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).