MLB and the Players Association (MLBPA) made enough progress in collective bargaining agreement (CBA) negotiations that the league pushed back it’s self-imposed deadline for a new deal to 2 p.m. PT on Tuesday.
Though, they reportedly cautioned it was a more firm deadline and passing it without a new CBA in place would result in Opening Day being pushed back from March 31 and additional regular season games getting canceled.
Even with some of the headway made at Roger Dean Stadium during a marathon bargaining session on Monday, the union continued to stress significant differences remained with the economics of a labor deal.
But just as MLB did with some of their demands, the MLBPA backed off the stance of increasing the percentage of players who would qualify for Super Two status, per ESPN’s Jeff Passan:
The union also dropped its proposal to increase the number of arbitration-eligible players with two years’ service from 22%.
The union had floated various options to change the Super Two system, including a modest increase to just 35%. However, the league has remained adamant moving from the status quo was a non-starter.
While the players relented on that subject, they stuck to an expanded postseason of 12 teams instead of MLB’s preferred model, according to Evan Drellich of The Athletic
The sides are on board with the union’s preferred format for an expanded postseason of 12 teams, rather than the 14 teams the league had sought.
MLB’s preference for a 14-team playoff is tied to a TV rights deal with ESPN. Although contingent, the league was due to receive $100 million if the expanded postseason was 14 teams. Nevertheless, all MLB clubs are due to receive an influx of revenue from national TV deals.
According to reports, MLB attempted to coax the Players Association into a 14-team postseason format by tying it to a $700,000 minimum salary and $40 million pre-arbitration bonus pool. The union has been seeking a $725,000 minimum and $115 million for a bonus pool.
MLB increased luxury tax thresholds & more
The union has asked for the competitive balance tax line to be set at $245 million for the 2022 season and increase to $273 million by the final year of the CBA.
MLB had been countering at $214 million for the 2022 and 2023 seasons, then $216 million, $218 million and $222 million over the remaining lifetime of the CBA. The competitive balance tax was set at $210 million in 2021.
According to multiple reports, MLB’s newest offer includes luxury tax thresholds of $210 million in 2022, 2023 and 2024; $224 million in 2025 and $230 million in 2026. Perhaps more notable, however, is the league no longer is looking to impose harsher penalties for exceeding the CBT.
Luxury tax rates from the prior CBA are expected to carryover at 20% penalty for the first $20 million over the threshold, 32.5% for $20 million to $40 million overage, and 62.5% for spending more than $40 million over.
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