24 October 2006

New CBA equals minor changes

Details were announced on the new five-year deal struck between MLB and MLBPA. Some important points:
  • As expected, contraction did not rear its ugly head.
  • There was no major revamp of the amateur draft to include certain foreign players.
  • A reduced form of free agent loss compensation remains in place. Type A free agents will now be the top 20% of their position (down from top 30%), and Type B will be 21-40% of their position (down from 31-50%). Type C free agents no longer mandate compensation. Upshot: The A's will get something out of losing Barry Zito.
  • The luxury tax levels stay the same, but the tax threshold has increased to $148 million next year with 4.7% annual increases throughout the life of the CBA. Unless the Red Sox or Mets really went crazy, the only team that would consistently hit the threshold would be the Yankees.
  • Citing the increase of non-local revenue leaguewide, the revenue sharing formula has changed, with each team set to contribute 31% (down from 34%) of their net local revenues minus "actual stadium expenses" (i.e. rent or debt service).
  • League minimum salary increases from $327,000 to $380,000, with $10,000 increases thereafter.
  • Drug policy remains the same and now officially runs concurrent with the CBA. Selig will cite his "blood test study" until he retires.
  • The questionable rule that gives World Series home field advantage to the league that wins the All Star Game remains intact.
The new CBA should not change much things for the A's since they only undergo incremental payroll raises. It'll be interesting to see what happens with the Yanks because their radio deal with WCBS has just expired.