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Newsstand

Opening Day Set For April 7

By Anthony Franco | March 10, 2022 at 6:35pm CDT

6:35pm: Tim Healey of Newsday reports (Twitter link) that the league and union also agreed to a series of games or tours in various destinations outside the United States and Canada. During the next CBA, they’ll stage events in Mexico, Asia, Puerto Rico, London, the Dominican Republic and Paris.

5:25pm: Jared Diamond of the Wall Street Journal reports (on Twitter) that beginning in 2023, the schedule will be adjusted such that every team plays all 29 opponents in each season. The exact format is to be determined, but those games will come attached to a decrease in the number of intra-divisional games teams will play. Previously, teams played 19 games per season against all four of their divisional opponents.

2:34pm: With the new collective bargaining agreement in place, Opening Day will be set for April 7, as first reported by Bob Nightengale of USA Today (Twitter links). It’ll be a 162-game season with full player pay, with the end of the season pushed back three days and doubleheaders in place to compensate for the one-week delayed start. Spring Training games will begin around March 18.

Players will be able to report to Spring Training tomorrow, tweets Jeff Passan of ESPN. The mandatory spring report date is Sunday, March 13, according to Chelsea Janes of the Washington Post.

MLB had announced yesterday it was canceling games through April 13. However, today’s progress in negotiations led the league to backtrack on that stance. Nothing has been made official on the league’s end — presumably, that’s pending this evening’s ownership ratification, which is expected to be a formality. At that point, the league figures to make a formal announcement on the schedule. Presumably, it’d reinstate the originally scheduled games it nominally wiped out yesterday, but there’s been no word on that yet.

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March 22 Set As New Date For Teams, Players To Exchange Arbitration Figures

By Mark Polishuk | March 10, 2022 at 4:42pm CDT

Dozens of arbitration-eligible players still have to get their salaries figured out for the 2022 season, and now that the lockout is over, March 22 is the new deadline for teams and players to submit numbers, The Athletic’s Ken Rosenthal reports (Twitter link).  Since a good number of these arbitration cases won’t be settled by March 22, this means arb hearings will stretch into the actual regular season, which is now set to begin on April 7.

As usual, teams will reduce their list of arbitration-eligibles via contract agreements prior to March 22, or perhaps even by trading or releasing some eligible players.  Though the official non-tender deadline still took place just prior to the lockout, it could be that some clubs have simply changed their minds on some players, or have new priorities in terms of cutting or adding to payroll.  With this in mind, the likelihood of even more players becoming available will only add to what already be an absolute frenzy of a free agent and trade market in the aftermath of the lockout.

The sheer amount of front office business could see a shift in how teams or players address these arbitration cases.  While obviously both sides have a specific price in mind and aren’t going to agree to a major discount, there could be a little bit more sway on one side or the other just in the same of getting a deal done.  The sooner an agreement is reached, the sooner the player can fully concentrate on getting ready for the season, and the team can check one item off a lengthy to-do list.

In recent years, clubs have been more apt to deploy the “file and trial” strategy of not negotiating (apart from discussing multi-year extensions) after the figure-exchange deadline for arb-eligible players.  The strategy is to exert a bit of pressure on players to accept an arb-avoiding contract in advance of the deadline, so both sides can sidestep the uncertainty that often goes into an arbitration hearing.  It remains to be seen if teams may be more willing to bend on talks post-deadline just in the name of getting a one-year settled pre-hearing, or if teams may perhaps be even more prone to “file and trial” tactics if they feel they have added leverage on particular players.

However, since hearings won’t take place until after Opening Day, some players will begin the season not knowing that they’ll exactly be earning, thus creating a very unusual situation and adding another wrinkle to a process that already lends itself to awkwardness.  It isn’t uncommon for some hard feelings to develop from these hearings, and now a situation has been created where a team can openly criticize a player during a morning arbitration hearing, and then rely on that same player to be in the starting lineup of that evening’s game.  While an arbiter will only be considering 2021 statistics in determining a 2022 salary, it is possible that some on-field events early in 2022 (a particularly hot or cold start by the player, or an injury) could impact how either side approaches presenting their case to the arbiter.

Of note, the 2021-22 arbitration-eligible players are all still subject to the rules of the previous collective bargaining agreement.  That said, there also weren’t many big changes made to the arb process under the new CBA, as the league refused to even discuss the standards relating to the amount of service time required to gain salary arbitration, or even to the player’s desire for a large increase in the number of Super Two-eligible players.  However, pre-arbitration players will now enter their arb years on higher base salaries, thanks to the new bonus pool system for pre-arbitration players and the increase in the minimum salary.

One interesting detail does exist, as MLBTR has learned that for players who will be arbitration-eligible for the first time next winter, their statistics from the shortened 2020 season will be extrapolated to fit what the player “would have” done had the season been a standard 162 games.  A player who hit 10 home runs in 2020, for instance, would be treated as if he had hit 27 homers.  This formula involving 2020’s statistics will be used for all future arbitration hearings going forward.  However, no such formula exists regarding the 2020 season for this year’s arb class, so teams and players can make whatever arguments they wish in hearings given the lack of a uniform standard for how 2020 statistics should be addressed.

MLB Trade Rumors has used Matt Swartz’s model for projecting arbitration salaries for the last 11 years, and here are the projections for both the remaining arb-eligible players, as well as the numbers for the players who agreed to deals prior to the non-tender deadline.

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Postseason Expands To 12 Teams; First Round Will Be Three-Game Series

By Anthony Franco | March 10, 2022 at 4:35pm CDT

As expected, the collective bargaining agreement expanded the postseason field from ten teams to twelve. Travis Sawchik of The Score reports the format (via Twitter): the top two division winners in each league receive first-round byes, while the worst division winner and the three Wild Card teams per league will play three-game sets to advance to the Division Series. The worst division winner will face the final Wild Card qualifier, while the top two Wild Card clubs will take on one another.

There is no “ghost win” involved. The Players Association had previously floated the possibility of division winners starting with a one-game advantage in any first-round set against a Wild Card club. MLB opposed that idea, and it didn’t make it into the final agreement.

The union’s push for a “ghost win” seemed more rooted in concerns about a potential 14-team format than with the 12-team arrangement, though. The MLBPA was unenthused by the possibility of going to 14 playoff teams, fearing that doing so would disincentivize clubs from ardently upgrading their rosters if they believed they were already comfortable postseason qualifiers.

Ultimately, the union held firm on the 12-team playoff this time around. Describing that as a loss for the league, which had sought 14 for most of negotiations, wouldn’t be entirely accurate though. Going from 10 to 12 clubs marked a major concession in its own right; the introduction of a new round of the postseason is worth a reported $85MM annually for the league under the terms of its broadcasting arrangement with ESPN. That’s before accounting for gate and concession revenue for clubs hosting those additional games.

With the postseason expansion, the Wild Card game is no more. The one-game playoff between the two Wild Card clubs in each league took effect with MLB moving from eight to ten postseason qualifiers back in 2012. It remained in place through 2021, but the one-game playoff has been eliminated in favor of three-game series moving forward.

Interestingly, the potential Game 163 tiebreaker has also been scrapped. Jayson Stark of the Athletic reports (Twitter link) there are seeding tiebreakers in place in the event teams finish the year with the same regular season record. The specifics aren’t clear, but other leagues have used such things as head-to-head record between tied clubs and winning percentage in intra-league games as tiebreakers. Rather than conducting a one-game playoff between teams that finish tied for postseason spots, a prearranged formula will determine the field.

Finally, the division series won’t be reseeded, Sawchik reports. The top seed in each league will host the winner of the 4 vs. 5 Wild Card series in the second round, even if the #6 seed beats the #3 seed. That’s a bit of an odd choice on the surface, but it could perhaps aid MLB in marketing the postseason as an NCAA basketball-style bracket.

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New CBA Officially Introduces Universal Designated Hitter

By Anthony Franco | March 10, 2022 at 3:36pm CDT

Today’s collective bargaining agreement officially introduced the designated hitter to the National League, tweets Mark Feinsand of MLB.com. That’s certainly not a surprise, as the universal DH had been one of the earlier principles for MLB and the Players Association to settle.

The union has sought a universal DH for quite some time, with more possibility for aging or defensively-limited players to have regular roles. AL teams have increasingly used the position as a quasi-rest day for regular players rather than committing to a true full-time DH, but six players (Nelson Cruz, Shohei Ohtani, J.D. Martinez, Giancarlo Stanton, Franmil Reyes and Yordan Álvarez) tallied at least 400 plate appearances in the role last season.

Cruz, in particular, could be the most immediate beneficiary of the universal DH’s implementation. He’s a free agent but is unlikely to see much, if any, time in the field next year. The universal DH opens up the opportunity for NL teams that may have otherwise been wary to bid on Cruz. Other bat-first free agents like Eddie Rosario and Jorge Soler could also see their respective leaguewide demand propped up a bit.

The league, meanwhile, embraced the universal DH as a means of aiding offense. The sport’s ever-increasing strikeout rate has drawn plenty of consternation. The leaguewide strikeout percentage ticked upwards every year between 2005 and 2020, setting an all-time record each season. Last year finally marked a stop to the record-breaking streak, as the strikeout rate marginally slipped from 23.4% to 23.2%. That’s perhaps a bit encouraging, but last year’s number still checked in almost seven percentage points above 2005’s 16.4% mark.

Pitchers aren’t the only culprit for the decrease in balls in play, but they’ve had real issues making contact. Last year, pitcher-hitters fanned at a 44.2% clip. Overall, they hit .110/.150/.142 across 4,830 plate appearances. That’s ghastly production, even by the historically low standards at the position. Their five highest all-time strikeout rates have come in the last five years of pitcher hitting. Four of the five lowest pitcher-hitters’ wRC+ (which compares their overall offensive output to that season’s league average marks) have come since 2017. However one wants to explain that trend — improved leaguewide velocities, specialization that leads to less practice for pitcher hitting, etc. — pitchers were putting up less of a fight at the plate than ever before.

The development figures to receive varying reception from fans of Senior Circuit teams (although many likely considered it an inevitability some time ago). Aside from its implementation as a pandemic protocol in the shortened 2020 season, the NL has never had the position. Most MLBTR readers, however, seem to favor its introduction. In a December poll, 62% of respondents expressed support for an NL DH; 26% were against the possibility, while 12% were generally apathetic.

The universal DH is the only official on-field rules change for 2022, but two recent pandemic protocols did not survive the CBA. Jesse Rogers of ESPN reports (on Twitter) that the nine-inning doubleheader returns, as do standard rules for extra innings. The “ghost runner” provision has been scrapped.

The seven-inning doubleheaders and the extra-innings runner proved divisive provisions among baseball fans in their two years in place. They’d been implemented as part of the COVID-19 protocols, with both provisions designed to lessen player workloads during seasons that could be massively impacted by virus-related postponements. Those concerns aren’t expected to be as prominent in 2022, and it seems neither party was motivated enough to agree to implement them permanently. The league may look to reinstitute those rules at some point down the line, but they won’t be in effect for the upcoming season at the very least.

As part of the CBA, a rules committee will be created in 2023, Feinsand tweets. That committee — a group of four active players, six league appointees and an MLB umpire — will have the authority to implement an on-rules change within 45 days of recommending it to the MLBPA. Previously, the league had to wait one year between asking the union’s approval on a rules change and having the right to implement it in the event the MLBPA refused a bilateral agreement.

MLB technically no longer has sole authority to implement those changes, though its appointees will outnumber the player reps on the rules committee. That probably gives the league de facto control over rules, and it’s expected the league will try to implement three in particular — the implementation of a pitch clock, limits on defensive shifting, and larger bases — for the 2023 campaign. Feinsand suggests the automatic strike zone could also be a topic of discussion at that point, although that’ll become clearer next offseason.

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MLBPA Reviewing Latest MLB Counterproposal

By Steve Adams | March 10, 2022 at 1:55pm CDT

1:55pm: Heyman tweets that the MLBPA executive subcommittee “appears” to be voting against the proposal, though it’s not clear whether that’s a unanimous decision or whether there’s a split camp among the eight players on that committee. That’s an important distinction, as the MLBPA needs a simple majority among the 30 team union reps and the eight members of the subcommittee — a total of 20 yes votes. In other words, it’s still possible for the union to approve the deal even if the executive subcommittee is against it.

1:45pm: Heyman tweets that MLB’s proposal also requests that the MLBPA drop the $500MM grievance it filed against MLB, wherein the players posited that MLB did not negotiate in good faith during return-to-play talks in the pandemic-shortened 2020 season.

1:14pm: Heyman tweets that MLB’s proposal calls for spring games to begin around March 17 and for Opening Day to fall on April 5. That would require backtracking on several of the games previously announced to be canceled or “removed from the schedule,” and ESPN’s Jesse Rogers adds that the remaining games would be made up through a series of doubleheaders that, notably, would be nine innings in length.

As notably, Rogers tweets that free agency could reopen as soon as tonight if the two sides reach an agreement and ratify the new CBA today. Sports Illustrated’s Tom Verducci suggested the same earlier today in an appearance on MLB Network.

1:09pm: The MLB Players Association has received the league’s latest counterproposal, as first reported by ESPN’s Marly Rivera, and is now in the process of reviewing the latest changes proposed by ownership. MLB Network’s Jon Heyman reports that the newest proposal saw the league up its proposed pre-arbitration bonus pool from $40MM to $50MM. Ken Rosenthal of The Athletic, meanwhile, tweets that there have been a few more modest concessions made in terms of the competitive balance (luxury) tax threshold and the minimum salary. MLB increased its proposed luxury threshold in 2026 (the final year of the proposed CBA) — slightly closing what had been an $8MM gap. The league held firm on its proposed $700K minimum salary for the upcoming season but offered a $10K increase over the $770K it had proposed in 2026 — up to $780K.

The movement on the pre-arbitration pool is the most notable jump made. The two parties had been facing a gap of $25MM, with the players coming in at a $65MM pool in 2022. However, the larger issue is surely whether that pool will grow at all over the life of the agreement. MLB has been steadfast in its push to keep the newly created bonus pool static, whereas the players have sought a $5MM annual increase to the size of the pool.

On the CBT front, the two parties had previously faced annual gaps of $2MM, $3MM, $4MM, $5MM and $8MM over the life of the potential agreement. MLB has held firm on its $230MM, $232MM, $236MM and $240MM threshold proposals from 2022-25, but they’re now proposing a $244MM threshold in 2026.

Notably, Heyman adds that the league’s proposal requests that the MLBPA drop previously filed grievances against the Rays, A’s, Pirates and Marlins — suits that allege that those four organizations had not sufficiently reallocated their revenue-sharing funds toward improving the on-field product. That’s not a new request, MLBTR has learned, but it’s also not one to which the union has previously agreed. That will be among the many topics considered when the union takes its vote — which ESPN’s Kiley McDaniel suggests could be taking place right now.

Confoundingly, Rosenthal indicates that MLB has yet again attempted to set another “deadline” for players, this one at 3:00pm ET today — a bit under an hour from now. MLB’s repeated attempts to set a deadline have not resulted in a deal yet and have generally served to stall negotiations rather than encourage them. The union hasn’t felt compelled to stick to those league-implemented deadlines, but the fact that they union appears to be in the process of voting right now, rather than outright refusing the proposal, at least offers a notable departure from some of the previous and more contentious back-and-forths that have taken place. Also of note, Daniel Alvarez Montes of El Extra Base tweets that if a deal is reached before that 3pm “deadline,” players will be allowed to begin reporting voluntarily to their Spring Training facilities as soon as tomorrow.

All of this movement comes after a morning agreement in which the two parties reached a provisional agreement regarding a July deadline to negotiate an international draft that would begin in 2024. If a deal is reached by July 25, the qualifying offer system (and the draft-pick compensation associated with it) will be eliminated. If no deal on the international draft is reached, the qualifying offer system and draft-pick compensation will remain in place, and the current international amateur free agency structure will remain in place.

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Following Progress On International Draft, MLB Submits Full Counterproposal To MLBPA

By Steve Adams | March 10, 2022 at 12:28pm CDT

12:28pm: The union has received MLB’s new counterproposal, tweets ESPN’s Marly Rivera.

10:43am: The Athletic’s Ken Rosenthal tweets that with the international draft and qualifying offer disagreements now resolved, the league is preparing to make a “full proposal” to the union. As of this writing, MLB had not yet countered the final proposal received by the MLBPA yesterday.

10:29am: Major League Baseball and the Major League Baseball Players Association have reached a provisional agreement regarding the international draft, reports ESPN’s Jeff Passan (Twitter thread). The two parties have set a July 25 deadline to determine the specifics of an international draft that would go into effect beginning in 2024. If a deal on the draft is reached by July 25, the qualifying offer system and the associated draft-pick compensation will be eliminated. If the two sides do not reach a deal on the draft, the qualifying offer system will remain in place — as will the current international amateur free agency structure.

While this is a step shy of an agreement to actually implement the draft itself, it’s nevertheless a major hurdle that has been cleared on the path to the ratification of a new collective bargaining agreement. Discord regarding the league’s desire to trade the elimination of the qualifying offer system for an international draft yesterday derailed talks and led to commissioner Rob Manfred further postponing Opening Day until April 14. The MLBPA’s final proposal to the league included a similar provision to the one agreed upon today, with a Nov. 15 deadline to agree to the draft instead of the newly proposed July 25 deadline.

With the theatrics surrounding the theoretical international draft’s implementation and the qualifying offer system now set to the side, it would appear, ostensibly, that the focus can shift back to the core economic issues that have been the crux of recent negotiations. While the international draft was framed as a sticking point yesterday and garnered a huge portion of the attention, there are still some gaps to bridge on key economic issues such as the competitive balance (luxury) tax thresholds, the newly proposed bonus pool for pre-arbitration players and, to a lesser extent on the league-minimum salary.

As of yesterday afternoon, the MLBPA had dropped its asks on the new CBT thresholds to $232MM in 2022, $235MM in 2023, $240MM in 2024, $245MM in 2025 and $250MM in 2026. The league’s prior proposal included proposed thresholds of $230MM, $232MM, $236MM, $240MM and $242MM over those respective years. In essence, the two parties face respective gaps of $2MM, $3MM, $4MM, $5MM and $8MM in that five-year span.

There’s a wider rift on the pre-arbitration bonus pool, with the union yesterday dropping its proposal to $65MM (presumably with the same $5MM annual increase previously sought). Ownership, meanwhile, has countered with a flat $40MM pool that will not increase at all over the CBA’s five-year term. That $25MM gap is sizable on the surface, though it does boil down to a matter of $833K per team — scarcely more than the new league-minimum salaries that will be going into place.

On that note, MLBTR’s Tim Dierkes reported yesterday that the MLBPA had dropped its proposed league-minimum salary to $710K — narrowing what was a $25K gap to just a $10K gap between MLB’s proposed minimum of $700K. Both parties have agreed that the minimum salary would rise by $70K over the five-year life of the CBA, so the difference at this point rests solely on that small difference in starting point. Of all the issues, this would seem to be far and away the simplest to bridge.

It’s hard not to be encouraged by progress surrounding what had emerged as a major roadblock, but optimism should still be tempered. The gaps on the CBT threshold and, particularly, the bonus pool for pre-arbitration players are still relatively prominent, and there’s no indication yet as to the extent to which MLB will move in its forthcoming proposal. It’s also eminently possible that additional hurdles will arise. Few foresaw the international draft playing such a prominent role prior to this week.

A pair of issues that shouldn’t serve as an obstacle, Dierkes further reports (via Twitter), are on-uniform advertising patches and the Athletics’ revenue-sharing status. Yesterday’s MLBPA proposal agreed to allowing advertising on player uniforms, and the union also agreed to reinstate the Athletics as a revenue-sharing recipient. Oakland did not receive revenue-sharing funds in 2021 or in 2020. They’d seen a reduced share in 2017-19, under the terms of the previous CBA — a penalty levied due to questions about whether the team had sufficiently invested those funds back into the on-field product and whether they’d made their best efforts to secure a new stadium.

Time will tell just what the owners’ latest offer brings, but even tempered optimism is a welcome change from last night’s tenor. Whenever the two parties finally reach an agreement, the floodgates could well open in a hurry. Sports Illustrated’s Tom Verducci said in an appearance on MLB Network this morning that free agency could potentially reopen the same day that an agreement is reached, for instance (Twitter link via MLB Network’s Jon Morosi). And it’s worth noting, too, that The Athletic’s Jayson Stark tweeted this morning that the league still viewed a 162-game season as a possibility.

It’d be premature to say an agreement is nigh, but the breakthrough from yesterday’s most prominent roadblock is a breath of fresh air as an increasingly stagnant lockout reaches its 99th day.

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MLB Announces Postponement Of Opening Day Until At Least April 14

By Anthony Franco | March 9, 2022 at 10:58pm CDT

Major League Baseball announced it has postponed the start of the regular season for at least another week. A statement from Commissioner Rob Manfred reads:

“In a last-ditch effort to preserve a 162-game season, this week we have made good-faith proposals that address the specific concerns voiced by the MLBPA and would have allowed the players to return to the field immediately.  The Clubs went to extraordinary lengths to meet the substantial demands of the MLBPA.  On the key economic issues that have posed stumbling blocks, the Clubs proposed ways to bridge gaps to preserve a full schedule.  Regrettably, after our second late-night bargaining session in a week, we remain without a deal.

Because of the logistical realities of the calendar, another two series are being removed from the schedule, meaning that Opening Day is postponed until April 14th.  We worked hard to reach an agreement and offered a fair deal with significant improvements for the players and our fans.  I am saddened by this situation’s continued impact on our game and all those who are a part of it, especially our loyal fans.

“We have the utmost respect for our players and hope they will ultimately choose to accept the fair agreement they have been offered.”

The MLBPA offered a statement of its own in response (via Twitter):

“The owners’ decision to cancel additional games is completely unnecessary. After making a set of comprehensive proposals to the league earlier this afternoon, and being told substantive responses were forthcoming, Players have yet to hear back. Players want to play, and we cannot wait to get back on the field for the best fans in the world. Our top priority remains the finalization of a fair contract for all Players, and we will continue negotiations toward that end.”

The league and union had seemingly closed the gap on core economics issues in an effort to hammer out a new CBA. However, the league’s efforts to tie the introduction of a draft for international amateurs to the elimination of the qualifying offer proved a sticking point in discussions. MLB had offered the union three proposals on the matter: 1) accept an international draft in exchange for the elimination of the QO, 2) leave both the QO and international signing period in place as they’d previously been or 3) agree to the elimination of the QO with the chance to reconsider the draft next offseason; taking the third route would’ve given the league the right to unilaterally reopen the CBA after the 2024 season if the union continued to object to the draft.

MLB tabled all discussions on other matters beyond that decision, presenting the MLBPA with an ultimatum — choose one of those courses of action or break off negotiations, which would result in another week’s worth of game cancelations. The MLBPA rejected the league’s proposals, instead putting forth a counteroffer. Jeff Passan of ESPN reports (Twitter link) the union proposed the elimination of the qualifying offer for next offseason with a November deadline for a final decision on the international draft. In the event the union rejected a draft at that point, the QO would return the following winter.

MLB declined to counter that proposal, maintaining that their three presented choices were the only scenarios on the table. The league then moved forward with another week of game cancelations. It’s not clear when the parties will reengage in negotiations, but future discussions now figure to be tinged with a whole host of new complications.

The league’s decision today appears to wipe out the possibility of playing a 162-game season. With the shortened schedule are likely to come debates regarding player pay and service time. Manfred has previously stated it’s the league’s position that players shouldn’t be paid for canceled games. MLBPA lead negotiator Bruce Meyer indicated the union would fight any efforts to prorate pay, noting that the game cancelations have been the sole decision of the league.

It’s frankly baffling that the league and union ended up where they did, given how much ground they’d closed on issues like the competitive balance tax, minimum salary and (to a lesser extent) the bonus pool for pre-arbitration players. Those topics hadn’t been formally settled, but the gaps between the parties’ respective asks on each seemed manageable enough to close with further discussions. Despite the movement on core economics, the international draft and indirectly, the qualifying offer, proved a bizarre roadblock.

The MLBPA has continually maintained an unwillingness to implement an international draft, suggesting that players from Latin America are particularly opposed. However, the league’s offers to take the international draft off the table in exchange for the continued existence of the QO make clear that compensation for signing free agents was an equally important issue. The qualifying offer hasn’t garnered a ton of attention as a contentious problem throughout negotiations.

That’s in part because the league agreed early on to its removal before later tying that to the implementation of the draft. However, it’s also because the union has focused much of its attention on a desire to improve compensation for players earlier in their careers. The qualifying offer isn’t related to those efforts, as it only comes into play for around 10-20 free agents (all of whom are at least quality players with six-plus years of service time) each winter. The MLBPA’s decision to draw a line on the qualifying offer is odd, as is the league’s immediate refusal to continue negotiations and cancel more games after the union’s small modification.

The players’ offer to eliminate the QO for one winter and then reevaluate the international draft in November wasn’t all that different than the league’s proposal to maintain the status quo on both topics. Were the union to refuse the international draft and reimpose the QO in 2023-24, the only benefit beyond what the league had been offering would have been one year of free agency without compensation: a matter that would have affected around a dozen players.

Given how close the parties are, it makes both the union’s decision to introduce this counteroffer and the league’s call to end negotiations look like the creation of an avoidable problem. Now, they’ll have to deal with the new issues of player pay and service time on top of whatever gaps remained in the actual questions of substance on the CBA. How long today’s setback will linger can’t be known, but it’s another blow to fans who’d gotten their hopes up at reports of progress over the past two days.

Andy Martino of SNY first reported the upcoming cancelation of games before the league announcement.

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Latest On Potential International Draft

By Steve Adams | March 9, 2022 at 1:00pm CDT

1:00pm: Alden Gonzalez and Jeff Passan of ESPN add some further details (Twitter links). The top pick’s slot value is actually a slight bit higher than previously reported, landing at $5.5125MM. That’s due to MLB upping the size of each slot value from the weekend by a matter of five percent. Gonzalez notes that MLB is “flexible” on the $20K cap for undrafted free agents, though the extent to which the league is willing to bend isn’t totally clear.

Passan writes that rather than set the draft order based on record, teams would be broken up into “pods” which would rotate every year. Castrovince suggested a similar setup this weekend, writing that pods of six clubs would rotate through the draft order each year; in other words, Pod A would have selections one through six in a given year, then seven through twelve the following season, etc. Passan posits “pod” sizes of seven or eight teams rather than six (thus giving teams a crack at the top of the draft every fourth year rather than every fifth), but the general concept remains the same.

11:50am: Newsday’s Tim Healey tweets that under MLB’s proposal, the international draft would not go into effect until 2024. That’s surely vital for Latin American players, as some prominent figures have stressed that if implemented, the finer details should not be rushed.

Among those prominent voices is Red Sox icon David Ortiz, who spoke passionately in a message to his countrymen from the Dominican Republic today (Twitter thread via ESPN’s Jeff Passan). Ortiz stressed the importance of the league and players working together to get the specifics of the draft right. Ortiz adds:

“Baseball is such a big thing in the Dominican. Baseball keeps kids off the streets. We don’t want that to walk away from us. We want it to get better. That’s my focus. Nothing else. We have the youth. People wanting to be me, Pedro, Pujols. We can’t let that go away. At the end of the day, I don’t want those kids to be affected by it. I already played baseball. I had a career. I care about the kids being treated right. I understand MLB wants to have control over everything they do, but you’re not going to change the system overnight. Baseball is one of the secret weapons of the Dominican economy. If you talk about a draft here in the states, you have choices. You can do football, basketball. … Dominican has baseball to make your way out. That’s it. You have to be careful.”

11:00am: The potential implementation of an international draft has become a focal point in collective bargaining between MLB and the Players Association as gaps elsewhere in negotiations begin to close. Sportsnet’s Ben Nicholson-Smith reported last night that the international draft is one of the largest remaining obstacles in talks. The league, reportedly, is seeking to trade an elimination of the qualifying offer system for the draft — a concept they’d already proposed in prior packages. Of course, everything in these package proposals is dependent on other factors, so the league now using the QO elimination as a “give” in exchange for the international draft likely just reflects the manner in which other elements of the proposals have ebbed and flowed.

In some new developments on the topic of the proposed international draft, Maria Torres and Ken Rosenthal of The Athletic report this morning that MLB’s latest proposal included a slot value of $5.5MM for the No. 1 overall pick (Twitter thread). That’s up slightly from the league’s weekend proposal, wherein MLB.com’s Anthony Castrovince reported that MLB was positing a potential $5.25MM slot value for the first pick of a 20-round draft. Slots would be hard-capped and picks could be traded, per Castrovince, as opposed to the soft-capped “recommended” slot values in the domestic draft, where picks cannot be traded (save for those awarded via the Competitive Balance Lottery). The newly proposed $5.5MM top overall slot value is still miles shy of the $8.415MM first overall slot value from this past summer’s domestic amateur draft; today’s $250K bump narrowly pushes the top international slot’s value past the No. 7 overall slot value from the 2021 amateur draft.

Major League Baseball’s pitch to the union is that the proposed slot values could generate as much as $23MM in additional spending on international amateurs in a given year, per Torres. She adds that the final 100 slots in the draft would be valued at a combined $3.3MM, whereas MLB has pointed out to the union that the bottom 100 bonuses in the past couple of signing periods have averaged about $1.78MM in total. Notably, that particular spin ignores that the “bottom 100 bonuses” in prior signing periods is not necessarily equivalent to the “bottom 100 slots” in an international draft where only a finite number of players (600) can be selected. Torres notes that undrafted international amateurs could still sign, but Rosenthal tweets that bonuses would be capped at $20K.

Regardless of specific permutations on the late rounds and undrafted amateurs, there’s still some considerable pushback against the concept from the players’ end of things — particularly among Latin American big leaguers. Padres shortstop Fernando Tatis Jr. has publicly pushed back, telling El Caribe (Twitter link):

“The International Draft is going to kill baseball in [Dominican Republic]. It’s going to affect us a lot, because there will be many young people who used to give them the opportunity to get a bonus and with the draft it will not be the same.”

ESPN’s Marly Rivera reports that many Latin American players share those concerns, adding that the general sentiment among Puerto Rican players is that their entry into the amateur draft has stunted the development of baseball on the whole. Astros catcher Martin Maldonado, originally drafted by the Angels out of Dr. Juan J. Nunez high school in Puerto Rico, tweeted this morning that he “agrees 100%” with the concerns raised by Tatis.

As Rivera further notes, MLB’s position on the international draft is that it will help to regulate some of the many improprieties that currently exist on the international market. It’s a poorly kept secret that verbal agreements between Major League teams and international amateurs are in place years before those players are eligible to sign on their 16th birthdays; Major League scouts are regularly evaluating players before they even reach their teenage years, and players can have verbal agreements with teams as early as 13 or 14 years of age. Additional concerns include steroid usage among baseball hopefuls during those critical formative years, as well as exploitative behavior from many “buscones” who arrange deals between teams and amateur players.

The pushback from the union, presumably, is that these improprieties can be corrected without the implementation of an amateur draft. Major League Baseball has rules and regulations in place that are intended to bar early agreements of this nature. However, with the exception of former Braves GM John Coppolella being banned for circumventing those rules, punishments have been few and far between. Even after Coppolella’s ouster, early deals have continued. As Mike Axisa of CBS Sports explored recently, MLB could crack down on corruption on the international market by simply choosing to enforce its own typically ignored rules and regulations.

All that said, the draft system does figure to have some benefits for international amateurs. MLB’s current system is hard-capped, and while the draft wouldn’t change that, the simple fact that the combined value of the draft slots being proposed exceeds the combined value of the current international bonus pools means more money will go to those amateurs. Further, even though the league could likely cut down on corruption without implementing the draft, that does not change the fact that the draft ought to nevertheless curtail those early agreements. (Other forms of corruption, of course, will be more difficult to suppress.)

For the players, concerns surely remain about the potential stunting of baseball’s growth in the Dominican Republic, Venezuela, Panama, Colombia and other markets. It’s also a clear negative for a player not to be able to choose his first team and to not be able to negotiate more openly. The draft could potentially lead to fewer high-dollar deals for the market’s very best prospects — depending on the exact distribution of slot values.

Ultimately, given the manner in which the two sides have begun to move closer to an agreement on other elements of the deal, it seems hard to imagine the finer points of an international draft truly scuttling a deal. It’s clear there’s still work to be done, though, and much of it will center around this topic.

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Apple, NBC Agree To Streaming Deals With Major League Baseball

By Steve Adams | March 9, 2022 at 9:05am CDT

March 9: In addition to their deal with Apple, MLB has also finalized a streaming rights deal with NBC Sports, reports Mike Ozanin of Forbes. NBC will purchase the rights to the Monday Night Baseball and Wednesday Night Baseball packages that ESPN did not include in its new deal with MLB. Those games will “mainly” be streamed on NBC’s Peacock streaming service, though specific broadcast details have not yet been announced by MLB or by NBC.

The pair of new streaming deals will pay MLB $115MM annually, Ozanin further reports. MLB’s deal with Apple is a seven-year contract that comes out to $85MM annually. The NBC/Peacock deal is shorter, clocking in at two years and $30MM in annual rights fees. It’s not yet expressly clear that the NBC deal will make those games exclusive to Peacock, but assuming that’s the case (as it is with Apple), the league would be subtracting somewhere around 100 total games (perhaps a bit more) from its MLB.tv package with this pair of new streaming deals.

Under MLB’s previous deals with ESPN, FOX and TBS, the league pulled in an average of $1.55 billion in annual television rights between the regular season and the playoffs. Their newest batch of contracts with those providers, plus the recent additions of Apple and NBC, give MLB a 26% increase in television and streaming revenue — up to an average of $1.96 billion each year, according to Ozanin. That comes out to about $65MM per club, before factoring in each team’s local/regional broadcast contracts.

March 8: Major League Baseball and Apple announced Tuesday that they have agreed to a streaming deal that will see two Friday night games streamed exclusively on Apple TV+ each week, beginning with the 2022 season. “Friday Night Baseball” will feature live pregame and postgame shows and will be available in the U.S., Canada, Australia, Brazil, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. Apple TV+ will also offer a program called “MLB Big Inning” to U.S. viewers, which the press release describes as a “live show featuring highlights and look-ins airing every weeknight during the regular season.”

The new service will allow fans to watch “marquee” games each Friday which will be “free from local broadcast restrictions.” Fans who are frustrated by the blackout issues that have served as a persistent source of consternation for MLB.tv users will surely welcome an alternative — particularly those who are already subscribe to Apple TV+.

However, the Friday Night Baseball deal now removes two games per week from that same MLB.tv package, given that today’s press release from Apple emphasizes the exclusivity of those Friday night broadcasts. That’s sure to raise the ire of MLB.tv users who do not have an active Apple TV+ subscription, as they’ll now be required to sign up for an additional monthly service if they wish to catch those Friday night contests. Today’s press release indicates that “for a limited time,” Friday Night Baseball will be accessible without a subscription but offers no further detail.

Of course, it’s only natural to see Major League Baseball continue to push into the streaming space, as they’ve done in recent years with live-game broadcasts on YouTube and Facebook. Other such deals will surely follow, particularly given how prominent this model is becoming throughout all of professional sports. Amazon Prime began streaming Thursday Night Football games in recent years, for instance, while other services like Peacock, Hulu and Paramount+ have increasingly begun to offer exclusive live sports streams as part of their models. There’s considerable profit to be gained by expanding streaming partnerships in this fashion, even if it comes at the expense of MLB watering down its longstanding MLB.tv offerings.

“Apple is the ideal partner to bring ‘Friday Night Baseball’ to fans around the world,” MLB chief revenue officer Noah Garden said in a statement within today’s press release. “Following milestones like the launch of At Bat on day one of the App Store in 2008 to the integration of Apple technology in ballparks across the country, this robust new game package is the perfect next collaboration in our long history of offering quality and innovative content to our fans. With national availability and international reach, MLB on Apple TV+ offers an exciting new platform to fans that allows a wider audience to connect with the game.”

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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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