It’s about damned time. Major League Baseball and the Players Association have agreed on a new labor deal. Baseball is back after a 99-day lockout (assuming the rank and file players accept the deal). The new season start date is April 7th, and the league announced that it would be a complete 162 game schedule. This is great news for all teams as now we won’t see the unbalanced schedule or a repeat of the 1972 season when the Detroit Tigers won the American League East because they played one more game than the Boston Red Sox.
Major League Baseball and the Players Association came together on the core economics of the game and finally came together on an international draft and draft pick compensation for free agents. Here are the key points of the deal and what they mean.
Major League Baseball Economics
The major financial stumbling block was the two sides coming to an agreement on the competitive balance tax. In normal speaking terms, they couldn’t agree on a luxury tax. The luxury tax will start at $230 million in 2022, up from $210 million in 2021 (per MLB). The tax will go up every year throughout the deal, with a final tax number of $244 million for the 2026 season. The other major sticking point for the Players Association was the minimum salary. Players with less than three years’ experience will see their salaries rise to a minimum of $700,000. This figure will go up to $780,000 by the end of the labor deal.
Major League Baseball Rules Changes
The Universal DH
MLB announced some rules changes that will be effective for the 2022 season. The one that every non-traditional fan has been calling for is FINALLY happening! MLB is moving to the universal DH effective immediately. No more seeing .115 hitting pitchers batting 9th in the lineup. No more Bartolo Colon hitting foibles.
The End of the Bullpen Shuttle?
One underrated rule change is that players are now limited to how many times they can be sent down to the minors. This will potentially bring to an end the constant shuffle of pitchers up and down the minors. Once a player has been sent down a fifth time, they must remain on the major league roster if they are called up a sixth time.
The Major League Baseball Postseason Gets Bigger
The playoffs have been expanded once again as part of the labor deal. The playoffs have been expanded from 10 to 12 teams, with the top two division winners earning byes. Pretty soon baseball will be going to a participation trophy for all 30 teams. Who knows, maybe when they expand to 32 teams MLB will move to a single-elimination March Madness-style tournament. Imagine the chaos if the Baltimore Orioles knocked off the Los Angeles Dodgers in the first round of the tournament.
Say Goodbye to the Service Time Manipulation
MLB is now incentivizing teams to bring up their top prospects on Opening Day. Top prospects who finish in the top three of the Rookie of the Year voting will now receive a full year of service time. That’s huge for the players because even if teams don’t immediately call them up, they can still get that full-year towards free agency. There is also an incentive for teams to call up their top prospects, as teams can now earn additional draft picks if those prospects finish either in the top three of the Rookie of the Year or the top five of the MVP or Cy Young votes.
The Draft Lottery
MLB has put an end to tanking in theory as the two sides have agreed to a draft lottery. The top six picks will be awarded via the lottery, and the 18 teams that don’t make the postseason are eligible. The bottom three teams would have the best odds at 16.5%. This won’t guarantee the end in tanking, as teams will try to lose to have the best odds. This is a start though to improve the competitive balance on the field.
The Draft is Going Global
In trade for eliminating draft pick compensation, MLB has agreed to an international draft, which will replace the Latin American signing period. The draft will be 20 rounds, adding 600 players to the minor league rosters. Signing bonuses would be guaranteed for players selected in the draft.
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