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Monday, February 06, 2012

Viva el Birdos:the 2012-16 CBA: the more you know

Nice summary of the new CBA, presented by e.e. cummings.

rule 4 draft

every team will now get a slot-based “pool” for how much they can spend in the top 10 rounds, calculated relative to how many picks they have and how high those picks are. the cardinals, with 6 picks in the top 100 will have a relatively generous cap. the cardinals can spend up to the cap on all their picks through the 10th round. it doesn’t matter how it is distributed within that group; they can spend $100,000 on a first round pick and $1m on a 10th round pick. as long as they don’t spend more in total in the top 10 rounds than is in their pool, there will be no penalty. the ideal is that teams will pay slot for everybody. whether teams obey that kind of logic is yet to be seen.

there are huge penalties for paying more than is in your “pool.” a 5% overage is not a huge deal. let’s say the cardinals got $5m to spend in the top 10 rounds. if they go over by $200,000 (4%), they’d be taxed a further 75% of that $200,000, which would be $150,000. However, if they go over by more than 5%, they get the 75% tax AND they lose next year’s first round draft pick. go over by 10% and the penalty is a 100% tax and loss of next year’s first and second round picks. go over by 15% and you lose your first round pick next year and the year to follow. i read the graduated penalties as giving teams room for small errors or oversights, but imposing very stiff penalties for anything beyond minor discrepancies.

beyond the top ten rounds, you can give anybody a bonus of up to $100,000. anything beyond that counts against your pool fund.

what will be interesting to see is if teams game the system or, if they do, how they do so. as i said, the concept is that teams will pay slot in an orderly way. since there’s a finite pool, any extra money you pay to one prospect must come out of the slot money dedicated to another. but that leaves room to shift salary from one slot to another or even not to sign a player in a given slot, in favor of giving money which should’ve gone to him to another draftee. (ed: this is incorrect. although it does not appear in the summary cited above, baseball america states that when a player fails to sign, the money for that slot comes out of the pool. this woud seem to make a ground-up negotiating process, starting with the 10th round player and moving up to ninth, etc. almost mandatory.)

will teams take a chance in later rounds on signability players and just fail to sign some other players? (ed: as noted above, they’d lose the slot money if a player failed to sign; however the team could draft 30th round talent in early rounds and offer them far below slot talent - or as one commenter at bucsdugout suggested, offer pittances to college seniors, to keep money for above-slot signings elsewhere). if next year’s austin wilson falls to round 8 or even round 12, will some team get creative with their pool funds? i suspect most teams will follow the designed plan, since the risk of not doing so seems pretty high. however, some team may find an irresistable prospect falling in the draft and shift money around to sign him.

the signing deadline has moved up substantially (mid-july) to ensure that players sign fairly quickly—which should be easy to accomplish, there being less room to negotiate as most teams will hew closely to slot offerings….

RoyalsRetro (AG#1F) Posted: February 06, 2012 at 11:20 AM | 10 comment(s) Login to Bookmark
  Tags: amateur, business, international

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   1. Something Other Posted: February 06, 2012 at 03:17 PM (#4054790)
Why isn't this simply a form of illegal price fixing?

How can teams openly conspire to hold down the wages of future employees? I understand teams have a monopoly of sorts, but how can that reasonably be held to include a monopoly position over next year's drafted college players who for the time being are not part of the monopoly?
   2. esseff Posted: February 06, 2012 at 03:27 PM (#4054807)
Why isn't this simply a form of illegal price fixing?

How can teams openly conspire to hold down the wages of future employees? I understand teams have a monopoly of sorts, but how can that reasonably be held to include a monopoly position over next year's drafted college players who for the time being are not part of the monopoly?


Quick answer is that it was collectively bargained.

Deeper issue is whether amateurs players would have any kind of a case against both MLB and MLBPA.
   3. TDF, situational idiot Posted: February 06, 2012 at 05:21 PM (#4054914)
Quick answer is that it was collectively bargained.

Deeper issue is whether amateurs players would have any kind of a case against both MLB and MLBPA.
I'm about as pro-union as they come, but how can the rights of someone not in the union be bargained away? This isn't like a factory where you're a part of the union after a specific probationary period - most of these guys will never make it to the pros, so they'll never be part of the union.

If the UAW tried something like this (say Ford negotiated something with them where pay for all employees (even those who may not be in the union eventually) was dictated) the conservatives would be screaming so loudly the noise might bring down entire cities. And they'd be right.
   4. Squash Posted: February 06, 2012 at 05:53 PM (#4054944)
Wow, looks like Uncle Bud won.
   5. Squash Posted: February 06, 2012 at 05:57 PM (#4054950)
only players who've been with the offering team all season will create an opportunity for compensatory picks. if a trade occurs, nobody will get a pick. on the other hand, if a team knows it lacks the money or interest to make an offer to the player giving rise to compensatory picks, the team will be better off getting what it can and making a trade for another team's prospects instead of letting the player walk at the end of the season.

Some how I hadn't seen this, but this is a big one as well.

And this too:
the other way for clubs to do well in the number of picks they get is to win the lottery. seriously. there will be this very strangely devised lottery for small-market, low-revenue clubs to get a chance at one of six slots at the end of the first round, with the lottery probability dictated by winning percentage. all clubs who receive revenue sharing funds (who did not win one of the 6 slots in the first round) will compete in a similar lottery for one of six slots at the end of the second round.

Huh?
   6. esseff Posted: February 06, 2012 at 06:46 PM (#4054994)
If the UAW tried something like this (say Ford negotiated something with them where pay for all employees (even those who may not be in the union eventually) was dictated) the conservatives would be screaming so loudly the noise might bring down entire cities. And they'd be right.


Wait, isn't this exactly what the UAW did. Negotiated a two-tier wage scale in which current members avoided pay cuts by agreeing that future employees would get less?
   7. Tricky Dick Posted: February 06, 2012 at 08:12 PM (#4055038)
I'm about as pro-union as they come, but how can the rights of someone not in the union be bargained away?


While there are obvious problems with the major league players bargaining on behalf of these players, I think that the player's association can plausibly claim they tried to get some benefit for the drafted players. As I understand it, all of the salaries for slot positions were significantly increased by the CBA over the old informal slot system. There are quite a few teams that followed Selig's slot system, and presumably these teams' draft budgets may increase as a result of the slot salaries increasing. This system at least gives the union some input into the slot salaries which were being secretly churned out by the MLB office.
   8. UCCF Posted: February 06, 2012 at 09:37 PM (#4055094)
So which will be the first team to screw this up and lose a 1st round pick?
   9. Joe Kehoskie Posted: February 06, 2012 at 09:46 PM (#4055100)
So which will be the first team to screw this up and lose a 1st round pick?

It would have to be Yankees vs. the field, although it might not be "screwing up" for a team to do so.

If you're the Yankees and always picking late in R1, it might make sense to sign one impact R1 player in a two-year period (i.e., paying bigger money to a top talent who slips and then forfeiting the next year's R1) than to sign two typical late-R1 picks with lesser upside. (It would take all sorts of luck and scheming to pull it off, but there's upside involved.)
   10. Poster Nutbag Posted: February 06, 2012 at 11:21 PM (#4055169)
I'm about as pro-union as they come, but how can the rights of someone not in the union be bargained away?


Me too (Current NTEU Member), but you'd be surprised. It happens ALL the time, at least around here. Mother worked for the County, and not only did you have to pay the Union even if you were NOT a member, they bargained away rights of non-union employess ALL the time. This also happens to teachers around here.

P.S. I live in California, not N. Korea or anything.

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