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Collective Bargaining Agreement

MLB, Union To Continue Negotiating Next CBA

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TODAY: The owners made new proposals in regards to the international draft and the luxury tax during today’s talks, FOX Sports’ Ken Rosenthal reports (Twitter links), though progress is still said to be slow.  Talks will continue tomorrow at union meetings in Dallas, where Rosenthal predicts the negotiations “should intensify.”

SATURDAY: A lockout is still a possibility as the league and the union negotiate the next CBA in advance of Thursday’s deadline, but there are strong hopes it can be avoided after MLB offered to remove the current system of draft pick forfeiture associated with the qualifying offer, Jon Heyman of Fan Rag Sports writes. Such a change would make MLB free agency “the freest free agency in sports,” in the words of one of Heyman’s sources. In return, the league wants the players to agree to an international draft.

Under the current system, if a player refuses a qualifying offer, interested teams must give up a top draft choice to sign him. The players dislike this rule because it reduces the market value of players on the edges of the qualifying offer system — including, in recent years, players like Ian Desmond, Kendrys Morales, Stephen Drew and Nelson Cruz. Recently, players such as Neil Walker, Jeremy Hellickson and Brett Anderson have accepted qualifying offers, receiving less long-term security than they perhaps would have gotten on the open market.

The players also do not like the idea of an international draft, which would affect prospects throughout Latin America. Heyman writes, though, that draft pick forfeiture is considerably more costly to them than an international draft would be, particularly since a significant percentage of international bonuses go to players who don’t make the Majors.

Still, there are other topics that must be resolved, Heyman notes. One issue is the luxury tax threshold — the league has reportedly agreed to increase it from $189MM to $200MM, but the two sides have not agreed on a final number.

FOX Sports’ Ken Rosenthal had previously reported that a lockout was a possibility. Reporting since then from Buster Olney and Jayson Stark of ESPN has suggested that there was reason for optimism that a deal could be completed.

Cafardo’s Latest: CBA, V-Mart, Encarnacion, Cespedes, Chapman, Nats, Marlins

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Major League Baseball’s owners and players might not agree to a new collective bargaining agreement before the Dec. 1 expiration of the current CBA, but a lockout isn’t guaranteed if they don’t, reports Nick Cafardo of the Boston Globe. Instead, business could continue under the soon-to-be old CBA as the two sides keep negotiating toward a new deal, even if doing so takes them through spring training.

Here’s more from Cafardo:

  • Although there are some appealing designated hitter types on the free agent market, teams are showing interest in Tigers DH Victor Martinez, according to Cafardo. Given that the Tigers are aiming to get younger and cut payroll, trading Martinez would seem to make sense, as he’ll turn 38 in December and is owed $36MM over the next two years. However, in addition to his lofty salary, Martinez’s 10-and-5 rights could put the kibosh on a potential deal. The switch-hitter recovered from a miserable 2015 to slash .289/.351/.476 with 27 home runs in 610 plate appearances this past season.
  • There’s a “healthy amount” of interest in free agent first baseman/DH Edwin Encarnacion, a general manager told Cafardo, who notes that a signing is unlikely until there’s clarification on the 2017 luxury-tax threshold. “Normally, teams would be very aggressive in getting both of these hitters signed, but right now you have to stay back a little,” an AL GM said in regards to Encarnacion and outfielder Yoenis Cespedes. FanRag’s Jon Heyman reported Saturday that the league has agreed to increase the figure from $189MM to $200MM in CBA negotiations. That could make big spenders like the Yankees and Red Sox more inclined to chase Encarnacion (and maybe Cespedes in New York’s case).
  • The Yankees, Dodgers and Giants are known to be eyeing free agent closer Aroldis Chapman, and the Nationals have also emerged as a possible destination, per Cafardo. Executives around the majors expect aggressiveness from the Nats this winter, and signing Chapman to what should be a record deal for a reliever would certainly qualify as a bold move. Notably, Washington attempted to acquire Chapman from the Yankees over the summer, but he ended up with the Cubs. The Nationals then picked up Mark Melancon from the Pirates. He’s also a free agent now, leaving the Nats in need of late-game help.
  • Along with the previously reported Twins, the Marlins are among the teams with interest in free agent right-hander Justin Masterson. The low-payroll, starter-needy Fish “are looking to hit the jackpot with a surprise pitcher,” writes Cafardo. The 31-year-old Masterson hasn’t pitched in the majors since an unsuccessful 59 1/3-inning run with Boston in 2015. He threw 54 1/3 frames with the Pirates’ Triple-A affiliate last season and recorded a 4.97 ERA, 5.3 K/9 and 4.31 BB/9. Shoulder and knee injuries have beset Masterson in the past, but he indicated earlier this week that he’s now healthy.

Yankees’ Cashman On CBA, Gleyber Torres

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GM Brian Cashman says the Yankees anxiously await the next collective bargaining agreement, and says that previous CBAs have “crippled” them, writes George A. King III of the New York Post.

“The previous CBAs have really hindered us, so I think the next one is something we’re clearly going to be interested in on how it will impact us over the entire course of the term of the contract,” Cashman says. “In the short term, I don’t think it will affect how we do business in 2017. The last few have impacted us exactly as they were expected to and why it was done the way it was. Lot of teams benefited significantly.”

Cashman is referring to the Yankees’ uncharacteristically quiet approach to free agency last season (when they didn’t sign a single big-league free agent), as well as “a lot of the international markets I’ve been taken out of,” presumably including the Yankees’ restrictions on international bonus spending for 2015 and 2016 after their spending spree in 2014. This winter, the Yankees are expected to spend more heavily on the free agent market than they have in the recent past.

Cashman adds that he is excited about top prospect Gleyber Torres, who the Yankees acquired when they sent Aroldis Chapman to the Cubs and who recently won the MVP of the Arizona Fall League at the tender age of 19.

“When I was out there for the GM meetings, I went to see him play and the buzz among all the baseball people, the scouts and front office execs alike was ’this is the best player in the league,'” Cashman says. “And he was the youngest player in the league, so that’s pretty exciting to hear.”

In the 2016 regular season, Torres batted .254/.341/.385 for Class A+ Tampa. Despite his outstanding .403/.513/.645 showing in Arizona, Cashman says Torres will start the 2017 season with Double-A Trenton. MLB.com currently rates him the Yankees’ second-best prospect, behind Clint Frazier.

CBA Notes: Season Length, Roster Size, Luxury Tax, Int’l Draft

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Both Major League Baseball commissioner Rob Manfred and players’ union executive director Tony Clark expressed optimism last month about reaching a new collective bargaining agreement prior to the Dec. 1 expiration of the current CBA. No deal between the league and the union has come since, but the industry isn’t worried about a shutdown, reports Tyler Kepner of the New York Times. The lack of concern is largely because the next CBA is unlikely to include radical departures from the current one. Instead, the expectation is that the two sides are mostly looking to tweak what’s already in place.

Here’s more from Kepner:

  • Shortening the regular season has garnered consideration during negotiations, but the schedule will remain at 162 games in the next agreement. In order to ease the players’ workload, the league and the union could agree to lengthen the season from 183 days to 187, per Kepner.
  • Susan Slusser of the San Francisco Chronicle reported earlier this month that expanding rosters from 25 to 26 players was a possibility, and that’s likely to come to fruition, according to Kepner. Moreover, 40-man rosters in September will unsurprisingly go by the wayside in favor of a 28- or 29-man limit.
  • The $189MM luxury-tax threshold is set to increase, though it’s unknown how much it’ll rise. That change will have a positive effect on big-spending teams that have been reluctant to exceed the $189MM figure. Bumping the number up from $189MM isn’t ideal for teams that have lesser budgets, of course, but Kepner argues that it’s not necessarily cause for despair. Since the current CBA took effect after the 2011 season, 21 of the majors’ 30 teams have made the playoffs, Kepner points out.
  • Owners continue pushing for the implementation of an international draft, but the MLBPA is “deeply skeptical,” Kepner writes. ESPN’s Buster Olney reported in October that a 10-round proposal was on the table for March 2018.

Latest On CBA Talks On Roster Size

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One key element of the current collective bargaining talks is whether there will be any change to the number of players who can be carried on a roster. Negotiations are entering their final phases with the current agreement set to expire on the first of December.

There has reportedly already been consideration of going from 25 to 26 players on the active roster. (Here’s our story from two weeks back; the reporting came via Susan Slusser of the San Francisco Chronicle.) And that concept is still under discussion even as the time nears for the league and the MLB player’s association to wrap up talks, per Ken Rosenthal of FOX Sports.

There’s little question that the 26th man would be a boon to the player’s union, though MLBTR contributor Ryan Spilborghs has argued that it would be beneficial for teams as well. Balancing the cost of thirty new MLB salaries, sources tell Rosenthal, could come in part from new limitations on the size of the active roster in September.

Currently, of course, organizations can utilize anyone on their 40-man roster during the month of September, as Spilborghs also recently discussed. The new rule under consideration might limit clubs to 28 players for any given game during the final full month of the season, with additional provisions allowing that group to be modified — but not every single day.

It’s easy to see the merit in paring back the strange rule that significantly changes the game beginning on September 1. There likely wouldn’t be much of an impact on the transactional world, and it’s hard to imagine any fans taking issue. Adding a 26th man for the full season, though, might shake things up a bit. It would potentially reduce the exposure of players to serious injury, make it easier for clubs to employ specialized players at the major league level, and make the Rule 5 draft a more feasible means of snaring young talent.

Cafardo’s Latest: CBA, BoSox, Bautista, Votto, Tigers, Yanks, Hoyer

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The absence of a new collective bargaining agreement has representatives for top free agents like Yoenis Cespedes and Edwin Encarnacion concerned, and could lead to delays in signing, writes Nick Cafardo of the Boston Globe. The current CBA, set to expire Dec. 1, includes a $189MM luxury tax threshold. Big-spending teams that are near the $189MM figure could hold off on adding high-end free agents (Cespedes and Encarnacion, to name a couple) until the CBA situation is resolved because they might face penalties under the next agreement if the luxury tax number doesn’t increase. One club it will affect is the Red Sox, according to Cafardo, who expects them to pursue Encarnacion if the threshold rises. Otherwise, they’re likely settle for a less expensive bat like Carlos Beltran.

More from Cafardo:

  • Free agent outfielder/designated hitter Jose Bautista “loves” both Boston and Fenway Park, making the Red Sox a potential fit for the longtime Blue Jay, per Cafardo. Further, Bautista has fans in Red Sox manager John Farrell and third base coach Brian Butterfield, both of whom were previously in Toronto. If the 36-year-old doesn’t end up rejoining them in Boston, the Rangers, Astros, Orioles, Cardinals, Giants and Braves are also possibilities (the DH-less National League doesn’t seem ideal, though). First things first, Bautista will have to reject Toronto’s qualifying offer by Monday – which seems like a formality.
  • Reds first baseman Joey Votto could waive his no-trade clause if his hometown team – the Blue Jays – attempts to acquire him, Cafardo suggests, but he adds that a deal is unlikely. Bob Nightengale of USA Today reported earlier this week that the Reds have “no intention” of trading Votto, who is owed $179MM over the next seven seasons.“We’ve traded away a lot of players we’ve drafted and developed. He’s one of the few that remains,” said GM Dick Williams. “There’s a sentimental connection with fans no doubt. But it doesn’t have anything to do with attendance and draw. It’s about performance. He delivers.” The 33-year-old Votto did indeed deliver in 2016, slashing a remarkable .326/.434/.550 with 29 home runs in 677 plate appearances.
  • The Tigers’ plan to get younger and cut payroll is “probably going to be a three-year process,” general manager Al Avila told Cafardo. Avila revealed that he isn’t worried about the luxury tax, saying, “I don’t know what [the luxury tax threshold is] going to be. We’re going to make this change in our business philosophy. We were just trying to get younger and whatever that ends up being, it ends up being. The market will decide what will happen.” The Tigers are reportedly willing to discuss trades involving some of their biggest names, including first baseman Miguel Cabrera, ace Justin Verlander and second baseman Ian Kinsler, and Avila has made it clear that he’s “open-minded in listening.”
  • Yankees left fielder Brett Gardner is a good bet to draw trade interest, reports Cafardo. He’s coming off a 2.4-fWAR season, his fourth consecutive campaign with at least that total. Depending on what happens with his 2019 club option, the 33-year-old Gardner will collect either $25MM or $35.5MM over the next three seasons.
  • Having signed a five-year extension in September, Cubs GM Jed Hoyer is clearly content as a prominent member of the World Series champions’ front office. However, president Theo Epstein’s second-in-command would like autonomy over a baseball department someday. “At some point I would relish [being in charge] again. I aspire to that,” Hoyer said. “But I’m in no hurry. I’ve had opportunities to have that role and I turned them down to stay in Chicago.” Hoyer was previously with the Padres as their GM from 2009-11, but he left San Diego to reunite with Epstein, his former Boston colleague.

Latest On CBA Negotiations: Revenue Sharing, Schedule, Rosters

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Word of various potential changes in the MLB-MLBPA collective bargaining agreement has been trickling out of late, and Susan Slusser of the San Francisco Chronicle reports on a series of new matters under consideration. In particular, she looks at discussions involving the cash flow to the Athletics.

Revenue sharing is the key topic of interest for Oakland, which has been allowed to participate in the system despite its large-market status because of its inability to find a new ballpark. The O.Co coliseum has allowed the team to continue receiving funds, which Slusser pegs at $34MM in 2016.

Some around the game — including rival teams and the union — believe that the A’s aren’t putting those funds to use as intended. Reduction or even elimination of Oakland’s participation has “definitely been a topic” of discussion, a union source tells Slusser.

The interplay with the longstanding stadium question is complicated, as the report details. There’s a concern in some quarters not only that the club isn’t funneling enough cash into player salaries, but also that the team has been slow to settle its ballpark situation. (Of course, there’s a counter-argument to be found as well.)

If the team ultimately has its revenue-sharing pipeline narrowed, with a resulting hit to profitability, sources tell Slusser that there could be ownership changes. That might involve a minority owner leaving or even a full-on sale of the organization, she suggests.

There are a variety of other possible changes being discussed that could have even wider-ranging impact, per the report. That includes the possibility of trimming the regular season down to 154 games and inserting more off-days.

Even more intriguingly, perhaps, there’s apparently at least some consideration being given to expanding rosters from 25 to 26 players. That would certainly reduce the need to utilize the 15-day DL, increase teams’ flexibility to carry more specialty players, and perhaps add to the frequency of reliever usage during the regular season. It would also seem likely to enhance the value of somewhat marginal roster pieces (lefty specialists, power bench bats, glove-first players) who might otherwise be without a spot, while perhaps increasing the viability of the Rule 5 draft and opening service-time opportunities for less-developed players who’d otherwise be left playing in the upper minors.

MLBTR contributor Ryan Spilborghs recently advocated for several such provisions, reasoning that both teams and players could benefit. The current grind is arguably too great, leading to injuries (and rushed returns) that can harm players’ earning capacities as well as the investments already made by organizations.

 

Current CBA Rules Could “Roll Over” Through Offseason

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MLB’s collective bargaining agreement expires December 1, and both MLB commissioner Rob Manfred and MLBPA head Tony Clark have expressed optimism that two parties can avoid a work stoppage. While Manfred had previously said he hoped to have a new deal in place by the end of the postseason, though, Joel Sherman of the New York Post reports that he hears there is still work to be done, even on the day of what could be the clinching game of the World Series.

It is possible, Sherman writes, that rules from the previous CBA could be “rolled over for at least this offseason.” A rollover of the current rules could potentially keep this winter’s free agent market from stalling by allowing free agents to negotiate with teams without either party worrying about how a new agreement might affect them.

Sherman notes that the two sides have batted around a number of possible changes to the qualifying offer system. One possibility is that MLB could agree to stop taking draft picks from teams that sign free agents who have rejected qualifying offers. (As we’ve seen in the cases of Kyle Lohse, Stephen Drew, Ian Desmond and others in recent years, these draft pick losses reduce free agents’ value, which is why the MLBPA would want to change the current rules.)

Sherman writes that, under the changes being considered, teams losing good free agents would still receive compensation. It remains to be seen what form that compensation would take, although it’s worth noting that, under the previous system, a team that offered a Type B free agent arbitration before his departure received a draft pick, without the signing team having to give up anything. Perhaps MLB and the MLBPA will consider reinstituting a similar system for a certain class of free agents.

Heyman’s Latest: CBA, Orioles, Rangers, Jays, Rockies

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Commissioner Rob Manfred expressed optimism about negotiations for a new collective bargaining agreement earlier this month, and players’ association executive director Tony Clark did the same Saturday, according to FanRag’s Jon Heyman. “I’ve always been a glass half-full guy. We continue to work. We continue to go through the issues,” said Clark, who didn’t reveal if the draft-pick compensation attached to the qualifying offer will remain the same in the next CBA. In the current agreement that’s set to expire in December, a team receives a first-round pick if it issues a QO to an impending free agent and he then signs elsewhere.

More from Heyman:

  • The Orioles are still mulling whether to qualify catcher Matt Wieters, relays Heyman, who notes that the next CBA could affect their decision. Baltimore tendered a QO last year to Wieters, who accepted it and remained with the team on a $15.8MM salary. Wieters then had arguably the worst season of his career, hitting .243/.302/.409 in 464 plate appearances and grading poorly as a defender. In the event the Orioles qualify Wieters again and he accepts, he’ll be on their books for $17.2MM in 2017 – his age-31 season.
  • The Rangers are interested in re-signing outfielder Carlos Gomez, reports Heyman. It’s already known that team president and GM Jon Daniels is prioritizing center field, so bringing back Gomez wouldn’t be surprising. The Astros released Gomez in August after a dismal showing dating back to 2015, but he was resurgent down the stretch for a Rangers club that plucked him off the scrapheap. Serving as primarily a corner outfielder while Ian Desmond manned center, Gomez hit .284/.362/.543 with eight home runs in 130 PAs to rebuild some of his stock before free agency. Desmond is also slated to hit the open market, and Daniels observed that he and Gomez “have kind of a similar profile.”
  • Blue Jays outfielder Michael Saunders is another qualifying offer candidate, but it could be “tough” for the team to issue him one, Heyman opines. General manager Ross Atkins said earlier this week the Jays were “still working” on what to do with Saunders, whose 2016 was a tale of two halves. Saunders, 30 in November, slashed .298/.372/.551 in 305 PAs before the All-Star break and posted an ugly second-half line of .178/.282/.357 in 185 trips to the plate.
  • Cubs bench coach Dave Martinez and Indians first base coach Sandy Alomar Jr. seem likely to interview for the Rockies’ managerial opening after the World Series, per Heyman, who also names a few previously reported candidates in Marlins bench coach Tim Wallach, former Padres manager Bud Black, ex-Astros skipper Brad Mills and Rockies Triple-A manager Glenallen Hill.

Rob Manfred On Schedule, Managers, MASN

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David Lennon of Newsday reported in July that Major League Baseball and the players’ union were discussing shortening the regular season, perhaps from 162 games to 154. Those talks are ongoing, according to commissioner Rob Manfred, who told reporters Saturday that the league and the union are “in the midst of conversations” about the schedule. Manfred didn’t offer further details, saying that the topic “belongs at the collective bargaining table, which is where it is right now.” Manfred revealed last week that the two sides should reach a new collective bargaining agreement by the end of the postseason, so a resolution on the length of the season could come soon. The current CBA is set to expire in December.

More from the commissioner:

  • There are only three minority managers in baseball, but Manfred contends that its hiring process “is as strong as possible in terms of making sure that when we have field manager openings … diverse candidates have an opportunity to get those jobs.” Since the regular season ended, the White Sox have promoted former bench Rick Renteria, who’s of Latin American descent, while Ron Washington, an African American, is a finalist for the Braves’ job. Atlanta also interviewed three other minority candidates – Bo Porter, Eddie Perez and Terry Pendleton. Perez is now on the radar of the manager-less Rockies.
  • While Manfred expressed confidence in July that the league would ultimately decide the long-running dispute between the Nationals and Orioles centering on the Mid-Atlantic Sports Network, that’s no longer the case. “I have reluctantly come to the conclusion that that situation is going to play out in the courts, and there’s not a lot that I can do to move that process along,” said Manfred. The Orioles own 90 percent of MASN compared to the Nationals’ 10 percent, and the teams are fighting over how much in broadcast fees the Nats should receive.
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