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Collective Bargaining Agreement

International Draft Presents Key Topic Of Discussion In CBA Talks

By Anthony Franco | March 8, 2022 at 11:46pm CDT

11:46 pm: Nicholson-Smith reiterates that the international draft has become a key sticking point (Twitter links). He hears that the league considers it a crucial feature of any agreement but the union still has concerns about its inclusion in a deal.

11:26 pm: Jon Morosi of MLB.com tweets that the league has indeed received the MLBPA’s counterproposal and is currently reviewing it.

11:20 pm: Chelsea Janes of the Washington Post tweets that both the league and union are meeting amongst themselves at the moment. The plan is to continue negotiations even though MLB’s imposed midnight deadline has passed on the East Coast. It’s not known whether the union has yet officially made its counteroffer.

10:14 pm: Nicholson-Smith hears that the union has discussed the possibility of lowering its demand on the pre-arb bonus pool to $70MM this season, followed by $5MM raises annually. That’d still be a rather significant gap above the league’s proposed flat $40MM mark, although it’d be down $10MM — the same amount of MLB’s most recent move — from its last offer.

10:10 pm: Ben Nicholson-Smith and Shi Davidi of Sportsnet report (Twitter links) that some players are “encouraged” by the league’s movement on core economics. However, the union has expressed concern about the possibility of an international draft, which would inherently involve those players no longer getting a choice of their first employer. That’s been of particular concern to some Latin American players, according to Sportsnet.

Jon Heyman of the MLB Network reports that the union will soon send back a counteroffer, with multiple reports indicating tonight’s discussions could carry over into the early morning hours. Nicholson-Smith describes the international draft/qualifying offer as the biggest obstacle, hearing that the sides are “close” on the numbers for things like the CBT and pre-arb bonus pool (Twitter links).

9:35 pm: Sawchik adds that the “gap has closed” today, but he cautions there are “still issues to work through.” Michael Silverman of the Boston Globe tweets that some on the players’ side don’t believe a deal is close to being finalized. The union is still reviewing the terms of the league’s offer.

9:17 pm: MLB’s proposal contained a 12-team postseason field, reports Travis Sawchik of the Score (on Twitter). The union was only amenable to a 14-team playoff that would’ve introduced the “ghost win” for division winners, according to Sawchik, an idea that proved a non-starter for the league.

8:44 pm: Drellich and Ken Rosenthal report that the league has proposed a bonus pool that would hold flat at $40MM each season throughout the terms of the CBA. That’d involve a $1.33MM annual payment from each of the league’s 30 teams, which would be counted against every club’s luxury tax calculations. The Athletic also reports the year-over-year breakdown the league is offering on both the base tax threshold and the league minimum salary (annual CBT and minimums, respectively):

2022: $230MM, $700K
2023: $232MM, $715K
2024: $236MM, $730K
2025: $240MM, $750K
2026: $242MM, $770K

Additionally, Drellich and Rosenthal report a pair of the important conditions the league has attached to its most recent proposal (Twitter links). Most notably, MLB is hoping to introduce a fourth level of penalization to the luxury tax thresholds. Under the last CBA, there was a base tax threshold (set at $210MM in 2021) followed by levels of surcharge taxes for clubs that a) exceeded the tax by between $20MM and $40MM and for b) clubs that exceeded the tax by more than $40MM, with clubs greater penalties for reaching each tier. The league’s latest proposal would add a third surcharge level for teams that go more than $60MM above the base tax marker (with presumably even more penalties) in an obvious effort to curtail teams from blowing by the thresholds, as the Dodgers did last year and as many believe the Mets are prepared to do in 2022.

Additionally, MLB is tying the introduction of an international draft to the elimination of the qualifying offer. Removing draft pick compensation for signing free agents has been a goal of the union’s throughout the process. Drellich hears that MLB is also pursuing expedited authority for all rules changes, which would only be made over an offseason.

The Athletic reports a few more minor provisions of the league’s last offer. MLB is willing to make the first six picks of the domestic amateur draft determined by lottery — it had previously been at five — with limits on how many consecutive seasons a club could be eligible based on market size. The league’s proposal would also include a limit on the number of times a player can be optioned to the minors within a season (five), would grant a full year of service time to the top two finishers in Rookie of the Year voting and would award teams additional draft picks for carrying high-performing players on their Opening Day rosters.

7:57 pm: Yesterday, Major League Baseball set tonight as its latest deadline for a new collective bargaining agreement to preserve a 162-game schedule. The league and Players Association have been meeting throughout the day. The tenor and specifics of those conversations has been kept relatively quiet, although some details have begun to trickle out.

Most notably, Evan Drellich and Andy McCullough of the Athletic report (on Twitter) that the league has offered a small bump on the competitive balance tax. The league is now offering to set the base CBT threshold at $230MM in 2022 and would see that figure rise to $242MM by the end of a five-year CBA. That’s up $2MM in Year One and $4MM by 2026 relative to the league’s offer yesterday. Whether the union has moved on the tax today isn’t clear; previously, the MLBPA had sought a $238MM figure for the upcoming season that would rise as high as $263MM by the end of the CBA term.

That would appear to be a minor move in the players’ favor on the surface, although Drellich cautions the rest of the league’s offer is unclear. Yesterday’s proposal of a $228MM base tax marker was said to come with “major strings attached,” and The Athletic reports today that MLB’s offer contains “other issues players are concerned with.”

Without knowing the full terms of the league’s offer, it’s impossible to hypothesize whether the sides are making progress towards any sort of agreement. In addition to the CBT, prominent topics of discussion include the expanded playoff field, the extent of a bonus pool to award excellent pre-arbitration players, and the league’s desire to institute a draft for international amateurs. MLB has also pushed to expedite the process by which it could implement on-field rules changes.

The union agreed last week to give the league authority to more quickly implement a few specific changes — namely a restriction on defensive shifts, larger bases and a pitch clock. However, MLB is seeking broad autonomy to unilaterally implement any on-field rules alteration within 45 days of informing the union. Russell Dorsey of Bally Sports tweeted this afternoon that expedited window was among the conditions attached to the league’s willingness to move the luxury tax upwards (although it’s unlikely to be the only tradeoff).

Dorsey also adds that the league may be targeting some form of “penalty for excessive spending.” What form that would take isn’t clear, although the union adamantly pushed back against the league’s push earlier in negotiations for stricter penalties for teams that exceeded the luxury tax. MLB agreed to take those off the table, but it’s possible the league is hoping to reintroduce something to that effect in exchange for an increase in the thresholds themselves.

Regarding the bonus pool, there was an immediate $50MM gap at last check. MLB had offered to allocate $30MM annually to that system throughout the term of an agreement. The union sought $80MM for that pool in 2022 and wanted that figure to rise by a few million dollars each year thereafter. Dorsey hears the league could be willing to go to $50MM on the bonus pool but is tying that to the union signing off on a 14-team postseason. The MLBPA has expressed amenability to a 14-team playoff but would prefer a 12-team system, and it’s not clear MLB moving from $30MM to $50MM on the bonus pool would be a sufficient enough incentive in the union’s eyes.

The parties continue to discuss these issues in an attempt to close the gap tonight. The league has already canceled the first two series of the regular season. It indicated those games could be made up in the event of an agreement today, but MLB has suggested another week’s worth of games would be scrapped if the parties don’t come to terms in the coming hours.

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MLB Launches Fund For Spring Training Workers Impacted By Canceled Games

By Steve Adams | March 8, 2022 at 10:21am CDT

Major League Baseball announced Tuesday that it has launched a $1MM fund to help support Spring Training workers who have been impacted by the cancellation of Grapefruit League and Cactus League games. Funds will be issued by clubs based on individual need, and will be available to part-time and seasonal workers, including concession workers, grounds crew, security, clubhouse operators, general ballpark operators and game operators.

“We know that our sport is facing a challenging time as we work toward a new collective bargaining agreement,” commissioner Rob Manfred said in a statement announcing the fund. “Regrettably, the people who make Spring Training a first-class experience for our fans have been affected through no fault of their own. As an institution, Major League Baseball and our Clubs remain committed to supporting our most vulnerable staff. We hope this fund will alleviate some of the financial concerns they have faced due to missed Grapefruit and Cactus League games this spring.”

MLB’s press release indicates that an additional fund will be established for seasonal and part-time employees who will be impacted by the potential loss of regular-season games as well. The MLBPA established a $1MM fund last Friday to support stadium workers who will be impacted by the cancellation of regular-season games.

The league and the union are set to continue negotiations today. Major League Baseball has characterized today as yet another deadline, suggesting that a 162-game season cannot be played if no deal is reached Tuesday.

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MLB, MLBPA Continue Negotiations; MLB Suggests Tuesday As Latest Deadline For 162-Game Season

By Anthony Franco | March 8, 2022 at 9:35am CDT

March 8: SNY’s Andy Martino tweets that MLB’s most recent proposal does not include any movement on the pre-arbitration bonus pool. The league is still offering a flat $30MM pool with no increases over the five-year term of the agreement. The MLBPA had lowered its ask from a $115MM peak to $80MM at last check, though the union was also believed to be seeking annual increases to the size of the pool.

March 7, 10:52 pm:  Jeff Passan of ESPN writes that if an agreement were to come together Tuesday, Spring Training camps could open as soon as Friday. However, he cautions that the gaps between the two sides remain significant enough to “temper expectations” about a deal coming to fruition.

8:50 pm: MLB offered to raise the base luxury tax threshold to $228MM next season, with that figure rising to $238MM over the course of the CBA, Drellich reports. That’s a fairly notable jump over MLB’s previous offers to start that mark at $220MM and rise to $230MM by 2026, and it’d be an $18MM year-over-year jump from last season’s $210MM mark.

However, Drellich cautions that the league’s offer to move on the CBT came with “major strings attached.” Those conditions aren’t clear, although MLB has sought a 14-team playoff field and a draft for international amateurs in past proposals and could again be trying to get the MLBPA’s approval on either or both topics. The union has been seeking to increase the CBT to $238MM next season and move to $263MM by the end of the CBA.

8:29 pm: After yesterday’s proposal from the MLB Players Association to the league was met with hostility, lead negotiators reconvened today, reports Evan Drellich of the Athletic (Twitter link). They’re expected to meet again Tuesday, and MLB has suggested those discussions could be of particular importance.

Drellich reports that the league views tomorrow as the deadline for a new collective bargaining agreement to be in place to conduct a 162-game season (and with it, a full year of salary and service time for players). He and colleague Ken Rosenthal add that the league has informed the union it expects to cancel another week’s worth of games if no deal is done. Commissioner Rob Manfred already announced the cancelation of the first two series of the regular season last week, and the league had previously been adamant those games would not be made up. It now seems MLB is willing to entertain that possibility, although only if a new CBA is finalized on Tuesday.

This marks at least the second (arguably the third) time the league has imposed a deadline for an agreement to avoid the loss of regular season games. MLB had previously set February 28 at 11:59 pm EST as a marker to avoid delays to Opening Day. With the parties beginning to close the gap in negotiations that evening, the league pushed back that deadline to March 1 at 5:00 pm EST. Ultimately, no agreement was reached — the league claimed the union upped its demands overnight, while the MLBPA accused the league of exaggerating the previous night’s progress in the first place — and Manfred announced the cancelation of the first two series that evening.

The union expressed its displeasure with that decision. MLB had unilaterally instituted the lockout and set the end of February deadline for an agreement, while the MLBPA maintained that further negotiations should proceed without game cancelations. It’s not clear whether the union views tomorrow’s league-imposed deadline in the same manner. We’re a bit more than three weeks from the originally scheduled Opening Day, March 31. It seems likely that with those first two series already canceled, the path to 162 games would involve reworking the schedule and/or instituting doubleheaders rather than simply putting those games back on the docket.

Even if the lockout lingers to a point where everyone agrees a 162-game season is unfeasible, it stands to reason the union would embark on some efforts to recoup pay and service time lost. MLB instituted the lockout, after all, and their initial game cancelations were imposed over the objections of the union. MLBPA lead negotiator Bruce Meyer stated in the immediate aftermath of Manfred’s announcement it was the union’s position that players should receive compensation for games lost. As MLBTR’s Steve Adams noted last week, a battle regarding service time could be even more important than any dispute over pay.

Whether the parties will be able to come to an agreement tomorrow remains to be seen, but the recent tenor hasn’t been promising. There’s still a sizable gap on issues such as the competitive balance tax and the bonus pool for pre-arbitration players. Rosenthal wrote yesterday the league is willing to move in the players’ favor on the CBT in exchange for concessions by the union in other areas, but MLB’s other demands aren’t clear.

The league presented a formal counterproposal to the PA’s most recent offer at today’s call, reports Bob Nightengale of USA Today (Twitter link). According to Nightengale, that “(included) flexibility on several issues,” but it doesn’t seem the union viewed it that favorably. One player involved in discussions tells Rosenthal the offer remained too tilted towards MLB’s interests, while another said he was “done getting (his) hopes up” for an agreement.

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Details On MLBPA’s Latest Offer To League

By Mark Polishuk | March 6, 2022 at 10:45pm CDT

9:25 pm: Ken Rosenthal of The Athletic reports that the league is willing to increase the first CBT threshold if the union makes concessions in other areas. The most recent negotiations have had the owners unwilling to raise the threshold beyond $220MM with the players trying to push it to $238MM. Even that $220MM has been difficult for the owners, as four of them voted against that offer.

In order to bridge that gap, Rosenthal says the owners would want “a variety of adjustments,” which would include the players lowering their ask on the bonus pool for pre-arbitration players. The players did indeed drop their ask on the pool in their proposal today, from $85MM to $80MM, but a further reduction would apparently be necessary in order to get the league to budge on the CBT issue. Furthermore, Rosenthal adds that the league “would want the union to accept a streamlined process for implementing rules changes beyond the 2023 season.” This would apparently go beyond what the union already agreed to earlier today, as Rosenthal writes that “The league wants the ability to make other changes for subsequent years within 45 days of the end of a season. Such changes would be implemented upon the recommendations of a competition committee composed of more league than union representatives, effectively giving commissioner Rob Manfred the power to act as he chooses.”

3:59 pm: Bob Nightengale tweets that the union disputes MLB’s characterization of the situation, listing several concessions they have made.

3:40 pm: Bob Nightengale of USA Today reports that the sides could meet again as soon as Monday, with the league expected to announce further game cancellations.

3:28 pm: MLB spokesperson Glen Caplin responded to today’s meeting, with James Wagner of the New York Times providing the full quote on Twitter:

“We were hoping to see movement in our direction to give us additional flexibility and get a deal done quickly. The Players Association chose to come back to us with a proposal that was worse than Monday night and was not designed to move the process forward. On some issues, they even went backwards. Simply put, we are deadlocked. We will try to figure out how to respond, but nothing in this proposal makes it easy.”

The use of the word “backwards” is a bit confusing on its face, given that the union made notable concessions on some of the issues detailed below. However, Wagner elaborates in another tweet that “MLB felt that things were suggested verbally in Florida on Monday, such as the size of the pre-arbitration bonus pool being smaller than $80M, that weren’t reflected in today’s offer,” and that is why they characterized today’s written proposal as going “backwards.” The MLBPA denies moving backward from any verbal offer.

1:20 pm: Representatives from the league and the MLB Players Association met today in New York, with the union bringing both some written responses and counter-proposals to the owner’s most recent collective bargaining agreement offer.  Today’s negotiating session lasted around an hour and 40 minutes, and details have begun to emerge (from The Athletic’s Evan Drellich and The Washington Post’s Chelsea Janes) about the union’s latest proposal.

Perhaps the most notable difference is that the players agreed to give the league the authority to make on-field changes within a 45-day window of initial proposal, in regards to three specific rules — a pitch clock, restrictions on the use of defensive shifts, and the size of the bases.  The last CBA gave the league the ability to implement rule changes a full year after an initial proposal to the union, and reports recently emerged that the owners were looking to drastically shorten that period of time in this latest agreement.

Any of the proposed rule changes would be explored via a committee that would have player representation.  The three proposed rule changes would begin in the 2023 season.  One other rule change that the MLBPA did decline was in regards to the “robo-ump,” or an automated system for calling balls and strikes.

The players had been seeking an $85MM bonus pool for pre-arbitration players, though that number has now been dropped slightly to $80MM.  It should be noted that this would be the starting price for a pool that would be expected to gradually increase over the five-year span of the CBA, and presumably those increases are still part of the latest proposal.  The drop to $80MM probably isn’t too likely to get the league’s attention, as the owners have been open to the idea of a bonus pool, though at the much lower price of a flat $30MM pool for each of the next five seasons.

Should teams surpass the various tiered thresholds of the luxury tax, the league had been proposing methods of punishment beyond just a financial penalty, such as the last CBA’s penalties of moving a team’s top draft pick back 10 slots if they exceeded the tax threshold by more than $40MM.  The MLBPA had been resistant to such “non-monetary penalties” as Drellich called them, but the union has now okayed some similar type of punishment in exchange for the elimination of the qualifying offer.  The league had previously floated the idea of eliminating the QO, so teams who sign particular free agents would no longer have to give up draft picks as compensation, though the teams that lost said free agents would still get a pick.

In regards to the larger and more thorny issues of the luxury tax thresholds themselves, the union made no changes to their past proposal.  As well, the MLBPA stood by their previous demands for an increased minimum salary.  The concept of an expanded postseason continues to factor into negotiations, yet while the union had been open to a 14-team playoff with a particular format, the players today opted to just stick with a 12-team format.  The MLBPA also continued to decline the league’s overtures for an amateur draft for international players, and in regards to the domestic draft, the union still wants a proposed draft lottery to cover the top six picks in the draft (while the league wants only the top five picks impacted).

While the owners are sure to reject this proposal on the whole, some small positives could be taken from today’s news, even if the bigger obstacles holding up a new CBA remain in place.  The union’s previous issue with the league’s rule-change proposals had more to do with the introduction of the topic at what seemed to be a pretty late stage in CBA talks, rather than an objection to the content of the rule changes themselves.  Given how the three rules in question have already been being tested at the minor league level, it was no surprise that the league was seeking implementation eventually, though commissioner Rob Manfred said back in December that the owners would likely hold off discussion of any alteration of on-field rules in order to focus on the big-picture financial concerns.

Limiting the 45-day implementation to just these three rules represents a seemingly acceptable compromise for both sides, and such, it now seems like a fairly safe bet that for the 2023 season, fans will see a pitch clock, larger bases, and some changes to how teams deploy defensive shifting.  Any of all of these concepts can be argued as ways to improve the on-field product, with the larger bases and the limited shifts in particular intended to promote more offense and action on balls hit into play.

A clock could also potentially lead to more action, should a pitcher (perhaps feeling the pressure of a ticking countdown) rushes a mistake pitch that the batter knocks for a hit.  But in general, the pitch clock is intended to address the longstanding concern over the time and pace of games.  The exact mechanics of the rules are still to be worked out and quite possibly determined by committee, and The Score’s Travis Sawchik also notes that the clock could be a way of enforcing rules already on the books about keeping batters in the box during plate appearances.

ESPN’s Jesse Rogers reported earlier today that the league was aiming for a 14-second pitch clock with the bases empty, and a 19-second clock with runners on base.  This represents a change from the times tested in low-A ball last season, as pitchers had 15 seconds to throw with the bases empty and 17 seconds when a runner was on base.  Looking at the numbers from 2021, the clock seemed to indeed result in shorter games, as the low-A games saw a reduction of about 21 minutes in the average game time.

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MLBPA Reportedly Willing To Reopen Talks On 14-Team Playoffs

By Anthony Franco | March 5, 2022 at 10:45pm CDT

TODAY: The league and the MLBPA have scheduled a meeting for tomorrow, according to Ken Rosenthal (Twitter links).  The union will be presenting responses, in writing, to the league’s last proposals.

MARCH 4, 8:55 pm: Jeff Passan of ESPN writes that the union’s “ghost win” proposal would actually function as akin to starting a three-game series up 1-0. Under that scenario, the division winner would only need to win one game to move on to the Division Series, while the Wild Card club would need to win two straight games.

4:58 pm: In an effort to finalize a new collective bargaining agreement before the league’s imposed deadline to avoid regular season game cancelations, MLB and the Players Association reportedly agreed to move forward with the framework for a 12-team postseason field. With that deadline having passed with no overarching agreement and the league having since scrapped the first two regular season series, the union is apparently willing to reconsider a more expansive field.

Buster Olney of ESPN reports (Twitter link) that the MLBPA has informed the league it’s amenable to reopening talks on a possible 14-team playoff. That has been an important initiative of MLB’s throughout negotiations, with a broader field giving the league more postseason games it can sell to television providers. Andrew Marchand of the New York Post reported this week that a 14-team playoff would see MLB recoup an extra $100MM annually as part of its broadcasting agreement with ESPN.

That makes the 14-team playoff an enticing carrot for the league, one the union would no doubt make contingent on movement from MLB in other key areas. Where to set the competitive balance tax thresholds has been perhaps the biggest sticking point in negotiations. The league is reluctant to go beyond a $220MM base tax marker next season, while the union’s latest offer included a $238MM CBT base. That $18MM gap would only widen over the course of the potential agreement, with the MLBPA seeking more rapid increases in future seasons than the league has proposed. The parties also disagree on the amount of money that should go towards the pre-arbitration bonus pool and the league minimum salary, among other issues.

Reopening talks on the 14-team playoff could serve to kickstart talks as the parties regroup following MLB’s game cancelations. However, it’s worth noting that the 12-team postseason framework already marked a notable concession by the union. The status quo, of course, had been a 10-team field. Merely agreeing to bump from 10 to 12 teams created the possibility for extra playoff rounds and a corresponding windfall for the league. Marchand reported that a 12-team format would itself have led to around $85MM per season in extra revenue for MLB, again per the terms of the league’s broadcasting agreement with ESPN.

Approximately $85MM per season isn’t $100MM per season, though, so it’s little surprise the league had sought a 14-team playoff for most of negotiations. The union has maintained that it’d prefer a 12-team field. The MLBPA has expressed concerns that allowing 14 teams in would disincentivize clubs from ardently upgrading their rosters. The MLB postseason is more variable than those of other leagues — the playoff team with the worst regular season record won the World Series just last season, as an example — and the union fears those fluctuations could allow teams with already-strong rosters to be content not to push hard for further upgrades. That could have a trickle-down effect of limiting teams’ urgency to spend in free agency, a behavior the MLBPA wants to avoid.

The previous 10-team format offered a powerful incentive for clubs to try to win their division. Wild Card qualifiers were tossed into a one-game playoff, leaving little more than a 50-50 shot for any Wild Card team to advance to the Division Series. MLB’s proposed 14-team playoff setup would offer a first-round bye to the team with the best record in both the AL and NL (as in the case with the NFL’s system). However, the relatively minor favors for the other two division winners over the four Wild Card qualifiers — the division winners would get home field advantage and have the right to choose their first round opponents from among the bottom three Wild Card teams — weren’t significant enough needle-movers, in the players’ eyes.

Max Scherzer, a member of the union’s executive subcommittee, expressed reservations with that setup earlier this week. “It really came down to a format issue,” he told reporters (including Derrick Goold of the St. Louis Post-Dispatch). “In a 14-team playoff structure we felt that competition could be eroded in that area. … (When one team gets a bye), solely home-field advantage was not going to be the advantage to go out and win the division.”

Scherzer’s comments leave open the possibility for alterations to the league’s playoff format that could still see 14 clubs qualify. During earlier stages of negotiations, the union floated the concept of a “ghost win” for the first round. Under that system, the two division winners per league that did not receive a bye would automatically get the equivalent of a 1-0 advantage in a best-of-five series against the bottom two Wild Card qualifiers. Thus, the division winner would only need to win two out of a potential four games to advance to the second round; the Wild Card club would need to win three out of four to move on. The top two Wild Card teams in each league, meanwhile, would face one another in a standard best-of-three set (via Ken Rosenthal of the Athletic).

There’s no indication the league was on-board with the “ghost win” idea, but it highlights the possibilities for the sides to find a mutually-agreeable solution in this area. The MLBPA would likely prefer a standard 12-team playoff group, but agreeing to 14 teams seems to be the best way to get the league to move on other issues the union considers important. It stands to reason the MLBPA will push for strong bonuses (like the “ghost win” concept) for division winners as the parties reengage on the 14-team postseason.

That might reinvigorate talks between MLB and the union, but the league’s call to cancel regular season games now looms over all discussions. Rosenthal tweeted this morning that the MLBPA is preparing a response to the league’s final pre-cancelation offer, which the union rejected on Tuesday to end a stretch of nine consecutive days of negotiation in Jupiter, Florida. The parties are expected to schedule their next talks fairly soon, but they’ll face a whole host of new challenges whenever they do meet again.

Commissioner Rob Manfred is on record as saying the league is of the opinion that players shouldn’t be compensated for lost regular season games. MLB has been adamant those games are officially canceled and won’t be made up. Union lead negotiator Bruce Meyer has unsurprisingly argued that the MLBPA will pursue compensation for salary lost to game cancelations. As MLBTR’s Steve Adams wrote yesterday, the union figures to take an especially hard-line approach to making sure players aren’t forfeiting service days as a result of the lockout. The MLBPA has also previously indicated they’d refuse to expand the playoff field in 2022 if the league cancels games and strips players of any salary (as it since has). That all sets up even more difficulties for leadership on both sides to work through, but the hope is that the union’s willingness to reconsider a 14-team postseason could be a catalyst for progress on those issues.

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MLB Cancels Spring Training Games Until At Least March 18

By Anthony Franco | March 4, 2022 at 7:18pm CDT

MLB Spring Training games will not begin until at least March 18, the league announced on its website. Exhibition play had previously been scrapped through March 11.

It’s not a surprising delay, as it’s improbable there’ll be a new collective bargaining agreement in place to begin Spring Training games any sooner. There seems likely to be at least a week between the finalization of a new CBA and the start of Spring Training games. Teams will still need some time to conduct the remainder of their offseason work. Players will need at least a few days to report to camps before diving into gameplay.

MLB deputy commissioner Dan Halem and union lead negotiator Bruce Meyer met informally yesterday, but Jon Heyman of the MLB Network writes (Facebook link) that sit-down “provided little in the way of progress.” The league and Players Association don’t have any further talks currently scheduled — although Ken Rosenthal of the Athletic tweeted this morning that the MLBPA is currently preparing a counteroffer to MLB’s last proposal. Talks are expected to resume some point soon, and it’s hoped the union’s reported willingness to again discuss a 14-team playoff field could kickstart negotiations.

Of greater concern to most than the start of Spring Training is when the regular season will kick off. The league has thus far canceled the first two series of the regular season, with the league’s website listing April 7 as the date for the first scheduled contests. It seems likely that’ll soon be further delayed as well, as commissioner Rob Manfred has indicated he wants a four-week Spring Training period (from the start of players reporting, not from the start of the first Spring Training game). MLB announced the cancelation of the scheduled March 31 Opening Day 30 days in advance. There are 34 days until April 7.

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Collective Bargaining Agreement Spring Training

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MLBPA Launches Fund For Workers Impacted By MLB Lockout

By Steve Adams | March 4, 2022 at 10:00am CDT

10:00am: The league is also in the process of setting up a fund for impacted workers, tweets ESPN’s Jesse Rogers.

9:06am: The Major League Baseball Players Association announced Friday that it will launch a $1MM fund for workers impacted by the ongoing MLB lockout and the cancellation of regular-season games. The MLBPA and the AFL-CIO will administer the fund and provide aid to “stadium workers and others who face financial hardship through no fault of their own due to the MLB franchise owners’ lockout.”

“There are a lot of people who make our game great,” MLBPA executive board leaders Andrew Miller and Max Scherzer said in a joint statement. “Many aren’t seen or heard, but they are vital to the entertainment experience of our games. Unfortunately, they will also be among those affected by the owner-imposed lockout and the cancellation of games. Through this fund, we want to let them know that they have our support.”

“This fund is intended to support workers who are most affected by the MLB-impost lockout but whose livelihoods have been disregarded by the owners in their effort to pressure Players into accepting an unfair deal,” said MLBPA executive director Tony Clark in his own statement.

The ongoing labor strife between Major League Baseball and the Players Association reached a tipping point earlier this week, when the union rejected the league’s “best offer” prior an MLB-imposed deadline to avoid the cancellation of regular-season games. Commissioner Rob Manfred announced Tuesday that the first two series of the regular season will be canceled — not postponed — as the two sides continue to work toward an agreement. The widespread expectation is that additional games will also be wiped from the schedule.

While the players, owners and the negotiators leading these talks have been at the forefront of the labor dispute, the subsequent stoppage has a broad-reaching effect that will impact thousands throughout the industry. There are plenty of team employees (scouts, for instance) whose careers have been placed on hold, but stadium workers and the businesses surrounding MLB stadiums/Spring Training sites that depend on baseball for revenues are, in particular, adversely impacted. The financial impact felt by third parties throughout the sport will only mount as negotiations continue.

Today’s press release indicates that the MLBPA and AFL-CIO will work together to “determine the hardest hit communities and align resource distribution to those who need it most.”

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Collective Bargaining Agreement Newsstand

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Four Owners Voted Against MLB’s Most Recent CBA Offer

By Anthony Franco | March 4, 2022 at 7:50am CDT

March 4: Angels owner Arte Moreno, D-backs owner Ken Kendrick, Reds owner Bob Castellini and Tigers owner Chris Ilitch were all opposed to proposing a $220MM CBT threshold, per Evan Drellich and Ken Rosenthal of The Athletic. Drellich and Rosenthal add that some concerned owners have pointed to the spending of the Dodgers and the Mets as reasons for trepidation with pushing the luxury tax threshold further north. Martino tweets, rather unsurprisingly, that the Mets and the Yankees are among the teams open to a “less punitive” CBT setup.

The Athletic report also indicates that the players were particularly irritated when MLB proposed counting the cost of player meals against the luxury tax. Whether that’s among the issues recently raised by Blue Jays righty Ross Stripling isn’t clear, but Stripling contended that the league “tried to sneak some shit past us” in the proposal’s “fine print” during the wee hours of Monday night/Tuesday morning negotiations. Health insurance and other player benefits already count toward the luxury tax under the terms of the prior CBA. League special assistant Glen Caplin called reports of MLB trying to include meal money within the CBT “grossly mischaracterized” as part of a statement included in Drellich’s article.

March 3: Major League Baseball’s most recent offer in collective bargaining proved unpalatable to the Players Association, which rejected it despite knowing the league was likely to follow by canceling some regular season games. Various members of union leadership described that as an easy decision, with the MLBPA particularly dissatisfied with the league’s proposals on the competitive balance tax thresholds and the amount of money that would be allotted for the pre-arbitration bonus pool.

While the union found the offer too slanted in favor of the league, some on the MLB side apparently viewed the proposal as going too far towards the players’ asks. Andy Martino of SNY reports that during a video call between all 30 ownership groups and MLB leadership, four owners voted against the terms of the league’s final offer to the union on Tuesday. MLB needs approval from 23 of the 30 ownership groups to agree to their end of a new CBA, so the league was able to proceed with its offer with the assent of the other 26 owners.

Obviously, the terms of that deal weren’t sufficient to get the union’s approval. Yet some of the owners who were on-board with the league’s proposal Tuesday are evidently hesitant to move any further in the players’ direction. Martino writes that the call “made it clear” that more owners would oppose any offer that pushes the base CBT threshold above the $220MM mark the league put forth. The MLBPA, meanwhile, proposed a $238MM base tax marker in 2022. Martino writes that the union refuses to entertain any offer with a 2022 tax threshold lower than $230MM.

There’s currently an $18MM gap on the luxury tax for 2022, and the parties are even more divided on the marker’s long-term future. The MLBPA has sought more rapid escalation of the threshold over the term of a potential CBA than the league has offered. Under the parties’ latest terms, the $18MM gap would rise to a $33MM divide by 2026 — the players were looking to set that year’s figure at $263MM, while MLB proposed $230MM for that season.

Martino’s report sheds some light on the challenges that remain for finding a mutually agreeable settlement on the CBT, which has proven perhaps the biggest sticking point in negotiations. The union has pursued a rapid expansion of the threshold, pointing to team spending habits suggesting the CBT has served as a de facto salary cap for clubs. Last season, five teams finished with CBT payrolls within $5MM of the $210MM base threshold. Two clubs, the Dodgers and Padres, pushed their CBT number above $210MM. Given the union’s longstanding opposition to any form of salary cap, it’s little surprise they’ve sought to dramatically increase the numbers this time around.

The league, meanwhile, has pursued the opposite initiative. MLB’s early CBA proposals included harsher penalties for tax payors, provisions that would’ve presumably made clubs even more reluctant to do so. It dropped the push for tougher penalties this week, but it hasn’t shown the appetite for the kind of higher thresholds the union seeks.

As MLBTR’s Tim Dierkes explored in December, the past two collective bargaining agreements have seen limited growth in the CBT thresholds. From the time of the tax’s introduction in 1997 through 2011, it wasn’t uncommon to see the CBT jump by more than 4% year over year. Since 2012, however, that growth has slowed considerably. The base CBT marker has moved from $178MM that year to $210MM last season, an average hike of less than 2% per year.

The league’s offer to move from $210MM to $220MM would represent a 4.8% year-over-year jump. MLB would presumably posit that’s a meaningful enough increase to be favorable to the players. However, it was followed by no movement on the tax in each of the following two years and minor increases in each of the two seasons thereafter. The union, meanwhile, seems intent on pulling in a more dramatic spike in the tax threshold to somewhat compensate for its slowed progression between 2012-21.

It’s not clear how many owners are inherently opposed to pushing that number beyond $220MM. Martino’s report hints at the conflicted interests that can arise among the ownership groups themselves. Presumably, some large-market clubs that are planning to exceed the CBT anyhow would be on-board with the union’s efforts to encourage penalty-free spending. Others could be anxious to draw a harder line, particularly with the league reportedly content to miss a month’s worth of regular season games in order to pressure the union to move in their direction.

If more than three of the owners who voted yes on MLB’s latest proposal are stringently opposed to going further, the league may be hard-pressed to find the votes to go past $220MM this year. That’d seemingly be unacceptable to the union. If there’s that kind of fundamental disagreement on the luxury tax, it’ll be essentially impossible for the sides to put a new CBA in place.

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Arizona Diamondbacks Cincinnati Reds Collective Bargaining Agreement Detroit Tigers Los Angeles Angels Los Angeles Dodgers New York Mets Arte Moreno Bob Castellini Chris Ilitch Ken Kendrick

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Canceled Regular Season Games Raise The Possibility For A Dispute Regarding Service Time

By Steve Adams | March 3, 2022 at 6:02pm CDT

Major League service time is awarded not based on games spent on a big league roster but rather by total days spent on the Major League roster (or injured list). The Major League Baseball season is 186 days long and a “full year” of service time is defined as 172 days.

A full year of service can be accrued over multiple seasons, of course. A player called up with 72 days left in the regular season, for instance, would accrue 72 days of service time in the current season and need 100 the following year to get across that one-year threshold. Assuming said player spent that entire second season on the roster, he’d have a year and 72 days of service time. For written purposes, service time is displayed as: [years].[days]. So, the player in this example would have 1.072 years of service following that second season. Two more full years of service, and he’s at 3.072 and into arbitration by virtue of crossing three years. Three more years on top of that, and he’s at 6.072 and eligible for free agency by virtue of accruing more than six years of service time.

With that quick and admittedly rudimentary crash course for the uninitiated out of the way, I thought it would be pertinent to take a look at how the recent cancellation of Opening Day by commissioner Rob Manfred could potentially impact players from a service-time vantage point — specifically those who could, at least in theory, stand to see their free agency delayed by a season.

At present, the league has only canceled the season’s first two series. Theoretically, if MLB and the MLBPA were to agree to a new deal this weekend and Opening Day were pushed back only a week — a pipe dream, I realize, but humor me for the purposes of this example — the season could technically still contain 179 days. Players could, then, receive a full year of service even in the absence of a week’s worth of games being wiped from existence.

What if, however, we reach the point where anything more than two weeks of games are canceled? The moment 15 or more days are nixed, there are 171 days on the schedule — which is technically not enough for any player to accrue a full year of service in 2022 alone. For players like the hypothetical one I described in the first couple sentences, that might not be a huge deal. My 1.072 player would only need 100 days of service this season, and so long as he got those 100 days, he’d cross into the two-plus service bracket and his timeline to free agency would remain unchanged. However, a player entering the season with exactly three years of service time (or two years, one year, etc.) would suddenly be looking at a calendar that literally doesn’t have enough days on it to keep their free-agent trajectories on track. Since arbitration is also based off service time, there’d be major implications on that front as well.

It’s for this reason that the union is widely expected to fight tooth-and-nail for full service time to be awarded even in spite of missed games/missed calendar days. The MLBPA will argue that it was the league who implemented the lockout and the league who canceled games early in the season. An attempt to withhold service time would quite likely be perceived by the players as something so damaging that they’d be willing to sit out indefinitely. That service time is worth hundreds of millions of dollars to the players.

The union is also expected to push for full pay rather than prorated salaries on the season, although it’s quite arguably the service time that’s more valuable, given its future implications. The two sides will butt heads over these issues, to be sure. MLBTR’s Tim Dierkes tweets that he expects the eventual compromise to be one that sees the players still receive full service time but not be paid for any missed days. As Tim points out, there’s precedent for both of these in the past.

At the moment, there’s a fair bit of talk about the possibility that all of April is lost to the current lockout. Much of that stems from Ken Rosenthal’s recent report at The Athletic, wherein he revealed that most television contracts don’t call for teams to issue rebates to their broadcast partners until “around 25 games” are missed. This has led to several players, Willson Contreras and Jason Heyward among them, accusing the league of deliberately seeking a reason to wipe April games from the schedule. April attendance is generally poor relative to the rest of the season, and the allegations put forth by the players accuse ownership of effectively only taking on the operating costs of five-sixths of a season while still receiving a full season’s worth of television revenue.

Feel free to discuss that theory all you like in the comments, but I’m setting it aside because the specifics of why we might miss the month of April are irrelevant for the purposes of this exercise. What matters here is which players would be most harmed by the possibility of April being wiped from the schedule and MLB subsequently trying to withhold their service. It’s quite unlikely that the league would succeed in these efforts, to be clear, but the hypothetical is still worth investigating.

Opening Day had been slated for March 31 (one day of service), and there are another 30 in April, of course. Striking April from the record would drop the season to 155 calendar days. Any player with even 17 extra days of service toward another year (i.e. 1.o17, 2.017, etc.) would be able to move their service time up a year. Any player with 16 or fewer toward another year (i.e. 1.016, 2.016, etc.) would be out of luck. MLBTR has obtained a full record of official service time for every current Major Leaguer, which is the source for the service-time data used in this exercise.

First, a few caveats. As this pertains mostly to players who have not yet accumulated six total years of service (i.e. reached free agency) or signed a long-term contract that renders such service time considerations largely moot (e.g. Fernando Tatis Jr.), I’ve excluded those players. I’ve also, admittedly subjectively, chosen players who have a decent chance to last the whole season on a big league roster.

All that said, let’s take a look at each service bracket and who’d technically come up short. As you might expect, there are some rather notable names:

Five-plus years of service time: Trey Mancini, Manuel Margot, Grant Dayton
Four-plus: Frankie Montas, Jack Flaherty, Ryan McMahon, Reynaldo Lopez, Isiah Kiner-Falefa, Jordan Hicks, Brad Keller, Shohei Ohtani
Three-plus: Lucas Luetge, Austin Adams, Lucas Sims, Tyler Kinley, Brett Phillips, Adrian Houser, John Means, Kyle Higashioka, Josh James, Rowdy Tellez, Dylan Moore, Chris Paddack, Nick Anderson, Pete Alonso
Two-plus: Jorge Alcala, Lane Thomas, Nico Hoerner, Adrian Morejon, Jared Walsh, Aristides Aquino, Kyle Finnegan, Jorge Mateo, JT Brubaker, Jake Cronenworth, Anthony Misiewicz, Brady Singer, Codi Heuer, Cristian Javier, David Peterson, Tejay Antone
One-plus: James Kaprielian, Chas McCormick, Akil Baddoo, Andrew Vaughn, Garrett Whitlock, Jake Brentz, Jonathan India

Put another way, if the league were to somehow succeed in not only canceling the first month of the season but also withholding service time, you’d see the likes of Shohei Ohtani, Pete Alonso, Trey Mancini, Manuel Margot, Jack Flaherty, Frankie Montas, Ryan McMahon, etc. all watch their gateways to free agency be delayed by a full year. The huge loss of earning power that comes with getting a year older — to say nothing of the potential for injury and/or decline — is where the aforementioned “hundreds of millions of dollars” in value to the Players Association that I referenced stems. And, if we see a portion of May, June, etc. canceled, further names will be added to this list.

Again, this is an exercise in hypotheticals, and I can’t imagine a scenario where the players willingly shrug and accept the loss of service time for days that were lost to a league-implemented lockout. But the two sides are absolutely going to negotiate over this, perhaps in heated fashion. If you find yourself asking “what’s the big deal” regarding the potential for missed service time — the “big deal” is another year that the likes of Ohtani, Alonso, Flaherty, etc. are under club control via arbitration rather than having a chance to hit the free-agent market.

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Lead Negotiators For MLB, MLBPA Meeting Today

By Steve Adams | March 3, 2022 at 9:50am CDT

Deputy commissioner Dan Halem and MLBPA lead negotiator Bruce Meyer are expected to meet today at an “informal” one-on-one sitdown in New York, tweets Evan Drellich of The Athletic. It’ll be the first time since Commissioner Rob Manfred announced the cancellation of Opening Day earlier this week that representatives from the two parties have met in person.

What’s on the agenda isn’t clear, though it’s at least mildly encouraging to see two key representatives meet just days after the “deadline” set by MLB passed. After the last deadline (the expiration of the prior collective bargaining agreement), six weeks transpired before the league put forth a counterproposal to the union. At present, it’s the league that made its most recent offer, which the union unanimously agreed to reject.

Of note, Chelsea Janes of the Washington Post tweets that, moving forward, the two parties hope to reduce some of the very public back-and-forth nature of prior talks and keep negotiations closer to the vest. Both the recent week-plus of negotiations in Jupiter, Fla. and the 2020 return-to-play negotiations were public spectacles, to varying extents.

As things stand, the league has only canceled a week’s worth of games, though it seems quite possible (if not likely) that additional cancellations will follow. MLBTR’s Tim Dierkes recently ran down where both parties sit on the issues at hand, for those looking for a quick reference point on the gaps that remain in need of bridging. Now, on top of those issues, the league and union will have to also discuss scheduling matters — the union has reportedly expressed a desire to reschedule canceled games; Manfred indicated Tuesday that would not happen — and the possibility of prorating pay and/or service time based on games missed.

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Collective Bargaining Agreement

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