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2012-16 Major League Baseball CBA Released to Public PDF Print E-mail
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Written by Maury Brown   
Thursday, 24 May 2012 00:00

It took 183 days, but Major League Baseball and the MLB Players Association have finally finished all the details of the latest Basic Agreement that will run from 2012 through 2016.

The agreement—possibly the most sweeping, ever—was reached on Nov. 22nd of last year. The labor agreement sees everything from two additional playoff teams, a Luxury Tax and other changes to the Amateur Draft, and HGH testing as part of the separate drug agreement, just to name a few.

Some details that were not detailed prior when a summary was released of the memorandum of understanding last Nov.

The agreement has an expansive section on International Play

On the Competitive Balance Tax (CBT), otherwise known as the Luxury Tax, changes will make it harder for those that break the thresholds repeatedly, by increasing the amount paid to as high as 50 percent. Here’s the breakdown:

(a) For a Club that has an Actual Club Payroll above the Tax

Threshold in the 2012 Contract Year, the applicable Competitive

Balance Tax rate shall be:

(i) 20% if the Club did not exceed the Tax Threshold in the 2011 Contract Year;

(ii) 30% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 22.5%;

(iii) 40% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 30%; and

(iv) 42.5% if the Club’s Competitive Balance Tax rate in the 2011 Contract Year was 40%.

(b) For a Club that has an Actual Club Payroll above the Tax

Threshold in the 2013, 2014, 2015, or 2016 Contract Year, the applicable Competitive Balance Tax rate shall be:

(i) 17.5% if the Club did not exceed the Tax Threshold in the preceding Contract Year;

(ii) 30% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 17.5% or 20%;

(iii) 40% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 30%; and

(iv) 50% if the Club’s Competitive Balance Tax rate in the preceding Contract Year was 40, 42.5%, or 50%.

Details on whether there will be an International Draft are also part of the agreement as an attachment. As a matter of upcoming dates on the calendar and activities that would have to occur for an International Draft to take place, the following is part of the attachment:

No draft of international amateur players may be implemented in 2013 unless the following conditions are satisfied by June 1, 2012:

1. A new agreement is reached with the Mexican League consistent with paragraph I.D.10 above.

2. The protocol agreements with the Korean Professional Baseball League, the Japanese Professional Baseball League, and the Taiwan R.O.C. are revised, consistent with paragraph I.D.11 above.

3. A league and/or additional DSL teams to provide playing opportunities for undrafted/unsigned players are organized to begin play no later than June of the year in which a draft covering international amateurs is scheduled to begin.

4. The country-by-country plans referred to in paragraph D.4 above have been completed for the countries of origin of at least 85% of the international players signed in 2011.

5. Appropriate understandings are reached with government officials in the Dominican Republic (and other countries as necessary).

6. Agreement is reached on a procedure for regulating representatives of international amateur players.

F. If it believes that the conditions listed in paragraph I.E above have been achieved by June 1, 2012, the Office of the Commissioner may give notice that it intends to commence operation of a draft (or drafts) covering international amateur players for the 2013 season and subsequent seasons. Written notice of such intent must be provided to the MLBPA by no later than June 15, 2012, and such notice must include a detailed explanation of the rules and procedures that the Office of the Commissioner intends to use for the draft. The MLBPA may veto the commencement of a draft (or drafts) covering international amateur players for the 2013 season and subsequent seasons by providing written notice of its objection to the Office of the Commissioner by July 1, 2012.

G. If a draft (or drafts) covering international amateur players does not commence in the 2013 season, and irrespective of whether the conditions set forth in I.E have been satisfied, the Office of the Commissioner may provide notice to the MLBPA that it intends to commence operation of a draft (or drafts) covering international amateur players for the 2014 season and subsequent seasons. Written notice of such intent must be provided to the MLBPA by no later than June 1, 2013, and such notice must include a detailed explanation of the rules and procedures that the Office of the Commissioner intends to use for the draft. The MLBPA may veto the commencement of a draft (or drafts) covering international amateur players for the 2014 season and subsequent seasons by providing written notice of its objection to the Office of the Commissioner by June 15, 2013.

The current CBA expires on Dec. 1, 2016.

There is much, much more that we’ll detail over several articles now that the document is fully available. You can see all 311 pages of it here:

READ THE 2012-16 MLB CBA IN ITS ENTIRETY


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

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