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Collective Bargaining Agreement

MLB, MLBPA Talking Worldwide Draft

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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.

Quick Hits: Lohse, Young, Phillies, PED Supensions

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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.

Weiner On CBA, Mets, Wright

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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.

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.
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