MLB News: Details of the New CBA

Major League Baseball announced a new collective bargaining agreement Tuesday that covers the next five years through 2016. Here are some of the details (via MLB.com):

  • ASTROS ON THE MOVE: Starting in 2013 the Houston Astros will be moved over to the American League.
  • GETTING WILD: Starting no later than 2013 there will be two wild-card teams in each league that will play a one-game playoff before advancing to the LDS.
  • DRAFT: Soft slotting system. Teams that go 0-5% over, taxed 75%. Teams 5-10% over, taxed 100% and lose 1st round pick. Teams 10-15% over, taxed 100% and lose 1st and 2nd round pick. Teams over 15%, taxed 100% and lose two 1st round picks.
  • THE BRACKMAN RULE: Amateur players are no longer allowed to sign major league contracts.
  • PAYS TO BE POOR: The 10 lowest revenue teams and the 10 teams in the smallest market will be put into a lottery where six of them will get an extra draft pick.
  • IFA SIGNINGS: Teams are limited to $2.9 million to spend on international free agents under the age of 23. Teams will be allowed to trade for the rights to another team’s IFA spending money up to 50%.
  • YANKEE TAX: The luxury tax threshold remains at $178 million. It will increase to $189 million in 2014. Repeat offenders are taxed at 50% instead of 40%.
  • SUPER-TWOs: As it stands the top 17% of players will more than two years of MLB service time but less than three are arbitration eligible. That number increases to 22 starting after 2012.
  • TYPE-A & B FREE AGENTS: This offseason Type-B’s will be done away with. Most Type-A don’t require a team to give up their draft picks for. However the elite Type-A’s will still cost a pick this offseason.
  • COMPENSATION IN 2013: Next offseason the system changes. There will be no more Elias rankings. Instead, teams that make a qualifying offer of at least $12 million will be rewarded a draft pick if that player signs with another team.
  • HGH TESTING: Testing will not start until spring training. Penalties are the same as testing for PEDs (1st: 50, 2nd: 100, 3rd: year).
  • LET’S SEE THAT AGAIN: Instant replay will be expanded to fair and foul calls as well as to trapped balls.
  • THE TITO FRANCONA RULE: Players are no longer allowed to use tobacco in front of the fans. That includes having a huge ball of chew in their mouths making them look like a chipmunk.
  • DEREK JETER RULE: Players picked for the All-Star game must play unless injured or excused by the commish.
  • THE LOGAN MORRISON RULE: Players are now subject to rules regarding social media.

The new rules for the IFA’s are extremely severe and will not only hurt the Yankees, but could threaten to kill the IFA-market all together as this greatly decreases their incentives. Specifically for the Yankees, it hurts their advantage to use IFA’s as a way to make up for poor draft position. It almost kills any chance they have for signing an elite amateur player.

The new draft rules will also effect the Yankees and their ability to go overslot, but it will hurt small market teams like the Rays and the Pirates, who use the draft to make up for inequalities in the free agent market.

The new compensation rules make it easier for the Yankees to obtain major league talent without worrying about losing their draft picks (i.e. it wouldn’t have cost them a draft pick to sign Rafael Soriano a year ago).

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6 Responses to MLB News: Details of the New CBA

  1. Susan says:

    Overall I like the new agreement. Especially the HGH testing. I'm not a fan of replay on any level in any sport. As always the luxury tax is total liberal socialist bullshit aimed at trying to bring down the mighty Yankees. I was against adding another wild card but since it will only be a one game series, I'm more open to it. Looks the the AL East will get three teams in the playoffs now, most of the time. As for the Astros coming to the AL it doesn't excite me much. The worst team in baseball by a lot. But evening up the leagues is good idea. I just wish someday they'd start using the DH in the NL.

  2. Gonzalo says:

    I like the new agreement, but it's really bad for international signings, what about teams spending in baseball schools in latinamerica.
    Also I didn't understand that rule, Is it just for expensive guys like Aroldis Chapman or How does it work exactly?

  3. Fred says:

    Is it really called the Derek Jeter rule? Low blow. Also anyone who wants to miss the All Star game will simply claim that they're injured…

    They should call the extra wild card the Boston Red Sox Rule

  4. Bronx_Knight says:

    I like the extra wild-card quite a bit; it keeps more teams in the loop, and gives a dramatic one-game showdown, without really affecting the dynamics of the playoffs. interestingly, having the extra wild-card, actually diminishes the value of earning a wild-card slot. With a one-game playoff, you really have only a 50-50 shot to make it to the next round. Plus the wild card that makes it through to the playoffs will likely have their rotation out-of-sync by the extra game. All in all, the extra wild card makes it much more important to actually win your division and not have to go through a one-game mini-playoff crapshoot.

    The international free agent restrictions are terrible. Baseball has been immensely enriched by the inflow of talented foreign players. Having foreign MLB stars also has helped boost baseball into a truly international game, in Latin America, Northeast Asia, and, to a lesser extent, Europe. I just don't understand why we would want to make it harder for talented foreigners to play big-league ball.