Tuesday’s deadline for a new collective bargaining agreement passed without a deal between Major League Baseball and the MLB Players Association, as the players voted to reject the league’s final and “best” proposal before the 5 p.m. ET deadline. Which caused MLB to announce that each teams’ first two series of the regular season will not be played, meaning that the 2022 regular season will begin no earlier than April 7th, while Spring Training games can’t begin any earlier than March 12th.
Last month MLB Commissioner Manfred said that based on injury data and the experience of the 2020 pandemic-shortened season, Spring Training should be at least four weeks long in order for players to properly prepare for the season. Without a deal on Tuesday, that means starting the season later than the scheduled March 31 Opening Day.
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So what’s next and most importantly fans are left asking themselves what’s next?
MLB’s Final and Best Offer
Before we get to what’s next, we should review what was MLB’s “final and best offer. According to MLB.com, here is what MLB offered the players association:
Minimum Salary:
- A $700,000 minimum salary, escalating $10,000 in each year of the deal. That would represent a $129,500 increase from the 2021 minimum salary, the largest single-year increase in the sport’s history.
- The $129,500 increase is nearly five times the $27,500 increase in the first year of the previous CBA, when the minimum salary went from $507,500 to $535,000.
- The $129,500 increase would also be larger than the aggregate increase in the minimum salary over the last 10 years, when it increased from $480,000 in 2012 to $570,500 in 2021.
- Minimum salary would not be fixed, so clubs and players would have the ability to agree to a higher amount, as they could in the previous CBA.
Pre-Arbitration Bonus Pool
- MLB agreed to the union’s proposal to create a centrally funded pre-arbitration bonus pool to reward top-performing pre-arbitration players, and offered a pool of $30 million..
- MLB agreed to expand the number of eligible players to 150 pre-arbitration players.
- On average, the top 30 pre-arbitration players would increase their salaries by 79% under the pool, while 150 total players would receive bonuses for awards and performance.
- MLB proposed forming a Joint Committee (three MLB representatives and three MLBPA representatives) to develop a mutually agreeable WAR statistic to allocate the funds.
Service Time Management
- Players finishing first and second in Rookie of the Year voting would receive a full year of service time regardless of days spent in the Majors. Under this plan, Kris Bryant would have received a full year of service time in 2015.
- Teams could receive selections after the first round of the Rule 4 and International Drafts for promoting top prospects to the Opening Day Rosters (Rule 4 selection for Rookie of the Year win and Top 3 in MVP and Cy Young; International selection for Rookie of the Year 2nd/3rd and Top 5 MVP / Cy Young).
Competitive Balance Tax
- Thresholds:
- 2022-24: $220 million
- 2025: $224 million
- 2026: $230 million
- No changes in tax rates or non-monetary penalties for exceeding thresholds.
Draft Pick Compensation
MLB offered to eliminate direct Draft pick compensation (the qualifying offer system) for all free agents.
Draft Lottery
- Top five selections chosen by NBA-style lottery (the NBA awards top four selections, the NHL awards top two selections via lottery)
- Equal odds for bottom three record (16.5%). Revenue-sharing payees ineligible to be in lottery 3 straight years; non-payees ineligible in consecutive years. Ineligible teams can’t pick higher than 8th overall.
Amateur System
- Proposed increases in the Rule 4 Signing Bonus Values and the International Draft Slots would result in more than $23 million in additional spending on amateur players each year compared to 2019.
- The International Draft would increase spending on international amateur players and maintain the number of players signed, while addressing corruption in multiple ways (including eliminating early deals and introducing mandatory drug testing).
- “Kumar Rocker Rule”: Top-300 players who submit to a pre-draft physical must be offered at least 75% of the Slot Value associated with that selection (currently clubs are not required to make an offer to a player post-Draft)
Other Provisions
- Playing Rules: MLB proposed the formation of a joint Competition Committee comprised of active players, individuals selected by the Office of the Commissioner and an umpire, which would be responsible for recommending and adopting changes to playing and scoring rules (Pitch Timer, Automated Ball-Strike, shift restrictions, and bigger bases).
- Universal Designated Hitter: Creation of 15 jobs that traditionally go to veteran players who are limited defensively. The average salary for a primary DH in the American League in 2021 was $9.2 million, suggesting the change could add $130 million in player salaries.
- Option Limit: Limit of five times per season that a player can be optioned to the Minors.
- Expanded Postseason: 12 teams in each league, with the top two Division winners in each league receiving a bye. Postseason Players Pool would be increased by approximately $15 million from additional games, while 50 additional players would receive Postseason shares each year.
Reactions to the Cancellations
The reactions to the news of cancellations were posted quickly on both the official MLB and MLBPA social media accounts.
“We worked hard to avoid an outcome that is bad for our fans, bad for our players and bad for our clubs,” said Commissioner Rob Manfred while speaking to the assembled media in Jupiter, Fla. yesterday, where the negotiations were taking place. “I want to assure our fans that our failure to reach an agreement was not due to a lack of effort on the part of either party.”
“The clubs and our owners fully understand just how important it is to our millions of fans that we get the game on the field as soon as possible,” said Manfred. “To that end, we want to bargain and we want a deal with the Players Association as quickly as possible.”
The MLB Players Association issued a statement blasting the cancelation of the start of the season.
“Players and fans around the world who love baseball are disgusted, but sadly not surprised,” the Major League Player Association said. “From the beginning of these negotiations, Players’ objectives have been consistent — to promote competition, provide fair compensation for young players, and to uphold the integrity of our market system. Against the backdrop of growing revenues and record profits, we are seeking nothing more than a fair agreement.”
MLBPA executive director Tony Clark said Tuesday in a statement released yesterday afternoon: “Today is a sad day. We came to Florida to navigate and negotiate for a fair collective bargaining agreement. Despite meeting daily, there is still significant work to be done… The reason we are not playing is simple: a lockout is the ultimate economic weapon. In a $10 billion dollar industry, the owners have decided to use this weapon against the greatest asset they have: the players.”
What’s Next?
With all this information laid out, here is what is next for the fans and the baseball world:
Thursday Negotiation Sessions: Obviously, the next steps include getting the two sides back into a room to continue to negotiate, however, that will not happen until at least Thursday according to Manfred. “We’ve [MLB] been informed that the MLBPA is heading back to New York, meaning that no agreement is possible until at least Thursday… The clubs and our owners fully understand just how important it is to our millions of fans that we get the game on the field as soon as possible. To that end, we want to bargain and agree with the Players’ Association as soon as possible.”
Are players ready for Spring Training? Several weeks ago, it was reported that the MLBPA reached an agreement with D-Bat a national baseball and softball training facility with over 100 locations across the country, giving any player with at least one day of service time a free membership through Jan. 2023. The union is also running its own training camp at Bell Bank Park in Mesa, Arizona, and may open a second camp in Florida.
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Tickets for Fans? Obviously, with the first two series of the 2022 season canceled, fans are left wondering what is going to happen to the tickets that they have purchased. According to multiple posts on social media, each MLB team sent out an email alerting their fans about credits, etc… It wasn’t until this morning that the Washington Nationals sent an email detailing their policy around the cancellation of the first two series. “Upon the announcement of an official start date to the 2022 regular season, all unplayed games associated with your season plan will be returned to a credit on your account that you will be able to utilize in the future at your discretion.”
