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Collective Bargaining Agreement Newsbeat

Wednesday, November 08, 2017

SI: How Are Teams Compensated for Losing a Free Agent?

MLB introduced the qualifying offer back in 2012 to replace its old free-agent compensation system in which teams were gifted draft picks based on a calculus that divided players into two pools, Type A (the top 20% available) and Type B (the top 21–40%). But in the latest CBA, the qualifying offer was overhauled. Before, signing teams would have to forfeit their highest draft pick (unless they were in the top 10 of the draft) to the player’s old club. Now, things are a little more complicated.

Apparently it only affects signing one of nine players. Plus there’s a luxury tax element that affects four teams.


Sunday, July 30, 2017

CBA targets international signing violations

Per the CBA’s International Amateur Talent System regulations, under a heading labeled “Circumvention,” no team or player may enter into any understanding, agreement, or transaction, or make any representation, whether implied or explicit, that is designed to defeat or circumvent the provisions of the International Amateur Talent System.”

The CBA then lists “a non-exclusive list of conduct that will subject Clubs (and Club personnel) to sanctions.” Some of the examples:

• Teams can’t pay or promise a player, his family, his trainer or the team/federation representing him anything under the table (or, as the CBA puts it, “anything of value other than the compensation and benefits contained in the Minor League contract.”)

• Teams can’t “make any payments to, or provide anything of value to, an individual advising, representing or training a player.”

• Teams can’t cut package deals with a player’s trainer. That includes “signing other players represented by the advisor or trainer, as consideration for a player entering into a contract with a Club.”


Friday, July 28, 2017

NEWEST CBA COULD DIMINISH BIGGEST SPENDER’S DRAFT PICKS

The new CBA adds two surcharge thresholds on top of the competitive balance tax that was included in the previous CBA. Spend more than $217 million in 2018 and a team will be hit with an additional 12 percent tax on top of the 20 percent, 30 percent or 50 percent tax they will be hit with (depending on how many consecutive years they have exceeded the tax threshold).

But the penalties really kick in for a team that spends more than $237 million in 2018. Not only will the franchise be hit with a 42.5 percent or 45 percent surcharge tax on top of the competitive balance tax, but the team will also see its first draft pick dropped 10 spots. That pick is protected, but that protection is relatively meaningless, as the penalty is applied to the team’s second draft pick only if it’s one of the top six picks in the draft. It would be hard to envision a team finishing with a top-six pick (meaning it had one of the six worst records in baseball) with a $237-plus million payroll.

RoyalsRetro (AG#1F) Posted: July 28, 2017 at 09:36 PM | 5 comment(s)
  Beats: collective bargaining agreement, draft

 

 

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