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Collective Bargaining Agreement Newsbeat

Wednesday, October 20, 2021

New MLB CBA should include amnesty clause

In the absence of new rumors on CBA negotiations, allow us to add a new proposal: the introduction of an amnesty clause. To be clear, this is not a report, simply something that would be good for the health of the sport.

The NBA introduced an amnesty clause in December of 2011, which allowed teams to take a bad contract off their books, sort of. Whatever player the team used the amnesty clause on would still be paid the full compensation owed to them in their current contract. However, said player would no longer be part of their current team, and their often gigantic salary wouldn’t count towards the salary cap anymore.

There, of course, is no MLB salary cap, and to this point there isn’t a suggestion that one is coming. With that said, the Los Angeles Dodgers are the only team currently believed to have a luxury tax payroll of over $210 million, which is when the first penalty kicks in. To their credit, the Dodgers have blown past that number in pursuit of their second consecutive World Series title. Spotrac currently estimates that the Dodgers—who acquired Max Scherzer and Trea Turner, among others, before the trade deadline—have a $253.5 million luxury tax payroll.

Yet, virtually the rest of the league views the luxury tax as some sort of salary cap, some a hard one and others soft. Even those who are willing to go over the luxury tax in a given year, often make sure to dip back under it the next year as the rate climbs to 30% on all overages between $210 and $230 million in a second consecutive year and to 50% for three or more consecutive years. There are also draft pick-related penalties for teams that are more than $40 million over the first luxury tax threshold.

RoyalsRetro (AG#1F) Posted: October 20, 2021 at 01:07 PM | 18 comment(s)
  Beats: collective bargaining agreement



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