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Collective Bargaining Agreement

Scott Boras, Rob Manfred Disagree On CBA

By Ben Nicholson-Smith | March 22, 2013 at 11:15am CDT

Baseball’s most prominent agent says the integrity of the sport has been damaged by its collective bargaining agreement. MLB’s top labor executive says the system works, even though one prominent player remains jobless. Within a telling piece at USA Today, Bob Nightengale reports that agent Scott Boras and MLB executive VP Rob Manfred are at odds over the current CBA. 

Boras argues that the basic agreement encourages teams to finish with poor records. The clubs that finish with the worst records are able to spend more freely on amateur players.

"The integrity of the game has been compromised,'' Boras told Nightengale. "What baseball has done, it has created a dynamic where draft dollars are affecting the Major Leaguers. Teams are constructing clubs to be non-competitive, like Houston and Miami, so they can position themselves where they can get more draft dollars. Clubs are trying to finish last to create more draft dollars. And this dramatically affects the Wild Card and Major League standings.''

Kyle Lohse, the top unsigned free agent, has suggested in recent months that the new draft pick compensation rules have limited his leverage (latest Lohse rumors here). His agent agrees. Boras argues that draft dollars are "the latest currency" for MLB general managers.

“And the best way to earn draft dollars is to sabotage your Major League team and finish last,'' he said.

In the past teams didn’t mind surrendering a first round draft pick to sign a prominent player, Boras said. The clubs could simply spend over-slot on players in later rounds, a practice that is no longer permitted in the same way.

“Now, you've taken away the structure of the scouting and developing,” Boras said. “They have stolen our youth. They have kidnapped our children in this system.''

Manfred explained that the agreement won’t be changed to accommodate one player.

"It is important to focus on all the changes to the system of draft choice compensation,'' Manfred told Nightengale. "A large number of players were freed from the burden of compensation completely, and those players undoubtedly received better contracts as a result. We have not heard anyone raising questions as to whether the system is working for those players.”

Manfred points out that with the exception of Lohse the nine players who declined qualifying offers obtained substantial contracts.

"The fact that one Scott Boras client has not signed does not convince me that the system is broken,'' Manfred said.

Agent Larry Reynolds represents B.J. Upton, another player who hit free agency after declining his former team’s qualifying offer. Reynolds told Nightengale it would be “misleading” to suggest that draft pick compensation is the lone variable that determines a free agent’s value.

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Collective Bargaining Agreement Houston Astros Miami Marlins Scott Boras

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MLB, MLBPA Talking Worldwide Draft

By Ben Nicholson-Smith | March 19, 2013 at 7:33am CDT

TUESDAY: MLB is willing to make "significant concessions" to the MLBPA in order to implement a worldwide draft, sources tell ESPN.com’s Buster Olney (Twitter links). The players could obtain an increase in minimum salary, have a lower service time threshold for arbitration eligibility and more, Olney writes.

MONDAY, 1:26pm: Rob Manfred, MLB's executive VP, said there's a chance of a deal by June 1st, Liz Mullen of the Sports Business Journal reports (on Twitter). The most likely outcomes are a single global draft or the current draft plus a second draft for international players, Mullen reports.

10:37am: Major League Baseball could have a worldwide draft in place sooner, rather than later. MLB and the MLB Players Association are pushing to strike a deal for a worldwide draft by June 1st, Eric Fisher of the Sports Business Journal reports (Twitter links). 

If the sides don’t reach a deal then expanded international spending restrictions will take effect. The possibility of increased international spending restrictions exists to encourage talks about a worldwide draft.

Amateur players from the U.S., Canada and Puerto Rico are now eligible for baseball’s Rule 4 draft, which takes place each June. Instituted in 1965, the draft does not apply to international players. Instead, amateur players from countries such as Venezuela and the Dominican Republic negotiate bonuses with teams. 

Baseball’s most recent collective bargaining agreement introduced major rule changes designed to restrict international spending.  For example, teams had $2.9MM to spend for the 2012-13 signing period. Though MLB and the MLBPA announced the five-year Basic Agreement just over a year ago, the sides acknowledged from the beginning that talks for a worldwide draft could take place before the expiration of the CBA.

Commissioner Bud Selig has consistently expressed public support for the worldwide draft. The implementation of a worldwide draft has the potential to limit expenses for the owners without presenting a direct threat to the earning potential of MLBPA members.

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2013 Amateur Draft Collective Bargaining Agreement

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Quick Hits: Lohse, Young, Phillies, PED Supensions

By Steve Adams | February 25, 2013 at 11:53pm CDT

In 2008, Kyle Lohse waited until March to sign and landed in the place he'd call home for five seasons — St. Louis. Spring Training is underway again, and Lohse again remains unsigned. However, unlike 2008 when he had a career 4.82 ERA, Lohse is coming off a 3.11 ERA over his past 399 1/3 innings. ESPN's Buster Olney talked to a longtime MLB evaluator who says in addition to draft pick compensation, AL teams are wary of Lohse's poor AL track record. The evaluator also added that teams shy away former Cardinals pitchers, as they often struggle to find success elsewhere (Twitter links).

More from around the Majors…

  • Phillies ace Cliff Lee told Jayson Stark of ESPN that he was "baffled" by the way the Rangers treated Michael Young in his final years with the team. Lee called Young the "perfect teammate" and the "heart and soul" of the Rangers team. "…in my opinion, you want guys like Michael Young around," said Lee, who was reunited with his former teammate after the Phillies traded for him this winter.
  • Both Ryan Howard and Jimmy Rollins have offered strong praise for Phillies prospect Domonic Brown this Spring, writes David Murphy of the Philadelphia Daily News. Murphy opines that both players feel this is the time to finally give Brown a chance to be an everyday Major Leaguer.
  • Michael Weiner, the exeutive director of the MLB Players Union, spoke with reporters (including Shi Davidi of Sportsnet.ca) about drug testing and the possibility of more severe punishment for players who have been discovered to have multiple offenses in the past. Weiner discusses the fine line between representing players who are subject to discipline and attempting to enforce a clean game. Weiner also says that after Spring Training, there will be discussions about whether or not the new qualifying offer system is working as intended, given the damage to Lohse's market.
  • Former Twins, Rangers and Astros minor leaguer Mark Hamburger has been suspended for 50 games after testing positive on two instances for recreational drug use, according to Baseball America's Matt Eddy. Hamburger, a free agent after being released by Houston earlier this month, would have to serve out his suspension upon signing with a new team.
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Collective Bargaining Agreement Philadelphia Phillies Texas Rangers Domonic Brown Kyle Lohse Michael Young

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Weiner On CBA, Mets, Wright

By Ben Nicholson-Smith | February 21, 2013 at 10:30am CDT

MLBPA executive director Michael Weiner addressed reporters at Mets camp today, discussing draft pick compensation and the Mets’ franchise player. Here are some details (all Twitter links)…

  • Weiner said he expects to discuss draft pick compensation with MLB before the current collective bargaining agreement expires, Andy Martino of the New York Daily News reports. It sounds as though the MLBPA would like to consider changes to the system that affected the leverage ofplayers such as Michael Bourn and Kyle Lohse. "The compensation affected those guys fairly dramatically this year, and we would like to try to address that,” Weiner said.
  • Weiner said he hopes the Mets spend more, as chairman & CEO Fred Wilpon has said they will (via Mike Puma of the New York Post). "I think everybody would like to see the Mets as a competitive team, and it's going to require a higher payroll,” Weiner said.
  • David Wright knew that he would have been a highly coveted free agent if he didn’t sign with the Mets long-term, Weiner said (via Anthony DiComo of MLB.com). "David understood that if he went out to market he’d probably make more money, and perhaps substantially more money," Weiner said. Wright signed an eight-year, $138MM extension with the Mets in December.
  • Adam Rubin of ESPNNewYork.com notes that MLBPA exec Bobby Bonilla collects more money from the Mets than any of their current outfielders. Bonilla, who spent parts of five seasons with the Mets, still collects deferred payments from the club.
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Collective Bargaining Agreement New York Mets David Wright Kyle Lohse Michael Bourn

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Rosenthal On CBA

By Ben Nicholson-Smith | February 13, 2013 at 9:00am CDT

Though MLB and the MLBPA finalized baseball’s current collective bargaining agreement during the 2011-12 offseason, some elements of the CBA didn’t take effect until this winter. This means the 2012-13 offseason has been the first full winter under the sport’s new CBA. So far, it’s turning out better than many anticipated, according to Ken Rosenthal of FOX Sports. Here are some details from Rosenthal:

  • The CBA has led to uncharacteristic caution from the Yankees while creating incentives for many other teams to spend. The agreement’s market-disqualification program encourages large market teams such as the Blue Jays, Braves and Nationals to spend. As Rosenthal explains, those teams are seeing their revenue sharing proceeds diminish. This change encourages the clubs to spend and generate revenue with on-field success.
  • The MLBPA would love to eliminate draft pick compensation, as Rosenthal notes. However, the new CBA reduced the number of players linked to compensation. And those connected to draft picks such as Michael Bourn, Nick Swisher and Rafael Soriano are signing lucrative deals. 
  • MLBTR's Tim Dierkes recently examined the effect the qualifying offer had on teams and free agents. Check out Tim's post for the thoughts of MLB execs and agents on the new system.
  • Indians front office executives encouraged ownership to spend on Bourn, explaining that it could be a while before a similarly appealing opportunity emerged.
  • Many executives consider the recently-imposed amateur spending limits counter-productive, Rosenthal reports.
  • MLB has “no intention” of changing the rule that protects the top ten selections in the draft (Twitter links). The Mets were considering challenging the rule and arguing that they should have a protected 11th overall selection after finishing with one of the ten worst records in baseball. The language in the CBA on the matter is clear in MLB’s view.
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Cleveland Guardians Collective Bargaining Agreement Michael Bourn

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Rosenthal On Tigers, Diamondbacks, Bourn

By Ben Nicholson-Smith | January 25, 2013 at 8:10am CDT

Two of the biggest MLB stories to emerge recently are the Justin Upton trade and the Mets’ interest in Michael Bourn. Ken Rosenthal of FOX Sports weighed in on both subjects in recent columns. Here are some highlights:

  • The Tigers like shortstop prospect Nick Ahmed and wanted him as part of a package for Rick Porcello, Rosenthal reports. Those talks would have made yesterday’s trade with the Braves a three-team deal. However, Arizona GM Kevin Towers suggested to the media yesterday that he’s comfortable with his starting pitching depth after acquiring Randall Delgado from the Braves.
  • The Mets would have the support of the MLBPA if they continue lobbying for the right to surrender a second round pick instead of a first rounder should they sign a free agent linked to draft pick compensation. But sympathy for the Mets would only go so far just one offseason after the completion of baseball’s collective bargaining agreement. MLB wouldn’t want to establish a precedent and would likely fight a grievance by the MLBPA, Rosenthal reports. 
  • Scott Boras, Bourn’s agent, is a factor in this as well, Rosenthal reports. MLB isn’t inclined to do Boras any favors such as making an exception for Bourn.
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Arizona Diamondbacks Collective Bargaining Agreement Detroit Tigers New York Mets Michael Bourn Rick Porcello Scott Boras

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Quick Hits: Mariners, Lohse, Soriano, Gerut

By Ben Nicholson-Smith | January 7, 2013 at 11:39pm CDT

Kyle Lohse placed tenth on MLBTR's list of the offseason's top free agents, a reflection of the fact that Tim Dierkes expects the right-hander to help his next team. But unless something has changed in the last three days, Lohse hasn't received a single contract offer this winter. He’s tied to draft pick compensation after turning down a qualifying offer, and that has no doubt limited his leverage. Jeff Sullivan of FanGraphs argues that the hate has gone too far, showing convincingly that Lohse adds value at the plate, on the field and, of course, as a pitcher. Here are more links from around MLB…

  • The Mariners would like to add a lefty to the rotation to replace Jason Vargas, but don't expect it to be Joe Saunders or Erik Bedard, writes MLB.com's Greg Johns in a Mariners Inbox piece. If a lefty joins the rotation, it's more likely to be one of Seattle's top prospects like James Paxton or Danny Hultzen.
  • It’s still early to be assessing the way the new collective bargaining agreement shapes the market for free agents such as Lohse, Ken Davidoff of the New York Post writes. While the market for certain players linked to draft pick compensation does seem slow, Davidoff points out that every one of these players declined a $13.3MM qualifying offer.
  • Bob Klapisch of the Bergen Record hears that agent Scott Boras asked the Yankees last month if they'd consider re-signing free agent closer Rafael Soriano to a one-year contract (Twitter link). The Yankees flatly denied the request, Klapisch writes. ESPN.com's Buster Olney says the Yankees prefer the value of the draft pick and accompanying spending limit increase to the on-field value of Soriano (Twitter link).
  • Former MLB player Jody Gerut is working to reduce athlete bankruptcy in his new role as an agent with Wasserman Media Group, Anthony Castrovince of MLB.com reports. Gerut's focusing on educating athletes, particularly Latin Americans, about how to manage their finances.
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Collective Bargaining Agreement New York Yankees Seattle Mariners St. Louis Cardinals Erik Bedard Jody Gerut Joe Saunders Kyle Lohse Rafael Soriano

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Quick Hits: Upton, Liriano, Orioles, Headley

By Ben Nicholson-Smith | January 4, 2013 at 4:40pm CDT

Rob Manfred, MLB’s executive VP of labor relations, told Ken Rosenthal of FOX Sports that he’s not ready to say baseball’s collective bargaining agreement needs changes. While the CBA appears to have limited the market for certain players who declined qualifying offers, Manfred says it’s still early. “I’m not inclined to get into a discussion about changing an agreement when it hasn’t even operated for a full year.” As Rosenthal points out, draft pick compensation places an artificial burden on free agents. Here are some more links from around MLB…

  • The Rangers aren’t a perfect fit for Justin Upton, because their lineup already includes many right-handed hitters, ESPN.com’s Buster Olney notes (Twitter links). The Braves could be a better fit, and could deal from a surplus of pitching. Olney reported yesterday that the Diamondbacks are open to dealing the right fielder.
  • The Pirates haven’t announced their two-year, $12.75MM agreement with Francisco Liriano, but MLB.com’s Tom Singer still expects the deal to go through (Twitter link). The Pirates have been trying to get the left-hander to Pittsburgh for a physical.
  • The Orioles have not watched free agent right-hander Javier Vazquez work out and they have no current plans to attend any of his scheduled sessions, Roch Kubatko of MASNSports.com reports (on Twitter). That said, Eduardo A. Encina of the Baltimore Sun suggested today that the Orioles could have some interest (Twitter link).
  • Within an in-depth piece about third baseman Chase Headley, Padres GM Josh Byrnes revealed to MLB.com's Corey Brock that he pushed for the Red Sox to draft Headley back in 2005 when he was in the Boston front office. Headley, 28, is arbitration eligible for the third time this offseason.
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Arizona Diamondbacks Atlanta Braves Baltimore Orioles Collective Bargaining Agreement Pittsburgh Pirates San Diego Padres Texas Rangers B.J. Upton Chase Headley Francisco Liriano Javier Vazquez Justin Upton

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Olney On Soriano, LaRoche, Braves

By Ben Nicholson-Smith | December 19, 2012 at 4:45pm CDT

Baseball’s most recent collective bargaining agreement introduced new rules regarding draft pick compensation, and the changes were expected to help free agents. However, ESPN.com’s Buster Olney reports that some agents and general managers say certain free agents who obtained qualifying offers are now seeing reduced interest from teams. These players are talented, but general managers are hesitant to give up draft picks. Here are more notes from Olney’s column…

  • One GM pointed out that teams aren’t “wild about giving up a draft pick for a reliever," even though Rafael Soriano is a good pitcher. The Yankees almost certainly won’t consider taking him back, according to Olney.
  • The Red Sox have targeted players who aren’t linked to draft pick compensation, as Olney points out.
  • Adam LaRoche is tied to draft pick compensation and it’s “really hurting him,” Olney writes. The first baseman has been sitting on a two-year offer from the Nationals.
  • It appears that the Braves would be fairly comfortable going into the season with Martin Prado playing both left field and third base. They’d use Reed Johnson in left field against left-handers and Juan Francisco at third base against right-handers in that scenario.
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Atlanta Braves Boston Red Sox Collective Bargaining Agreement New York Yankees Washington Nationals Adam LaRoche Martin Prado Rafael Soriano

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Rosenthal On Greinke, Free Agency, Trades

By Ben Nicholson-Smith | November 2, 2012 at 12:56pm CDT

With a national television deal in place and labor peace established, MLB teams are ready to spend. Some people in the commissioner’s office are nervous about the possibility of more lavish free agent contracts, Ken Rosenthal of FOX Sports reports. Here are more notes from Rosenthal on the day before free agents can sign with any team…

  • The Angels want to sign Zack Greinke, but so do their biggest rivals, the Dodgers and the Rangers.
  • Rosenthal points out that the offseason could unfold more quickly this year, partly because of the new MLB calendar. Teams won’t have to wait as long to determine which free agents are linked to draft pick compensation, which should accelerate the free agent market. I discussed the possibility in this week’s MLBTR chat.
  • Rosenthal expects almost every free agent who receives a qualifying offer to reject it.
  • MLB officials expect the trade market to remain “hot” throughout the winter, according to Rosenthal.
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