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The owners proposal at the end of last week was largely unchanged from where they’ve been thus far. Minimal movement was proposed on both the minimum salary front and the competitive balance tax.
Regarding the minimum salary, players are looking for a $775k minimum. Owners moved just $15k to $615k in their most recent offer. They also proposed a $630k minimum that would remain flat for players pre-arbitration. Teams can still pay more if they choose, but this is an odd inclusion as many players never reach a second year.
On the competitive balance tax front, the owners moved less than $4 million in any given season. This is a highly contentious issue for the players because owners use the luxury tax as a soft salary cap. Very few teams spend over it and even more spend right up next to it. The luxury tax has not kept up with the revenue increase, and players continue to see less return on their production to the owners bottom line.
That led us to Thursday when the union made their next counter-proposal. It was just five days after the league’s latest offer and substantially quicker than the 42 days and 30 days the owners took between proposals.
In the latest proposal from the union, they dropped the amount of super-2 players getting arbitration from 100% to 80%. In doing so, however, they asked for that pool of funds to be increased. While having fewer players to pay, the stance is that it makes sense for there to be more money to go around.
A couple of developments have circulated since yesterday’s 19-minute meeting. First, an unfair labor practice charge was filed against MLB by someone. The union or any player did not file it, likely a fan. It won’t go anywhere.
The league also presented a calendar, or timeline, as to when the CBA needs to be agreed to for the season to start on time. It’s unclear whether the union agrees with the timeline, but February 28 is the day to remember here.
The players are beginning to use some of their leverage and have told the league not to expect expanded playoffs this season if the year doesn’t start on time. Players are unpaid for Spring Training and the Postseason, while owners make the most money after the regular season concludes.
Both sides are expected to meet in New York near-daily next week. Owners and players are flying in with the goal of hammering out an agreement. We’ll see what the substance of the talks looks like as the days go by.
MLB did release a statement announcing the postponement of Spring Training. It was always inevitable but is now official.
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MLB statement:
“We regret that, without a collective bargaining agreement in place, we must postpone the start of Spring Training games until no earlier than Saturday, March 5th. All 30 Clubs are unified in their strong desire to bring players back to the field and fans back to the stands. The Clubs have adopted a uniform policy that provides an option for full refunds for fans who have purchased tickets from the Clubs to any Spring Training games that are not taking place. We are committed to reaching an agreement that is fair to each side. On Monday, members of the owners’ bargaining committee will join an in-person meeting with the Players Association and remain every day next week to negotiate and work hard towards starting the season on time.”
With the postponement of Spring Training, the Minnesota Gophers announced the cancellation of their exhibition against the Twins on February 25.
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