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Collective Bargaining Agreement

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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Collective Bargaining Agreement Los Angeles Angels Los Angeles Dodgers Texas Rangers Zack Greinke

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Explaining Qualifying Offers

By Ben Nicholson-Smith | November 2, 2012 at 8:13am CDT

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.
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Collective Bargaining Agreement

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Qualifying Offers Will Be Worth $13.3MM

By Ben Nicholson-Smith | October 20, 2012 at 12:18pm CDT

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.

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Collective Bargaining Agreement

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Curtis Granderson Previews MLBPA Offseason

By Ben Nicholson-Smith | October 4, 2012 at 11:19am CDT

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.

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