FREE AGENCY
No change
FREE AGENT DRAFT PICK COMPENSATION
MLB and MLBPA agree to eliminate direct amateur draft-pick compensation, which had existed since 1976 and been in place for qualified free agents since 2012, pending an agreement on an international amateur draft.
A team losing a free agent would receive draft-pick compensation based on revenue-sharing status and whether a club had been over the luxury tax threshold. For a free agent who had spent the entire season with one team, there would would be four compensation tiers based on:
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SALARY ARBITRATION
No change
PRE-ARBITRATION BONUS POOL
A new bonus pool established for those not yet eligible for arbitration, who will split
An eligible player would receive
SERVICE TIME
A full year of major league service will be credited to players who finish first or second in Rookie of the Year voting in each league by the Baseball Writers’
PROSPECT PROMOTION INCENTIVE
A team is eligible for Prospect Promotion Incentive (PPI) draft picks if a rookie-eligible player with 60 days or fewer of major league service who is included on a preseason top 100 prospect list by two or more of Baseball America, ESPN.com or MLB.com is promoted and finishes high in award voting in any year before he is eligible for arbitration. The team would get an amateur draft pick for a Rookie of the Year or a top three in MVP or
LUXURY TAX
First threshold for penalties rises to
Penalties for exceeding the first three thresholds remain the same. For the first, a 20% tax on first-time offenders, 30% for exceeding in consecutive years and 50% for exceeding in three or more consecutive years. The second threshold jumps to 32%/42%/62%, and the third is 62.5%/75%/95%. The new fourth threshold carries rates at 80%/90%/110%.
AMATEUR DRAFT
An NBA/NHL-style draft lottery is instituted for the top six selections. Non-postseason teams are eligible. Teams receiving revenue sharing are ineligible to participate in three consecutive years, teams paying are ineligible in consecutive years. Ineligible teams can select no higher than 10th. The teams with the three-lowest winning percentages have a 16.5% chance to win the lottery, followed by fourth-lowest (13.25%), fifth-lowest (10%), sixth-lowest (7.5%), down to 0.23% for 18th.
MINIMUM SALARY
Rises from
For players signing a second major league contract or later, the minor league minimum rises from
For players signing a first minor league contract, the minor league minimum rises from
POSTSEASON
Playoff field expands from 10 to 12 teams. There will be three division winners and three wild cards in each league.
The top two division winners in each league get first-round byes, and the remaining four qualifiers will play best-of-three game wild-card series. The third division winner will be the highest seed in that group, with other clubs sorted by their win-loss record. Top seeds in each matchup will host the entire series.
The No. 1 seed will host the wild-card winner in the best-of-five Division Series, and the Nos. 2 and 3 seeds will meet. The
DESIGNATED HITTER
Extended to the
AMATEUR DRAFT
Reduced from 40 rounds to 20.
UNIFORMS ADVERTISEMENTS
MLBPA agreed to let MLB add uniform and helmet advertising patches.
REVENUE SHARING
Level is unchanged. Luxury tax proceeds partially used to incentivize growth in local revenue among some teams.
INTERNATIONAL DRAFT
MLB has proposed an international draft of 20 rounds with slot values, similar to amateur draft covering residents of the
OPTIONAL ASSIGNMENTS
A new limit of five optional assignments per season before a player must pass through waivers.
ON-FIELD RULES CHANGES
On-field rules changes, including a 14-second pitch clock with no runners, a 19-second pitch clock with runners, limits on defensive shifts and use of larger bases, can be made with 45 days’ notice by a committee comprised of six management officials, four union representatives and one umpire. Previously, management was allowed to change rules with union consent or unilaterally with one year notice.
GRIEVANCES
The grievance over the shortened 2020 season is dropped. The 2018 grievance over the failure to spending revenue sharing proceeeds by
LENGTH
Five years.
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