Mlb Labor Agreement

November 22, 2011 by staff 

Mlb Labor Agreement, Major League Baseball and the players union have come to a handshake agreement on a new five-year labor deal, and are now still working out final details and drafting documents in advance of a planned signing and formal announcement on Tuesday, according to SportsBusiness Journal’s industry sources.

The new deal, as expected, primarily builds on the current, now-expiring collective bargaining agreement, with several key refinements.

Among them, MLB will begin blood testing for human growth hormone, a marked reversal of course for a union that once fiercely opposed any collection of player blood.

But the league last year implemented a blood-based HGH program for the affiliated minor leagues with few operational hiccups, and in August notably drew a positive test by former major-leaguer Mike Jacobs, helping elevate the issue.

Provisions around the first-year entry draft, perhaps the most publicly discussed during negotiations, will change markedly with the elimination of existing draft pick slotting system. It will be replaced with a tax structure that penalizes teams for going over a total sum for draft picks, with the tax to begin at $0.75 for every dollar beyond the threshold.

A taxation system also will be implemented on international signings.

Commissioner Bud Selig had been particularly keen on creating spending restraints on incoming players who arrived either through the draft or as an overseas free agent.

And, of course, the shift of the Astros to the American League and the addition of a second wild-card playoff team in each league was announced last week after MLB’s owners meetings.

The new labor deal additionally includes a hike in the minimum player salary from $414,000 in 2011 to $480,000 next year, and ultimately to $500,000 per year.

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