![]() For 2017-21, the number of clubs disqualified from receiving revenue sharing money dropped from 15 to 13. An exception was carved out for Oakland pending a resolution of its stadium situation. Under the 2012-16 CBA, clubs in the 15 largest markets were no longer permitted to receiving revenue sharing money, regardless of local revenues. Revenue Sharing: MLB altered the “market rank disqualification” formula used to determine a club’s eligibility to receive revenue sharing money. ![]() In addition, MLB will levy a surtax on clubs exceeding the threshold by $20 million or $40 million. Tax rates are 20 percent for first-time payors, 30 percent for second-time payors, and 50 percent for payors exceeding the threshold for a third consecutive season or more. The top 22 percent of players with two-plus years of service also are eligible.Ĭompetitive Balance Tax: The Competitive Balance “luxury” tax threshold on payrolls will increase from $189 million to $195 million for 2017, $197 million in 2018, $206 million in 2019, $208 million in 2020 and $210 million in 2021. Any player with three years of service and less than six years qualifies for salary arbitration. Salary Arbitration: Eligibility unchanged from 2013-16. For a club losing a free agent who rejected a Qualifying Offer: 1) a club receiving revenue sharing money will receive a draft pick immediately after the first round if the player signs a contract with a total guarantee of $50 million or more, 2) a club paying the Competitive Balance Tax receives a draft pick after the fourth round, and 3) all other clubs receive a draft pick after the Competitive Balance Round B. For the 2017-18 off-season and beyond, new rules will apply for clubs signing free agents who have received Qualifying Offers: 1) a club receiving revenue sharing money will forfeit its third highest remaining selection in the June Rule 4 draft, 2) a club paying the Competitive Balance Tax (“luxury” tax) forfeits its second and fifth highest remaining selections and has its international signing bonus pool reduced by $1 million for the next full signing period, 3) all other clubs forfeit their second-highest remaining draft selection and have their international bonus pool reduced by $500,000. The September 1 roster expansion to 40 players remains in place.įree Agency: Existing compensation rules for clubs losing a free agent remain in place for 2016-17 off-season. Rosters: Existing rules remain in place, with 25-man active rosters on Opening Day and 26 active players for day-night doubleheaders scheduled with at least a day’s notice). ![]() MLB Players Association: Executive Director Tony Clark. Major League Baseball: MLB Commissioner Rob Manfred. 14, 2016 – Owners and players officially ratify agreement. 30, 2016 – Owners and players reach preliminary agreement for new CBA, just the second time they have come to terms on a new labor deal before expiration of the existing contract. A summary of the collective bargaining history between Major League Baseball and the MLB Players Association.
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