bad look for the game, but their solution differs substantially from the union’s. Both owners and players have proposed somewhat convoluted systems. The union plan would grant a full year of service to a) any player who finishes in the top five in either league’s Rookie of the Year voting, the top three for reliever of the year, or made first- or second-team All-MLB; b) finished in the top 10 at their position in an average of bWAR and fWAR if a catcher or infielder; or c) finished in the top 30 at their position in the same average if an outfielder or pitcher. MLB’s plan would reward teams rather than players, granting a draft pick (after the first round) to any team that keeps a pre-season top 100 prospect on its roster for a full season should that player also finish in the top three in Rookie of the Year balloting or in the top five in MVP balloting in any of his first three seasons.

Owners reportedly view the players’ proposal as affecting a much wider pool of players than they’d like, and there’s no doubt that the union’s scheme would cut into teams’ ability to generate surplus value (in short, the difference between the salary of a player generating a given quantity of on-field value and the cost of that value on the open market). It would do particular damage to teams operating on the model associated with the Rays and A’s of the last several decades, whereby teams generally either lock up players early in their careers for below-market rates (a la the deal Evan Longoria signed with the Rays in 2008, which gave the team nine years of control) or trade them for a maximal return before they reach free agency (as the A’s are likely to do with Matt Olson this offseason). In the 2021 season, for instance, Wander Franco would have been granted a full year of service time under the players’ proposal despite not making his debut until late June — keeping him under team control only through the 2026 season rather than through 2027 — while under the owners’ proposal the Rays would have only received a draft pick had they kept the twenty-year-old on their roster from Opening Day.

How much progress these apparent areas of agreement actually represent is a matter of some debate, and fans should bear in mind that even in these comparatively productive areas of discussion, significant and material gaps persist. Whether or not the 2022 season will begin on time remains an open question, but progress — or a lack thereof — on matters that affect the earning power of all players in the early years of their careers will go a long way toward providing an answer. In any event, the owners’ present proposals aren’t likely to cut the mustard with an MLBPA that feels it’s held the short end of the revenue stick for years.

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MLB, MLBPA Still Far Apart As Scheduled Start Of Spring Training Nears

By Anthony Franco | January 31, 2022 at 10:58pm CDT

Over the past couple weeks, Major League Baseball and the MLB Players Association have returned to the negotiating table on core economics issues. They’ve been the first notable collective bargaining discussions since MLB instituted a lockout early on December 2. Yet fans’ hopes that talks might quickly thereafter lead to a resolution of the work stoppage that’s soon to enter its third month are unlikely to be realized.

As Ken Rosenthal and Evan Drellich of The Athletic explained this afternoon, the sides remain divided on myriad key issues. According to Rosenthal and Drellich, the possibility of Spring Training commencing as originally scheduled “is clearly in jeopardy.” Of more import to most is the threat of a delayed start to the regular season. Multiple reports over the course of the lockout have suggested March 1 could serve as a soft deadline for a new CBA to be in place if the season is to open on the currently-slated March 31. With the calendar flipping to February in a few hours, there’ll need be rapid progress over the coming month.

According to Rosenthal and Drellich, the MLBPA views the proposals thus far made by MLB as less favorable to players than were the terms of the 2016-21 CBA. That’s an ominous development. The players union entered this round of collective bargaining talks less than enamored with that CBA and in search of a few significant changes (i.e. dramatically expanded luxury tax thresholds, a path to free agency after five years of service, a $100MM cut to revenue sharing), some of which it has since stopped pursuing.

Nevertheless, it’s not particularly surprising to hear of the union’s ongoing displeasure with negotiations given some players’ public comments on the matter. For instance, Giants player representative Austin Slater told Susan Slusser of the San Francisco Chronicle last week that he considered MLB’s most recent economics proposal “disingenuous” and “a smokescreen,” although he did characterize that set of talks as more “professional” than prior meetings had been.

Unsurprisingly, The Athletic writes that MLB believes it has made player-friendly concessions. The league acquiesced to a union proposal for a salary pool to award exceptional performers who haven’t yet reached arbitration eligibility — at least in concept. Yet there’s a massive separation in the amount of money each side would like to see involved. The union proposed the creation of a $105MM pool; MLB offered to set aside $10MM. And as Rosenthal and Drellich explain, the gap is actually larger than those numbers might suggest since the parties continue to haggle about the number of players who should qualify for arbitration.

Throughout negotiations, the MLBPA has pushed for arbitration eligibility after two years of service time. The league has considered that a non-starter, preferring to keep the previous system in place. Under that setup, most players required three years of service to reach arbitration, while a certain subset of players with between two and three years — those in the top 22% of service among their class — also qualified through the Super Two provision.

The union’s proposed $105MM pool for pre-arb players, then, would only be divided among players with less than two years of MLB service, with anyone in the 2+ service bucket reaching arbitration. MLB’s $10MM counteroffer was tied to the previous arbitration setup, to be divided among players with less than three years of service (aside from Super Two qualifiers). So, not only is the union seeking a significantly larger sum than MLB was willing to offer, the PA’s vision was to divide that money among a comparatively smaller group of players than MLB has in mind. (According to Rosenthal and Drellich, MLB is also unwilling to expand the number of players in the 2-3 year service bucket who could qualify as a Super Two in addition to its steadfast opposition to universal two-year arbitration).

As MLBTR has covered in recent weeks, numerous gaps between the parties persist. MLB and the MLBPA have differing goals on such topics as playoff expansion, an international draft (which Rosenthal and Drellich write the union is unlikely to agree to “unless it is part of a significant tradeoff”), the competitive balance tax, the league minimum salary, revenue sharing and the amateur draft order. That they’ve resumed discussions of late is a welcome development, but they remain far apart on enough important topics there doesn’t appear to be an imminently forthcoming resolution. Barring rapid progress, the specter of lost gameplay seems to loom larger than ever. The parties’ next set of economics discussions is slated for tomorrow, reports Jeff Passan of ESPN (on Twitter).

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Collective Bargaining Issues: Draft Lottery

By Anthony Franco | January 27, 2022 at 10:53pm CDT

As part of ongoing collective bargaining deliberations, Major League Baseball and the MLB Players Association have kicked around the possibility of implementing some form of draft lottery. With both sides willing to put a lottery in place, it seems likely to be included whenever the next CBA is finalized.

The precise format the lottery would take remains an open question, though. The MLBPA — of the mind that a higher draft slot for teams with worse records incentivizes already bad teams not to improve — has pushed for a lottery to determine the first eight selections. MLB has favored a narrower system, with only the top three choices to be settled by the lottery. While the sides differ on the number of picks it would impact, Ben Nicholson-Smith of Sportsnet reports (Twitter links) they are in agreement that all non-playoff teams would be eligible for the lottery. The team’s chances of winning would be weighted such that clubs with the worst record the previous year would have the highest odds of landing a high pick.

That’s broadly similar to the systems in play with both the NHL and NBA, although those leagues have some individual nuances. The NHL prohibits teams from jumping more than ten spots relative to their position in inverse standings order, effectively restricting a shot at the top pick to the league’s bottom 11 finishers. The NBA allows all non-playoff teams a chance — admittedly a very small one for the best non-playoff clubs — to get a top-four selection but doesn’t allow teams outside the bottom five in the standings to make more marginal moves up the draft order (say, from 12th to 9th).

MLBTR has learned some specifics regarding the MLBPA’s latest proposal for the draft, which MLB rejected during recent collective bargaining discussions. Under the union’s offer, teams would find themselves excluded from the lottery for finishing below certain thresholds in the standings for two to three consecutive seasons. The specific thresholds for exclusion varied depending upon market size, with larger-market clubs facing stricter requirements for lottery eligibility. Non-playoff teams either excluded from or that didn’t win selection in the lottery would select in reverse order of the previous season’s standings from Pick #9 onwards; playoff teams would select in reverse order of regular season record after all the non-playoff teams have picked, as is the case under the current system.

The possibility for lottery exclusion is doubtless a measure the union hopes to implement in response to tanking, with the lowered draft position serving as something of a punitive measure for teams that finish among the league’s worst across a multi-year stretch. Diminished draft position for repeat bottom-dwellers wouldn’t alone stamp out rebuilding, and some teams that merely underperformed rather than setting out to rebuild would be adversely affected. Yet avoiding the possibility of the same teams collecting top picks for three-plus straight years seems to be a goal for the MLBPA, with the union taking particular aim at unsuccessful large-market franchises that should theoretically have enough of a financial advantage to avoid lengthy down stretches.

On the flip side, the union has proposed measures that would reward competitive smaller-market franchises with additional draft choices. Clubs eligible for Competitive Balance picks — those among the bottom ten leaguewide in either revenue or market size — would receive a bonus pick before Competitive Balance Round A (around #31-#40 overall in a typical draft) the year after reaching the postseason. Competitive Balance-eligible teams that finish .500 or better but don’t reach the playoffs would receive a bonus pick before Competitive Balance Round B (around #65-#75 in an average year).

Much about the potential MLB draft lottery remains unclear. The number of picks subject to the lottery and the probability of moving up for each team based on their position in the standings remains to be determined. So too is the number of teams that will be involved. How many non-playoff teams will there be in the next CBA? That’s presently unknown, given the league’s desire for an expanded postseason field. It’s also not clear whether a lottery would only apply to the domestic draft, or if a draft for the acquisition of international amateurs — which MLB hopes to include in the CBA — would contain one as well.

The draft lottery is far from the most important point of contention between the league and union. The competitive balance tax, league minimum salary and path to arbitration eligibility are all among the bigger topics to iron out. Implementing a draft lottery is, however, one of the smaller yet visible ways in which the league is likely to change in the coming months.

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MLB Rejects MLBPA’s Proposal For $30MM Cut To Revenue Sharing; Latest Details On Luxury Tax

By Anthony Franco | January 25, 2022 at 8:24pm CDT

8:24 pm: Susan Slusser of the San Francisco Chronicle writes that MLB’s proposal would also include international signing bonus pool forfeitures for teams that exceed the CBT threshold. Interestingly, Slusser adds some details on the union’s CBT proposals as well. Under the MLBPA’s proposed framework, the CBT would escalate from the $245MM mark in 2022 to $273MM by 2026.

8:06 pm: Over the past two days, both the MLB Players Association and Major League Baseball have put forth proposals on some of the game’s core economic issues. While the sides have made a bit of movement towards a midpoint — the MLBPA agreed to drop its push for earlier free agency eligibility; MLB agreed to a union formulation for a bonus pool that’d award certain pre-arbitration players based upon their performance — there’s still plenty of work to be done.

Ben Nicholson-Smith of Sportsnet (Twitter links and thread) provides more details on MLB’s offer this afternoon. Notably, the league rejected the union’s recent push for a $30MM cut in revenue sharing, reiterating its desire to leave the process unchanged. (The MLBPA had initially been seeking a $100MM cut to revenue sharing but dropped the ask in yesterday’s offer). MLB also rejected a union push for players to accrue service time during postseason play.

Both Nicholson-Smith and Bob Nightengale of USA Today note that the league continues to push for more significant penalties for teams that exceed the luxury tax threshold. According to Nightengale, MLB’s most recent offer on the matter would’ve included a 50% tax on CBT overages and the forfeiture of a third-round draft pick for surpassing the threshold.

That’d mark a rather significant uptick over the penalties in the previous CBA, which contained no draft pick forfeiture and a 20% tax on overages for teams exceeding the base threshold for the first time. The sides are also divided on where such a threshold should be set. While the union has pushed for the CBT marker to jump from $210MM to $245MM next season, MLB has offered a far more modest increase to $214MM next year, maxing out at $220MM at the end of a five-year term.

With plenty of key economic issues still to be ironed out, Jeff Passan and Jesse Rogers of ESPN write that the parties are planning to turn their attention to some ancillary subjects over the coming days before coming back to the issues of greater divide. Nicholson-Smith tweets that the joint drug agreement and grievance procedures are among the forthcoming topics of discussion.

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MLB, MLBPA Discuss Potential Bonus Pool For Pre-Arbitration Players, Changes To League-Minimum Salary

By Steve Adams | January 25, 2022 at 7:54pm CDT

7:54 pm: According to Bob Nightengale of USA Today, the proposed pool system could allow players to increase their salaries by as much as 385% depending upon their WAR totals and placement in awards voting. He adds that under this system, reigning NL Rookie of the Year Jonathan India would be in line for a $1.193MM salary despite not yet being arbitration eligible.

3:31 pm: After weeks of silence between the two parties, Major League Baseball and the MLB Players Association met today for a second straight day as they work toward a new collective bargaining agreement. While an agreement is not believed to be anywhere close, there’s at least been some semblance of headway in talks (though the extent of that progress is debatable).

For instance, MLB Network’s Jon Heyman tweets that the MLBPA had sought to raise the minimum salary from $570,500 to $775,000 — but MLB had countered with a proposal for a $600K minimum. (For context, the minimum salary has risen between $7-10K in each of the past several seasons anyhow.) The league today moved that offer forward a bit further, offering a $615K minimum salary for players with less than one year of Major League service time, per Chelsea Janes of the Washington Post (Twitter link).

Of course, the value of that “concession” is rather subjective. As Travis Sawchik of The Score observes, in order to keep up with inflation, the league would’ve needed to push the minimum salary to $650K just to match the minimum salary from the start of the 2016-21 collective bargaining agreement. Viewed through that lens, the league’s offer could actually be seen as a step back. The Athletic’s Evan Drellich adds that the minimum salary for players with one to two years of service would be $650K under the current proposal, while players with between two and three years would receive at least a $700K salary.

Interestingly, Sawchik reports that MLB proposed fixed salaries at those league minimum figures for players in each service bucket. While players would presumably still be free to sign early-career contract extensions, that would eliminate the system of teams renewing contracts for pre-arbitration players at amounts slightly higher than the league minimum. As one recent example, the Mets offered Pete Alonso a salary a bit north of $650K in 2020 (nearly $100K more than that year’s league minimum) as a reward for his Rookie of the Year-winning 2019 campaign. Under MLB’s proposal, that kind of deal would no longer be permitted.

Janes adds that the league has also dropped proposed scenarios that would alter the arbitration system and eliminate Super Two status — a designation that allows some players to reach arbitration a year early. Shrinking the number of players who can reach arbitration seems like something that would’ve been a non-starter for the MLBPA anyhow, so as with the incremental increases to the minimum salary, taking that component off the table doesn’t feel like much of a step back.

More interestingly, Major League Baseball agreed to the MLBPA’s proposal for a bonus pool, funded by central revenues, to reward pre-arbitration players (Twitter link via Jared Diamond of the Wall Street Journal). Pre-arb players would be in line for bonuses based both on Awards voting and on reaching certain Wins Above Replacement markers, Janes notes.

That figures to present its own levels of complication, as there are multiple versions of Wins Above Replacement. Beyond needing to agree on which form of WAR to set as the standard, the concept isn’t likely to sit well with the proprietors of those metrics. Baseball-Reference’s Sean Forman has already taken to Twitter to explain how uncomfortable he is with the notion of players being assigned millions of dollars based on a metric that is constantly undergoing slight tweaks to keep up with changes in the game (his Twitter thread on the matter is well worth a full read). Additionally, as Sports Illustrated’s Emma Baccellieri points out (Twitter link), there are some obvious potential conflicts of interest in tying pre-arb bonuses to awards voting that is conducted by the media members who cover those players.

For this bonus structure to work, the two sides would need to agree on the particulars of the bonus pool — and it does not appear as though they’re remotely close to doing so. While it’s promising, to an extent, that MLB was at least amenable to the union’s proposed framework, ESPN’s Jeff Passan tweets that the MLBPA proposed a $105MM pool from which to reward those players. Not surprisingly, the league balked at that figure and countered with a $10MM pool — a figure at which players surely scoffed. Large as that gap may be, the mere fact that MLB is open to the concept clears the admittedly low bar set to declare progress in these talks.

It bears repeating that elements such as the minimum salary, arbitration and this newly conceptualized bonus pool for pre-arbitration players are all merely pieces of what is a much larger puzzle. The league’s larger priorities still include, perhaps most notably, the expansion of the playoff field — an endgame that would dramatically increase television and gate revenues at the most lucrative point in the MLB schedule. Players, meanwhile, have sought changes to a service-time structure that incentivizes teams to keep prospects in the minors longer than would otherwise be the case, a marked increase in the competitive balance (luxury) tax threshold, and measures to eliminate the incentives for teams to tank — among many other elements.

Suffice it to say, while it’s refreshing to hear of any progress, however slight, between the league and the union — it remains abundantly clear that major headway still needs to be made if Spring Training is to begin in mid-February, as currently scheduled. Most have suggested that a deal would need to be reached by Feb. 1 in order for that outcome.

The greatest concern is that any lack of accord between league and union will ultimately result in some portion of regular-season games being wiped out. Sportsnet’s Ben Nicholson-Smith and Drellich both suggested last night that Major League Baseball on Monday expressed a willingness to go down that road, if necessary, though the loss of regular-season games still figures to be a last resort and a worst-case scenario on all sides. There’s certainly a middle ground, where Spring Training could perhaps begin in late February or early March, paving the way for a truncated exhibition season and a full 162-game slate.

Whenever an agreement is reached, the league will also need to lift the current transaction freeze, sending front offices and player representatives alike into a frenzy to get the remaining group of unsigned free agents into Spring Training camps as quickly as possible and to resolve any outstanding arbitration cases. Front offices will need to work with fervor to complete any trades or other offseason dealings in an expedited fashion. The longer it takes for the league and union to strike a deal, the more hectic the aftermath of that agreement will be.

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