Major League Baseball Labor Agreement Details – KLBK | KAMC

NEW YORK (AP) — Details of the memorandum of understanding reached Thursday by Major League Baseball and the Major League Baseball Players Association, as obtained by The Associated Press.

FREE AGENCY

No change

FREE AGENT SELECTION COMPENSATION

MLB and MLBPA agree to eliminate direct compensation for amateur draft picks, which had existed since 1976 and had been in place for qualified free agents since 2012, pending agreement on an international amateur draft.

A team losing a free agent would receive selection compensation based on revenue-sharing status and whether a club had exceeded the luxury tax threshold. For a free agent who had spent the entire season with a team, there would be four pay tiers based on:

– $25 million in guaranteed salary or $18 million in average annual value (AAV) (third-round choice for the recipient of revenue sharing)

– $55 million or $23 million AAV (choice Comp B for revenue share beneficiary, third round for non-beneficiaries or the team that did not pay the luxury tax)

– $100 million or $30 million AAV (choice Comp A for the revenue share beneficiary, choice Comp B for the non-beneficiary or the team that did not pay the luxury tax, third round choice for team paying revenue share)

– $150M or $40M AAV (Comp A pick and third round pick for revenue share recipient, Comp A pick for non-beneficiary or team that didn’t pay luxury tax , Comp B choice for team paying revenue share)

SALARY ARBITRATION

No change

PRE-ARBITRATION BONUS POOL

A new bonus pool established for those not yet eligible for arbitration, who will split $50 million, who will also be among the 30 teams for the luxury tax. Allocation based on WAR determined by a union-management committee, appearances on an all-MLB team, and recognition as the top position player, top pitcher, and top rookie. Would be distributed among 100 players.

SERVICE TIME

A full year of major league service will be credited to players who finish first or second in each league’s Rookie of the Year vote by the Baseball Writers’ Association of America, as long as they are among the top 100 prospects and haven’t spent the full season on the major league roster. Top prospects who finish in the top three for Rookie of the Year or the top five for Cy Young or MVP earn additional draft picks for teams. The union has the possibility of eliminating this provision during the course of the agreement.

LUXURY TAX

The first threshold of sanctions increases to 230 million dollars, compared to 210 million dollars in 2022, then 232 million dollars in 23, 236 million dollars in 24, 240 million dollars in 25 and 242 million dollars in 26. The second threshold remains $20 million above the first, the third $40 million above the first, and a new fourth threshold $60 million above the first.

The penalties for exceeding the first three thresholds remain the same. For the first, a tax of 20% on first-time offenders, 30% if exceeded during consecutive years and 50% if exceeded during three consecutive years or more. The second threshold increases to 32%/42%/62% and the third to 62.5%/75%/95%. The new fourth threshold brings rates to 80%/90%/110%.

AMATEUR DRAFT

An NBA/NHL style lottery is instituted for the top six selections. Non-post-season teams are eligible. Teams receiving revenue sharing are not eligible to participate for three consecutive years, paying teams are not eligible for consecutive years. Ineligible teams cannot select more than 10th.

MINIMUM WAGE

Goes from $570,500 to $700,000 this year, $720,000 in 2023, $740,000 in 2024, $760,000 in 2025 and $780,000 in 2026.

For players signing a second or later major league contract, the minor league minimum increases from $93,000 to $114,100 this year, $117,400 in 2023, $120,600 in 2024, $123,900 in 2025 and $127,100 in 2026.

For players signing a first minor league contract, the minor league minimum increases from $46,600 to $57,200 this year, $58,800 in 2023, $60,300 in 2024, $62,000 in 2025 and $63,600 in 2026.

POST-SEASON

The playoff field is expanded from 10 to 12 teams. There will be three division winners and three wild cards in each league.

The top two division winners in each league get first-round byes, and the other four qualifiers will play best-of-three wildcard series. The winner of the Third Division will be the highest seed in that group, with the other clubs being sorted by their win-loss record. The top seeds from each game will host the entire series.

DESIGNATED HITTER

Extended to the National League, which previously used it in the pandemic-shortened 2020 season. The DH has been used in the American League since 1973.

AMATEUR DRAFT

Reduced from 40 turns to 20.

UNIFORM ADS

The MLBPA agreed to let MLB add advertising patches for uniforms and helmets.

REVENUE SHARING

The level is unchanged. Luxury tax proceeds were partially used to encourage local revenue growth for select teams.

INTERNATIONAL PROJECT

MLB offered a 20-round international draft with slot values, similar to the amateur draft covering residents of the United States, Canada, and Puerto Rico. If a negotiated deal on a draft is reached by July 25, direct amateur draft compensation would be waived for free agents beginning in the 2022-23 offseason. If the parties fail to reach an agreement by July 25, the direct amateur draft pick compensation would remain in place.

OPTIONAL ASSIGNMENTS

A new limit of five optional assignments per season before a player must go through waivers.

ON-PITCH RULES CHANGES

On-field rule changes, including a 14-second pitch clock with no runners, a 19-second pitch clock with runners, limits on defensive changes, and the use of larger bases, can be made with 45 days’ notice by a committee made up of six management officials, four union representatives and an arbitrator. Previously, management was allowed to change rules with union consent or unilaterally with one year’s notice.

GRIEVANCE

The grievance over the shortened 2020 season is dropped. The 2018 grievance regarding the non-spending of revenue sharing proceeds by Miami, Oakland, Pittsburgh and Tampa Bay remains outstanding.

LENGTH

Five years.

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