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Collective Bargaining Agreement

Rosenthal On Astros, Rangers, Nova, CBA

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Here’s the latest from Ken Rosenthal, via a video at FOX Sports.

  • Some members of the Astros are frustrated that the team didn’t deal for a top starter at the August 1 trade deadline, but GM Jeff Luhnow says the team ultimately didn’t make a big acquisition because teams were requesting big hauls in return, including players already contributing at the big-league level. Rosenthal notes that the Astros had previously had a surplus of starters, leading them to deal Dan Straily and then, months later, Scott Feldman for minimal returns (or perhaps seemingly minimal returns, since it’s way too early to get a clear read on Lupe Chavez, the very young pitcher the Astros got from the Blue Jays for Feldman). With Lance McCullers and Dallas Keuchel now hurt, though, the Astros might not have enough top starting pitching.
  • The Rangers attempted to acquire Ivan Nova from the Yankees last month, with the talks occurring very close to the deadline. The Yankees, of course, sent Nova to the Pirates, where he has had tremendous success in their rotation. Nova has posted a 2.53 ERA, 6.2 K/9 and a remarkable 0.4 BB/9 in 46 1/3 innings for Pittsburgh. It’s impossible to say, of course, whether Nova would have had similar success in Texas, which is a completely different context in which to pitch, perhaps especially for someone like Nova, who struggled with allowing home runs in New York. But he might well have been able to help a team that has seen A.J. Griffin and Lucas Harrell struggle at the back of its rotation over the past month.
  • MLB’s Collective Bargaining Agreement is due to expire at the beginning of December, but the two sides would prefer to have a new agreement in place by the beginning of November. The free agent market could unfold slowly without a new labor deal, with teams reluctant to commit to free agents without a clear idea of the rules going forward.

MLB Could Reduce Schedule Length

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With the collective bargaining agreement set to expire in December and negotiations for a new CBA underway, officials from Major League Baseball and the players’ union are discussing the length of the regular-season schedule, reports David Lennon of Newsday. Specifically, the idea of streamlining from 162 to 154 games is picking up steam, per Lennon, as it would be less taxing on the players than the current format. The American League previously switched from a 154-game schedule to 162 in 1961, while the National League followed suit in 1962.

Today’s teams have just 21 days off during the 183-day regular season, which Lennon notes has led to complaints from the players because of the grueling travel schedules they face. One reason there are calls for a shorter schedule relate to the league’s stricter performance-enhancing drug testing, according to Lennon. PEDs are tempting to use in part because they help players get through a rigorous schedule, but with tests becoming harder to beat, drugs perhaps aren’t the enticing option they were in the past.

Regardless of the players’ issues with the current setup, cutting the schedule could be unrealistic because of the negative financial consequences likely to accompany it. Teams are unsurprisingly reluctant to sign off on losing revenue from attendance and television ratings. Players would also be in danger of making less money, too, as commissioner Rob Manfred laid out earlier this week.

“There are ways to produce more off days in the schedule. Some of those have very significant economic ramifications that — if in fact we’re going down those roads — those economic ramifications are going to have to be shared by all of the relevant parties,” said Manfred. “You want to work less, usually you get paid less. But we are prepared to discuss the schedule issues and make proposals that are responsive to the ones that we’ve received from the MLBPA.”

The players’ best chance to ensure a lighter schedule and continue to rake in the same salaries would be to convince the league that the quality of performance will rise if they garner more rest, writes Lennon. Indeed, that factors into MLBPA executive director Tony Clark’s argument.

“I don’t agree that there would need to be a discussion about a loss of salary or a rollback of salaries,” commented Clark. “Because if there is a lessening of the games . . . the value of every game goes up as well. I’m not talking about raising ticket prices. What I’m talking about is the idea that if I’m a fan coming to a ballpark, or I’m purchasing a season ticket, I know I’m going to see my guys as a result of x, y, z being done to make improvements to their overall health.”

If the league and the union are ultimately unable to agree to an eight-game reduction, Lennon offers the possibility of a two- or four-game compromise. With no CBA in place yet for next season, a resolution should come soon.

Manfred On Athletics, MLB Diversity, Minor League Wages, Schedule, Kang

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MLB commissioner Rob Manfred had a wide-ranging conversation with reporters today in San Diego. Here’s a little of what he had to say, via Bill Shaikin of the Los Angeles Times (Twitter links: 1 2 3 4 5 6 7 8), Bleacher Report’s Scott Miller (1 2 3), David O’Brien of the Atlanta Journal-Constitution (1) and John Shea of the San Francisco Chronicle.

  • Manfred lists the number of African-American players (currently 8%, although he says 20% of recent first-round draft picks have been African-American) as a significant concern. “This is an economic imperative for us,” he says, noting that, as the US becomes increasingly diverse, MLB must strive for diversity as well. On a somewhat related note, Manfred also said that the lack of a Latino manager in the game right now was “glaring.”
  • MLB will not consider expanding until the Rays and Athletics get their stadium issues resolved, Manfred says. Manfred sounds determined to keep a team in Oakland, however. “I am committed to Oakland as a major league site,” he says. If the A’s were to depart, “we would be looking backwards and saying we made a mistake.” He adds that he thinks the Oakland market will be increasingly appealing going forward. “I think the growth in that area, the way the growth has moved up into San Francisco, I think Oakland is more likely than not to be a better market five years from now than it is today,” he says.
  • Perhaps unsurprisingly, Manfred said he was confident that labor talks this offseason would not result in a strike or lockout.
  • Of the current clamor to raise wages for minor league players (which has included a class-action lawsuit brought by former minor leaguers), Manfred says, “Excessive regulation could have a really dramatic impact on the size of minor league baseball,” seemingly suggesting that increased wages might result in the folding of some minor league teams.
  • It sounds like Manfred expects some form of draft pick compensation for free agents to continue into the next Collective Bargaining Agreement — he says owners would be making a “major concession” if draft-pick compensation were to be dropped.
  • It sounds like Manfred did not come out in support of an international draft today quite as strongly as he has in the past, but he did say MLB needs “a more transparent operating system in the international player acquisition process.”
  • Manfred admits that the current 162-game schedule is tough on players, and says players and owners are currently discussing ways to reduce the difficulty of the season by optimizing game times and improving teams’ travel schedules. Of the possibility of reducing the number of games, however, he says, “You want to work less, generally you get paid less.”
  • The league has not received enough information from law enforcement to decide whether Pirates third baseman Jung Ho Kang, who has been accused of sexual assault, should be placed on administrative leave.

Red Sox Notes: Ziegler, Clark, Trade Market

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New Red Sox reliever Brad Ziegler is a throwback to former Royals submariner Dan Quisenberry, ESPN’s Keith Law writes (subscription only). Like Quisenberry, Ziegler has been an effective closer for years despite not having elite velocity or throwing overhand. He can be a good eighth-inning option for the team, or he can work multi-inning stretches. Law characterizes the Diamondbacks’ return in the deal as being good enough, given that Ziegler is 36 and will be a free agent at season’s end — second baseman Luis Alejandro Basabe runs well and has good plate discipline, and Jose Almonte’s fastball might not be good enough for him to start in the long run. Here’s more on the Red Sox.

  • With negotiations for a new collective bargaining agreement looming, MLB Players Association head Tony Clark recently offered his take on a few key labor-related issues, via Evan Drellich of the Boston Herald. In the wake of the Red Sox being punished for circumventing rules governing international amateur prospect bonuses (resulting in several players’ deals with the team being voided), Clark describes both international and domestic baseball prospect development as “the wild, wild west.” He names domestic amateur travel baseball — which he describes as both costly and time-consuming — as one problem. As Drellich notes, amateurs and minor-leaguers are not part of the players union, but they are affected by collective bargaining. “With respect to these young players, to say we are concerned about how they were treated, is an understatement,” says Clark. “So suffice it to say from start to finish we have been and continued to be engaged on everything that’s going on.”
  • The Sox did well to hang on to All-Stars Mookie Betts, Jackie Bradley and Xander Bogaerts, Peter Gammons writes. The team held onto all three despite some fans’ insistence the team make a big trade for a pitcher, and they’ve been key to the team’s resurgence this season. Of course, the Red Sox still have a need for starting pitching, partially because not enough of their prospects have developed into good back-end options. This time, though, the trade market is heavy on pitchers who don’t qualify as aces, which means that there likely won’t be much question of whether the Red Sox hold onto top prospects like Andrew Benintendi.

Manfred On Domestic Violence Policy, CBA, Qualifying Offers, Expansion

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Commissioner Rob Manfred spoke to reporters today about several topics of note. Mike Berardino of the St. Paul Pioneer-Press had all the choice quotes, and all links below are to his Twitter feed. Here are some of the highlights:

  • Manfred expects “some action” in the coming days on the league’s outstanding domestic violence matters. So far as has been publicly reported, Jose Reyes, Aroldis Chapman, and Yasiel Puig all still have open investigations pending. Their respective actions represent three rather different scenarios that will test the league’s new policy in this area.
  • The commissioner had some interesting comments on cases where there is no prosecution, as with Chapman and Puig. The policy expressly provides that league discipline can still result, and Manfred suggested the decisions of law enforcement wouldn’t make up his own mind. For one thing, he said, there are “lots of reasons for non-prosecution” and noted that the domestic violence policy “is pretty explicit” that it isn’t required. He also noted that “the standards of proof in a labor arbitration and a criminal case is very different.”
  • That’s just one of many items on Manfred’s docket, of course. The major overarching matter is the need for a new collective bargaining agreement, and Manfred said that he had a face-to-face meeting with union boss Tony Clark today to begin putting together a timeline for hammering out a new agreement.
  • One topic that’s likely near the top of Clark’s own to-do list is the functioning of the qualifying offer system. Manfred touched upon that briefly today, echoing his prior comments in favor of the system. Draft picks, he explained, are “not penalties, they’re compensation.” As for the ongoing difficulties that some QO-bound free agents have had in reaching deals, Manfred indicated that wasn’t necessarily an unexpected result. “It’s not a surprise to me given the size of the class,” he said.
  • Further down the line are considerations of expansion, which he called “important conceptually” but noted was not “an immediate issue for us.” Manfred did suggest that adding a pair of clubs was an appealing prospect. That doesn’t mean there aren’t some near-term opportunities for growth into new markets, though, as Manfred said that the league still hopes to have spring games played in Cuba this year.
  • With Jenrry Mejia receiving the league’s first lifetime PED ban, the commish acknowledged that tougher penalties won’t wipe the issue away completely. “I would like to tell [you] the problem of performance enhancing drugs is going away, but I can’t say that,” said Manfred.

Tony Clark On Qualifying Offers, Draft, Luxury Tax

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Here’s the latest from MLBPA head Tony Clark, who gave an interview to the Associated Press last week in which he articulated his positions on a number of issues that could affect the next round of CBA negotiations once the current CBA expires in December. Here are the highlights.

  • Clark expressed frustration that top players are still on the free agent market in February. (Presumably, Clark is referring to players like Ian Desmond, Dexter Fowler and Yovani Gallardo, who remain on the market after rejecting qualifying offers months ago. “I think it’s disappointing when there are as many talented players still without a home,” he said. “I don’t think it’s in anyone’s best interest to be in a world where very talented players are at home for whatever reason they are there. It will likely be a part of the conversation in bargaining.”
  • Clark also said he might be in favor of some sort of draft lottery system. As opposed to the current system, which awards draft picks merely on reverse order of record, a lottery system might somewhat disincentivize the kind of so-called “tanking” seen in recent years from teams like the Astros (who got three straight No. 1 overall picks from 2012 through 2014) and Braves. “It will be beneficial to look at that, and not look at it in a vacuum but appreciate whatever it is that we attempt to negotiate there or propose there, that it ties into the other moving pieces and doesn’t create an imbalance,” Clark said.
  • There are “very significant issues” with the idea of an international draft, Clark said, although he expects the idea will come up in CBA negotiations. (This isn’t the first time Clark has expressed doubt about the possibility of an international draft.)
  • Unsurprisingly, Clark believes the luxury tax threshold should rise. The figure remains at $189MM, and its growth has not kept pace with industry revenue. The threshold has arguably constrained player salaries, as it has likely played a role in preventing some traditional big spenders (such as the Angels) from signing key free agents this offseason.

Kris Bryant, Maikel Franco File Service Time Grievances

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A pair of outstanding rookie third basemen, Kris Bryant of the Cubs and Maikel Franco of the Phillis, have filed grievances claiming that their service time was manipulated in an effort to delay their future entry onto the free agent market, Jeff Passan of Yahoo Sports reports.

No shortage of attention will be paid to these cases. Bryant, of course, won the National League’s Rookie of the Year award, while Franco might have staked his own claim to that title had he not been injured late in the year. In that regard, then, the stakes are high for the players and teams; if a panel were to award additional service time, both would stand to qualify one year earlier for free agency.

Most important of all, however is the heightened relevance of the matter with collective bargaining talks set to begin in earnest. The matter of whether, when, and why top young players are brought up to the majors — and thus begin accruing credit for time spent on an active MLB roster — has long seemed an area ripe for consideration (if not acrimony) between the league and the player’s association.

For those unfamiliar with how things work, teams have a powerful incentive to hold back talented young players — even those they believe to be ready for the majors — to slow their march towards free agency. A less powerful, but also relevant incentive exists to keep a player down long enough to prevent them from qualifying for “Super Two” arbitration status.

A player only accrues a full season of MLB service when he reaches 172 days on the active roster (that includes off days), and it takes six full seasons of service time to reach free agency. As a practical matter, then, teams can milk nearly seven years of control over players if they just keep them in the minors for a few weeks at the start of the year.

Indeed, that’s exactly what happened with Bryant and Franco, who accrued 171 and 170 days of service last year, respectively. While there were surely legitimate baseball reasons that also supported the decisions to start those players in the minors, it’s not hard to see what line of argument their agents will pursue.

Of course, many such matters are resolved before they get to a hearing, though in these cases it would seem a creative arrangement would be necessary. It will be most interesting to see how things proceed between the larger entities with stakes in the pair of disputes: MLB and the MLBPA. The sides have about a year to negotiate a new CBA, and the service-time issue presents not only a point of possible contention, but also rather a tricky problem to solve in practice even if agreement on a general direction can be found. While bargaining could certainly override any precedent struck in a hypothetical grievance, a victory in front of an arbitration panel would transfer leverage to one side or the other.

Quick Hits: Holliday, Davis, Price, Cubs, Padres, Relievers, CBA

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In response to a reader question about Matt Holliday as a possible trade candidate, MLB.com’s Jenifer Langosch doubts the Cardinals would move a such strong bat since the team’s main winter goal is to add offense.  Langosch isn’t sure if the Cards have any interest in dealing Holliday or if he would accept a trade via his 10-and-5 veto rights.  Even at age 35 and battling injuries last season, Holliday still posted a very respectable .279/.394/.410 line over 277 plate appearances.  2016 is his last guaranteed year under contract (St. Louis has a $17MM club option on him for 2017) so it’s also not like Holliday is a long-term roadblock for the club’s upcoming young outfielders.  Here’s some more from around baseball as we look forward to leftover turkey tomorrow…

  • The Astros aren’t likely to be big players for Chris Davis, a source familiar with the situation tells Evan Drelllich of the Houston Chronicle.  Davis will command a big price and Houston already has a lot of high-power, high-strikeout hitters.  I myself speculated that Davis and the Astros could be a fit in my Astros Offseason Outlook piece, under the logic that the team needs a big left-handed bat, Davis is a Texas native and first base would be open if Chris Carter and Evan Gattis were non-tendered.  Drellich’s piece looks at that first base situation for the Astros, and the presence of prospects Tyler White and A.J. Reed might also make a Davis signing unlikely.
  • Six general managers who recently spoke with Peter Gammons believe the Red Sox will sign David Price this offseason.  “Boston will go $30-40M above anyone else” to land Price, one NL GM opines.  This is just the latest chatter connecting Price to the Sox, and while Gammons writes that “some feel he is uneasy about Boston, but David is so sophisticated, so talented and so intelligent he will make the best of any situation.”  Another GM, however, speculates that the Cardinals could be the ones to make the big play for Price, passing on re-signing Jason Heyward in the process.
  • Gammons shares some more chatter from his sources, including “a lot of John Lackey and Alex Gordon to the Cubs speculation.”
  • Recently designated players like John Axford, Daniel Nava, A.J. Griffin, Danny Hultzen and Wilin Rosario could all be intriguing targets for the Padres, Jeff Sanders of the San Diego Union-Tribune opines.  The first three are free agents, Hultzen was outrighted off the Mariners’ 40-man roster and Rosario is still in DFA limbo.
  • Fangraphs’ Eno Sarris tries to identify some of the smaller-name or underrated relief arms on the open market that could blossom into bargain pickups.  The Cubs are one example of a club that has built an entire bullpen (and a strong one, at that) out of such under-the-radar pitchers, as Sarris notes.
  • One of the underlying stories of 2016 will be the negotiations between MLB and the players union over the next Collective Bargaining Agreement, ESPN’s Jayson Stark writes.  Stark’s piece highlights some of the major issues that are likely to play a big role in the upcoming talks, ranging from revenue sharing, free agency and the qualifying offer, the length of the season, a possible international amateur draft and more.  Another interesting topic could be how the league may address teams “tanking” several seasons in an attempt to rebuild, and possible solutions include a draft lottery or a rule prohibiting teams from drafting in the top five in consecutive seasons.
  • The good news about the CBA talks is that multiple sources on both sides tell Stark that everyone wants to keep the labor peace that baseball has enjoyed for over two decades.  “It’s a 9-and-a-half-billion dollar industry.  Nobody is going to want to blow it up,” one source tells Stark.

Team Payroll Restrictions Could Be Issue In Next Round Of CBA Talks

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Team spending restrictions could be an issue in negotiations for MLB’s next Collective Bargaining Agreement, Gordon Wittenmyer of the Chicago Sun-Times writes. Specifically, the debt structure of the Ricketts family’s heavily financed purchase of the Cubs in 2009 required the team to tie baseball spending to revenues, limiting its ability to spend. Other clubs face similar restrictions.

“Cubs aside, larger picture, any time there are contractual obligations or language that affect the way a team functions, against the backdrop of the decisions that they are going to be making, against whatever restrictions are in place, we enter that equation,” says MLBPA head Tony Clark. “Rest assured, we’re interested enough to be involved in the conversation.”

MLB’s current CBA expires after the 2016 season. Wittenmyer suggests that the union’s main issue with team banking restrictions is that teams might use them as excuses not to spend.

The Cubs have operated with dramatically limited payrolls in recent years, with their Opening Day payroll falling from a high of about $144MM in 2010 to about $93MM last season (via Cot’s Contracts). Obviously, the team’s splashier 2014-15 offseason, highlighted by their signing of Jon Lester, will produce a higher payroll in 2015 (and Wittenmyer notes that the team did hold over money budgeted for 2014 to spend this winter). But team president of baseball operations Theo Epstein has emphasized that the team’s lower recent payrolls were not purely a function of the fact that the team had been rebuilding.

“We’re not withholding dollars from this year’s team. We are spending every dollar that we have on this baseball team,” Epstein said in 2013 (via David Kaplan of CSNChicago.com), when the Cubs had an Opening Day payroll about about $107MM. “We maxed out our payroll last year and we maxed out our payroll this year.”

Qualifying Offers To Be Worth $15.3MM This Offseason

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Teams wishing to make one-year qualifying players to pending free agents will have to be willing to pay them $15.3MM, the Associated Press reports (via Sportsnet.ca; h/t to Ben Nicholson-Smith). That represents an 8.5% increase over least year’s $14.1MM price tag.

The qualifying offer value is arrived at by averaging the salaries of MLB’s 125 highest-paid players. Teams may extend qualifying offers to eligible free agents-to-be within five days after the end of the World Series. Players have seven days to weigh the offer. When a player rejects the offer, his former team becomes eligible to receive an additional “sandwich” round pick in the next amateur draft, while a new signing team must forfeit their highest non-protected pick. (No draft pick movement occurs if a player re-signs with his original team.)

In order for a player to be eligible to receive a qualifying offer, the CBA states that he must have spent the entire regular season on that team’s roster. For example, Brandon McCarthy is ineligible to receive a qualifying offer after beginning the season with the Diamondbacks and being traded to the Yankees. Click here for more details on how the qualifying offer system works.

Every player made a qualifying offer to date has declined it. In the 2012-13 offseason, the first year that the QO system was in effect, nine players were made a qualifying offer and seven ultimately signed with different clubs. Last year, thirteen players turned down qualifying offers and ten went to new clubs in free agency.

As MLBTR’s Tim Dierkes explained before the 2013 season, avoiding the qualifying offer can have a major impact on a free agent’s earning capacity. That became all the more clear during the latest round of free agency, when both Stephen Drew and Kendrys Morales declined qualifying offers but were unable to find multi-year offers to their liking. The pair of veterans ultimately waited months into the season before signing, settling for one-year deals before struggling badly over the rest of the year.

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