MLB’s New CBA, What We Know So Far

Wednesday night, hours before the previous Collective Bargaining Agreement (CBA) expired, MLB and the MLB Players Association agreed upon a new temporary deal. You can find the summary of what we know so far below.

This CBA deal lasts 5 years, through 2021. When it ends, it will mark 27 years of labor peace since 1994.

The regular season will now span over 187 days, four more than 2016.

The MLB will now look to play games outside of Canada and the U.S. Possible locations include Mexico and London.

The luxury tax thresholds go up from $189 million to $195 million in 2017, $197 million in 2018, $206 million in 2019, $209 million in 2020, and $210 million in 2021.

A new tax rate will be put in place for teams who are extremely over the threshold, about $250 million in payroll or greater. According to Joel Sherman, the penalty could be between 50%-60%.

The All-Star Game will no longer determine home field advantage in the World Series, rather the winning team will receive a pool of money. World Series home advantage will be given to the pennant winner that had the better regular season record.

The minimum amount of time a player can spend on the DL is now 10 days, down from 15 last year.

There will be no international draft, but there will be capped spending of about $5-$6 million per team specifically for international signing.

New players are now banned from using smokeless tobacco. Current players will be grandfathered in.

The qualifying offer system has a few changes. A team that loses a player that has turned down a qualifying offer will only receive a draft pick if the player signs a contract worth greater than $50 million. The pick depends on that team’s market size.

With the new CBA deal out of the way, we can head into the Winter Meetings full-swing.

Check back with Ground Rule Triple for a later update as more details come out about the new deal.


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