Major League Baseball and the Players Association keep labor peace with new Collective Bargaining Agreement … MLB announces it has reached a tentative five-year agreement with the MLBPA
MLB and the MLBPA agreed to terms on a new CBA on Wednesday night just hours before the Collective Bargaining Agreement was set to expire.
The new CBA is for five years and runs through the 2021 season. In a statement, MLB said “the parties continue to draft the entirety of the tentative agreement. Specific terms of the pact will be made available when the drafting process is complete.”
Commissioner Rob Manfred will meet with the 30 owners Thursday with details of the new CBA according to Bob Nightengale. The Collective Bargaining Agreement still has to be ratified by the owners and players.
Tony Clark and the Players Association released a statement, “I want to thank the Players for working diligently for more than a year to negotiate an agreement that, when finalized, will benefit all involved in the game and leaves the game better for those who follow.”
Details of the new CBA surfaced Wednesday night on Twitter and multiple reports. A full copy of the new Collective Bargaining Agreement will take weeks to put together before it is released to the public.
Here are the highlights and what is known about Baseball’s Collective Bargaining Agreement:
• Luxury-tax threshold will increase to $195 million in 2017 from $189 million and increase incrementally over the course of the five years. Luxury tax thresholds: $195 million (2017), $197 million (2018), $206 million (2019), $209 million (2020), $210 million (2021). The Luxury-tax threshold will max out at $210 million in final year of agreement.
• Active roster for April-August will remain a 25-man roster, no 26th roster spot. Rosters will expand to as many as 40 players in September, same as current rules.
• There will not be an International Draft. International signings will have a cap of $5-6 million per team. It will be a hard cap per team that cannot be exceeded.
• Beginning with 2017-18 off-season (next year) teams will no longer forfeit first round draft picks to sign free agents. Draft pick compensation will remain under current rules this year (2016-17 off-season). In other words, this is the last year that a team will forfeit its first available draft pick to sign a player that has rejected a qualifying offer. Free agent compensation will change next year (2017-18 off-season). Teams over the Luxury Tax Threshold will lose second and fifth round picks and $1 million in International slot money. Teams that sign players attached to draft pick compensation (qualifying offer free agent) that are under the Luxury Tax Threshold will surrender third round pick.
• A player can no longer receive a qualifying offer more than once.
• The team that loses a player that received and rejected a qualifying offer will only get a pick if that player signs a contract for $50 million or more. And the compensation pick that team receives will be based on that team’s market size.
• All other qualifying offer rules will remain the same. Player must be with the team the entire season in order to be eligible for a qualifying offer. If he is traded in-season he is not eligible for a qualifying offer. The amount of the QO will still be determined by the top 125 salaries.
• New MLB players will be banned from using smokeless tobacco. Players already in the majors that use smokeless tobacco are grandfathered in.
• Beginning with the 2018 season, Opening Day will be in the middle of the week which will help create extra days in the schedule. The season will begin four to five days earlier which will increase the number of days in a full season from 183 days to either 187 or 188 days.
• The Oakland Athletics will be “phased out as a revenue-sharing recipient over the next four years.”
More details of the new CBA will be released in the coming days.