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Collective Bargaining Agreement

Rosenthal On CBA

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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.

Rosenthal On Tigers, Diamondbacks, Bourn

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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.

Quick Hits: Mariners, Lohse, Soriano, Gerut

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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.

Quick Hits: Upton, Liriano, Orioles, Headley

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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.

Olney On Soriano, LaRoche, Braves

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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.

Rosenthal On Greinke, Free Agency, Trades

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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.

Explaining Qualifying Offers

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For the first time since baseball’s collective bargaining agreement was finalized, teams, agents and players will navigate a new system for determining free agent compensation: qualifying offers. The offers are due today, so there’s no better time for a refreshed primer. Here’s a look at draft pick compensation under the sport’s new CBA:

  • Type A and Type B designations have been eliminated. Instead, teams will have to make players a qualifying offer to be eligible for draft pick compensation. 
  • The value of the qualifying offer, which is determined annually by averaging the top 125 player salaries from the previous year, will be worth $13.3MM this offseason. All qualifying offers are for the same duration (one year) and the same amount ($13.3MM for 2012-13). 
  • Teams have until five days after the World Series to make qualifying offers. At that point the players have seven days to accept.
  • Once a team makes a qualifying offer, the player has two choices: he can accept the one-year deal or decline in search of other offers. If he declines the offer and signs elsewhere, his new team will have to surrender a top draft pick (the selection doesn't go to the player's former team). 
  • Teams that sign free agents who turned down qualifying offers will surrender their first round picks. However, the forfeited picks don't go to other MLB teams. Instead, the first round simply becomes condensed.
  • The first ten selections in the draft are protected. Teams with protected picks will surrender their second-highest selections. The Astros, Cubs, Rockies, Twins, Indians, Marlins, Red Sox, Royals and Blue Jays have protected first round picks this offseason. The Pirates' ninth overall selection (compensation for failing to sign their 2012 first rounder) is also protected.
  • The player’s former team will receive its compensatory selection at the end of the first round. Teams now obtain one compensatory selection, instead of two.
  • If teams don’t make a qualifying offer, the player can sign uninhibited.
  • Only players who have been with their clubs for the entire season will be eligible for compensation. So Zack Greinke and Shane Victorino definitely aren’t getting offers.
  • Check out Tim Dierkes’ preview of which players will get qualifying offers from earlier in the week.

Qualifying Offers Will Be Worth $13.3MM

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OCTOBER 20: It has been determined that qualifying offers need to be worth $13.3MM this offseason, reports Jon Heyman of CBSSports.com (on Twitter).

AUGUST 1: Qualifying offers for free agents will be in the $13.3-$13.4MM range, ESPN.com's Buster Olney reports (on Twitter). The value of the qualifying offers is based on the salaries of the 125 best-paid MLB players, and had been expected to fall in the $12.5MM range.

Teams must make free agents qualifying offers to be eligible for draft pick compensation. Teams obtain one supplementary round draft pick if a player turns down a qualifying offer to sign elsewhere. I explained qualifying offers in detail earlier this year.

Mike Axisa contributed to this post.

Curtis Granderson Previews MLBPA Offseason

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Curtis Granderson capped off the 2012 season with a two-home run effort at Yankee Stadium yesterday, as New York beat Boston 14-2 and clinched the American League East title. His season isn’t over yet — the Yankees will play in the Division Series starting this weekend — but for most of his peers in the MLB Players Association it’s time to look ahead ahead to the offseason. Granderson, a prominent member of MLBPA's Executive Board, expects this winter to unfold more quietly than last it did a year ago, when the players and owners negotiated a new collective bargaining agreement.

Curtis Granderson - Yankees (PW)

“All the main things that needed to be discussed happened last year,” Granderson told MLBTR this past weekend. “There won’t be any big, major holdups — just a few things to try to iron out that could start this year that may not finish up for the next couple of years. It’ll just be a lot of discussion.”

The talks will have a different tone this offseason. Though baseball’s players and owners negotiated their current CBA without any of the public bickering that has accompanied recent labor discussions in the NFL, NBA and NHL, tense moments are bound to occur while determining the financial structure of a $7 billion industry. Now that major issues such as the luxury tax, the amateur draft and revenue sharing have been resolved through 2016, the MLBPA can focus on other details.

“Obviously there are always issues each year that arise and different things from new helmet regulations, pace of game, different things with performance enhancing drug issues that we’ve had this year, scheduling with another team going to the American League, Interleague Play starting in the first week of the season,” Granderson said. “So just little things like that, but nothing major.”

Granderson, one of two association representatives for the MLBPA (Jeremy Guthrie of the Royals is the other), will keep in contact with his fellow players via phone calls and text messages over the course of the coming offseason. When a major issue emerges, the MLBPA attempts to reach as many players as possible.

“We have ways of getting in touch with everybody,” Granderson said. “Pretty quickly now, especially with everybody having a cell phone no matter where they happen to be in the world.”

When he’s not communicating with other MLB players, Granderson stays informed on labor unrest in other sports. Former MLBPA Executive Director Don Fehr represents NHL players in the current lockout, and Granderson, who worked a bit with Fehr in the past, has monitored talks with an outsider’s perspective.

“I’m still a fan,” he said. “I like watching those games and whenever they get the chance to go back out there, hopefully everybody’s taken care of.”

For now baseball players don't have major labor concerns of their own, which means fewer distractions for Granderson as the Yankees prepare for another postseason run.

Photo courtesy of US Presswire.

Bottom Nine Teams Obtain Protected Picks

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For MLB teams to obtain a protected first round draft pick in 2013, they will have to finish this year with one of the nine worst records in baseball. Though the top ten draft choices are protected under the sport’s new collective bargaining agreement, one of those selections will go to the Pirates, who did not sign their 2012 first round pick, Mark Appel. This means the nine teams with the worst records in baseball will have protected first round selections in 2013, MLB confirmed to MLBTR.

MLB determines the order of its amateur draft by upending the order of the previous year’s standings. As MLBTR’s Reverse Standings page shows, the Astros, Cubs, Rockies, Twins, Indians, Marlins, Blue Jays, Red Sox and Royals would obtain protected draft picks if the season ended today. The Mets, Marlins and Padres could obtain protected draft picks depending on the results of the season’s final week.

Teams must forfeit a draft pick to sign a free agent who declined a qualifying offer from his former club. If a team's first round pick is protected, the team will forfeit its next highest selection.

“A Club that signs one Qualified Free Agent who is subject to compensation shall forfeit its highest available selection in the next Rule 4 Draft,” the CBA reads. “Notwithstanding the above, a Club shall not be required to forfeit a selection in the top ten of the first round.”

Top first round selections are especially valuable under baseball’s CBA. Not only does a top-ten draft choice provide teams with a wider selection of players, it assures them of a protected pick, regardless of what happens in free agency. 

While the top ten selections cannot be forfeited as draft pick compensation, picks from 11 on are vulnerable. This year finishing with the tenth-worst record in MLB won't be enough to obtain a protected pick.

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