10:05 pm: Drellich reports that MLB remained displeased with the reduced proposed cuts to revenue sharing in the union’s latest offer, writing “there’s no indication” MLB is willing to make any alterations to the revenue sharing system.
4:45 pm: In addition to holding firm on their push for two-year arbitration, the MLBPA remained steadfast on a few more of their top goals. Jeff Passan of ESPN reports that the union proposal included a bump in the league minimum salary to $775K, the institution of an eight-team draft lottery and a $245MM base luxury tax threshold. All three issues had been known goals of the MLBPA in past proposals, and the setting of the CBT threshold is expected to be of particular import. In recent offers, MLB has pushed for tax thresholds in the $214MM – $220MM range, leaving a fairly significant gap between the parties.
3:51 pm: As part of this afternoon’s collective bargaining proposal, the MLB Players Association dropped its push for an earlier path to major league free agency, reports Evan Drellich of the Athletic. It now seems likely the next CBA will require players to accrue six years of MLB service time in order to reach the open market — as had been the case under prior agreements.
The game’s service time structure is one of the most contentious issues during ongoing negotiations. The MLBPA, desiring to get players to free agency earlier, had previously been pursuing a modified service/age threshold that would’ve allowed players to test the market after six years of MLB service or after five years of service if the player had reached a certain age (initially 30.5 years, later 29.5).
Major League Baseball had steadfastly refused to entertain that possibility, either pushing for a continuation of the six-year status quo or an age threshold (29.5, in MLB’s previous offers) that was independent of service time. It seems the league will get its wish to preserve the path to free agency as is, marking a significant development.
In an additional alteration, Drellich reports that the MLBPA agreed to alter its push for reduced revenue sharing from large-market organizations to small-market franchises. Chelsea Janes of the Washington Post adds more specifics, reporting (on Twitter) that the union’s latest offer included a revenue sharing cut in the $30MM range relative to the 2016-21 CBA.
Earlier in the winter, the union had been pushing to cut revenue sharing by around $100MM. The past CBA required recipients to use those funds “to improve (their) performance on the field,” but there was no provision that required teams to invest the money into player salaries (as opposed to such things as scouting, analytics or player development, all of which indirectly attempt to improve team performance). The MLBPA has expressed its belief that smaller-market clubs have been too content to pocket that money, filing grievances to that effect against the A’s, Marlins, Rays and Pirates in recent years.
As with an expedited path to free agency, the league has opposed modifications to the revenue sharing system. It remains to be seen whether that pushback is categorical or one of degree. The MLBPA’s proposal still included a revenue sharing cut, of course, but it’s significantly smaller than the union’s previous pushes in that regard.
While the MLBPA made a pair of notable steps towards MLB’s vision, one thing that hasn’t changed is the union’s desire for earlier arbitration eligibility. Drellich reports that the union’s proposal this afternoon would allow players to qualify for arbitration after reaching two years of MLB service, as have all of the PA’s past offers. (The previous CBA required three years for arbitration eligibility for most players). MLB has thus far refused to discuss earlier paths to arbitration, either. Whether the league will be more amenable to that possibility now that the union has made some changes in other key areas is unclear.
Janes tweets that this afternoon’s meeting lasted around two hours and fifteen minutes. Encouragingly, the parties are set to meet again tomorrow, according to a report from Hannah Keyser of Yahoo! Sports (Twitter link). At that sit-down, MLB plans to put forth some form of counter-offer, tweets Drellich, although the league won’t make a comprehensive proposal that hits on every topic of discussion. It seems possible today’s proposal will kick-start negotiations, which have moved at a glacial pace in the nearly two months since the start of the lockout.
That’s not to say agreement on a new deal is imminent. According to Drellich, the MLBPA “rejected most, if not all” of the terms the league put forth in its most recent offer, a bit more than two weeks ago. Jeff Passan of ESPN tweets that today’s meeting was “contentious;” Drellich categorized it as “heated.”
It also bears reiterating that the full specifics of the MLBPA’s proposal aren’t known. In addition to ongoing potential holdups regarding arbitration eligibility and revenue sharing, such issues as the competitive balance tax, league minimum salary and playoff expansion will need to be sorted out. With a bit more than a month before the scheduled start of the first Spring Training games, the parties have to make rapid progress in a number of areas if a disruption to the exhibition schedule is to be avoided.
