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MLB News
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Written by Maury Brown
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Monday, 21 November 2011 18:12 |
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Without the rancor that has befallen the NFL and NBA, Major League Baseball and the MLB Players Union will announce a new 5-year labor agreement tomorrow in New York. Commissioner Selig and MLBPA Executive Director Michael Weiner will make the announcement of the memorandum of understanding of the new CBA at 1pm ET.
The deal sees considerable changes from the agreement set to expire on Dec. 11, including changes to the amateur draft, compensation for loss of free agents at both the league and international level, additional players eligible for salary arbitration, blood-testing for hGH has part of the drug policy, the addition of 2 Wild Card teams, interleague play year-round, the move of the Houston Astros to the AL West to balance the league at 15 teams at piece in the AL and NL.
SEE DETAILS OF THE CHANGES EXPECTED TO BE ANNOUNCED TOMORROW
Maury 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, 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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Written by Maury Brown
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Sunday, 20 November 2011 15:30 |
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On Friday, we announced that MLB was on the verge of a new labor deal. Here’s the latest:
One More Day – We said that the deal between MLB and the MLBPA would be announced on Monday. Well…. now, it’s sounding like official word will go down on Tues. with an MOU (memorandum of understanding). What does that mean? The core details will be announced, but the actual legalese that is seen in the current CBA will likely be months from being released to the public.
Minimum Salary to Increase to $480,000 in First Year – The AP is reporting that the minimum salary for MLB players will increase to $480,000, up from $414,000 in 2011, a sizeable increase of 16 percent from the year prior. The AP also reports that later in the deal, the minimum salary will eventually hit the $500,000 threshold. Here is a breakdown of MLB’s minimum salary over the life of the CBA set to be retired, plus the new minimum salary that is being reported for 2012.

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Year
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Salary
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% of Increase
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2007
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$380,000
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--
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2008
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$390,000
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3%
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2009
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$400,000
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3%
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2010
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$400,000
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0%
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2011
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$414,000
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4%
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* 2012
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$480,000
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16%
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* Reported increase for first year of new CBA
Blood-testing for hGH – On Friday, I reported that testing for Human-Growth Hormone (hGH) was coming to MLB, but in some senses it wasn’t much of a surprise. For some time, there had been whispers of it coming to the Majors after being part of the Minors. What was not known as of reporting on Friday was the method for testing. For years, the Players had said that there were serious concerns, not only about testing for hGH, but that using blood-draws would be fought. Well, that seems to have changed as The New York Times is reporting that not only will hGH testing be coming to MLB, but it will be done with blood-draws beginning with entry to Spring Training for the upcoming 2012 season. The NYT is saying that a first-time violation for hGH will result in a 50-game suspension.
While it does not say, it’s likely that if that is indeed the case, hGH will likely fall under the same classification as all other PEDs (minus stimulants) in terms of penalties. If the policy holds for the league drug agreement in the upcoming CBA as is in the current one, a second violation for hGH would result in a 100-game suspension, and a third positive could result in permanent suspension from Major League and Minor League Baseball.
Slotting and a Luxury Tax for Amateur Draft Bonuses – The slotting-system for Draft bonuses was seen as the lynch pin in getting the deal completed. Commissioner Selig and the owners were pushing for hard-slots – a defined bonus depending on where a player was drafted – while the players were against hard-slots saying it was a form of a cap. The solution will be a Luxury Tax that will hit allow flexibility for the players and options for clubs. Reportedly, the slots will be set and based upon that, a total bonus number is calculated. If a club jumps over that total, they’ll be hit with a tax. If this is indeed the system, it allows flexibility for clubs go above slot as they see fit, or possibly restructure bonuses if player and agent reach a deal where one would be paid a bonus under-slot while the difference would be applied to another player to go over-slot.
International Free Agents and the new Luxury Tax Around It – According to The AP, a Luxury Tax for international free agents will also be implemented but that “there will be a separate threshold and tax with penalties, and there will be a study committee that could put a new system in place later during the agreement.”
Draft Pick Compensation – According to Ken Rosenthal of FOXSports.com, the Elias ranking will go away for draft compensation and only free agent players that see “more than $12 million in the first year of the agreement, then will rise in subsequent years” will be deserving of a draft pick compensation for the team losing the player. The AP offers a slightly different description saying:
Starting next year, teams will have to make a "qualifying offer" of a one-year guaranteed contract to their players eligible to become free agents in order to receive compensation if the player signs with another club. That amount will be at least $12.4 million and could rise by next year, depending on a formula. The new "qualifying offer" does away with the statistical formula for ranking free agents that has existed since the 1981 strike
Rosenthal adds that, “A club that signs such a player will forfeit a top pick, but, as in the past, a team that finishes in the bottom 15 of the overall standings cannot lose its first-round selection.” As noted both reports note, the changes will not be effect to impact the current Hot Stove environment, but during the 2012-13 off-season.
More Players in Salary Arbitration, Increased Number of Super Twos – If there’s one thing that has see-sawed over the years, it’s the number of players that are eligible for salary arbitration. As part of the new CBA, approx. 5-6 more players that are “Super Twos” will be eligible. These are players have the highest level of Major League Service Time that are between 2 and 3 years of MLST. The current agreement sees the top 17% of those players in terms of service time. That will rise to 22% for the upcoming agreement.
The Luxury Tax – The Competitive Balance Tax (CBT), or as it’s commonly known as the Luxury Tax that has been part of MLB, stopped at the end of the season. It’s back in the new agreement, with some undefined tweaks. In a sign that the players are happy with where the model currently is, the soft cap for the league will see no changes in the threshold from the 2011 season -- $178 million based on end-of-year salaries (see historical Final Salaries for MLB for 1999-2010).
While final player payroll numbers for the 2011 season are not released until just before Christmas, the Yankees will (yet again) break the threshold. It seems likely that the Phillies will break the CBT threshold for the first time, and the Red Sox are skirting the edge and could be in or out. Either way, the league believes the system puts a drag on overspending, citing a handful of teams outside the Yankees doing so repeatedly (See a complete history of Luxury Tax payments in MLB). What seems certain is MLB will see more than $250 million in monies collected through the tax between the 1997-99 formula and the system that has been in place since 2002 when the numbers are released before the Holiday.
No Luxury Tax in “Reverse” – We reported on Friday that there had been talk during negotiations of a Luxury Tax “in reverse” – a threshold at the bottom of the payroll scale in which clubs would be hit with a tax if they went under a certain player payroll figure. While there were discussions, that seems to have fallen off the table in negotiations and will not be part of the new agreement.
Balanced Leagues, Yearly Interleague, Additional Playoff Teams – This aspect has been known for some time, and made formal as part of the approval for the sale of the Houston Astros. The club will move from the NL to the AL for the 2013 season, and with it, balance out the leagues. Due to 15 teams a piece, interleague will be played in one form or the other during the entire regular season. The move to balance out the league was a want of not only MLB, but the MLBPA and was approved by a vote of more than 75% of the owners with consent from Jim Crane as part of the sale agreement (the vote and consent are highlighted as part of the MLB Constitution, see pages 7 and 8).
The move to a balanced league will allow the addition of two more Wild Cards to the playoffs in 2013 with a one-game sudden-death game being the format.
How Long is the Deal? – The new labor agreement will be 5-years in length. By its expiration, MLB will have seen an unprecedented 22 years of labor peace.
Maury 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, 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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Written by Maury Brown
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Sunday, 13 November 2011 13:11 |
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Working over the weekend, representatives from MLB and the MLBPA appear to have bridged the most difficult aspect of their labor negotiations – a system to allow for draft-related issues.
According to Ken Rosenthal of FOXSports.com, a deal could come as early as today or Monday.
While the current labor agreement is set to expire on Dec 11, there is pressure to reach a deal in advance of several meetings set for this coming week. General Managers are set to meet on Monday and Tuesday with the owners meeting on Weds and Thurs in Milwaukee. The union is holding meetings with player agents from Mon-Weds.
According to Rosenthal, there are other issues that could trip-up an announcement within the next two days. Issues such as draft-pick compensation, the Luxury Tax, a possible international draft, changes to revenue-sharing, hGH testing, and more are said to be part of discussions around the new collective bargaining agreement.
The agreement is believed to be five-years in length. By the time this new agreement expires, MLB will have seen 22 years of labor peace.
Maury 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, 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).
Follow Maury Brown on Twitter 
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Written by Maury Brown
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Sunday, 30 October 2011 21:41 |
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Today, the below 148 players became free agents pursuant to Article XX B (2) of the Basic Agreement (see the list by selecting Read More). The league and MLBPA delayed the start of free agency by 24 hours due to the collective bargaining process, something the league and PA would not address in detail.
This year is different than in years past. Instead of players having to file for free agency, they become automatically available.
Who has the most eligible free agents? The Dodgers have the distinction with 10 players (Jonathan Broxton is but one player). Several teams have eight, with the Brewers (most notably, Prince Fielder), Red Sox (notables include Papelbon, Ortiz, JD Drew and Wakefield), Yankees (notables include Jorge Posada, Colon), and Nationals (notables include Ivan Rodriguez, Livan Hernandez).
Of course, the biggest free agent eligible player out there is Albert Pujols, someone most everybody is watching to see if he can land the most lucrative contract in history with the Cardinals, or elsewhere. Other notable players to watch for are Roy Oswalt, Jimmy Rollins, Vladimir Guerrero, Jim Thome, Magglio Ordonez, Jose Reyes, Heath Bell, Carlos Beltran, Johnny Damon, CJ Wilson.
But, the list could grow further, if options are exercised (see bottom table). There, the likes of CC Sabathia, Rafeal Soriano, Rafeal Furcal, Yadier Molina, Kelly Shoppach, and Jon Rauch lurk.
Free agent players are eligible to negotiate and sign with any Club beginning 12:01 AM EST Thursday, November 3.
SELECT READ MORE TO SEE THE 148 ELIGIBLE PLUS PLAYERS ELIGIBLE FOR FREE AGENCY PENDING OPTION PROVISIONS IN THEIR UNIFORM PLAYER CONTRACT (UPC)
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Written by Maury Brown
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Thursday, 27 October 2011 10:34 |
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Multiple sources to The Biz of Baseball are reporting that Terry Bross, an agent for Phoenix-based Gaylord Sports Management is the agent that allegedly put porn star Bibi Jones in touch with MLB players. Not all that Jones “spent the night with” signed with Bross, but some have. No money ever exchanged hands, and according to Jones, she wasn’t expected to have sex with the players. The activity occurred during 2010.
According to Jones, “It was never expected that I hook up with these guys,” she said. “It was that I wanted to.”
The word of Bross being the agent in question is also being reported by Business Insider.
Maury 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, 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).
Follow Maury Brown on Twitter 
Follow The Biz of Baseball on Twitter
Follow the Business of Sports Network on Facebook
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Written by Maury Brown
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Wednesday, 26 October 2011 19:55 |
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Jed Hoyer is now officially the General Manager of the Chicago Cubs
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THIS IS BREAKING NEWS….
The news has been rumored for some time, and after the Cubs announced Theo Epstien as the new President of Baseball Operations, it was not a matter of when, but if.
With the rainout of Game 6 of the World Series, the Cubs and Padres have used the opportunity to break the news through a joint press release:
The Chicago Cubs and San Diego Padres jointly announce today that Jed Hoyer and Jason McLeod will leave the Padres, effective immediately, to accept positions with the Cubs. The Cubs have agreed to send the Padres a player to be named later as compensation.
Both the Cubs and the Padres intend to hold press conferences after the World Series. The Cubs intend to announce Hoyer as Executive Vice President/General Manager and McLeod as Senior Vice President/Scouting and Player Development, while the Padres intend to announce Josh Byrnes as Hoyer's successor.
Out of respect for the World Series, both clubs have agreed to forego further comment until holding their respective news conferences after the World Series is complete.
What will be interesting is when the Cubs and Red Sox announce what the compensation is for Epstein’s departure from the Red Sox.
Hoyer and Epstein worked closely together in Boston for several years where he held the title of assistant to the general manager when first arriving in 2002. He was briefly co-GM of the Red Sox with Epstein for a little over a year from December 12, 2005 to January 19, 2006
MORE NEWS AS IT BECOMES AVAILABLE
Maury 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, 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).
Follow Maury Brown on Twitter 
Follow The Biz of Baseball on Twitter
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Written by Maury Brown
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Wednesday, 26 October 2011 16:07 |
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Game Six of the 2011 World Series between the Texas Rangers and the St. Louis Cardinals at Busch Stadium in St. Louis has been postponed due to inclement weather and the forecast for rainfall throughout the remainder of the day. Given the desire to play a game of this magnitude without interruption, and an outlook with better conditions over the next two nights, Major League Baseball, along with the Cardinals and the Rangers, determined that making the decision early would be the most prudent course of action to allow fans enough time to plan accordingly.
Game Six of the World Series has been rescheduled for Thursday at 8:05 p.m.(ET)/7:05 p.m. (CT) and will be televised by FOX Sports. Game Seven, if necessary, will be played on Friday at 8:05 p.m. (ET)/7:05 p.m. (CT).
Maury 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, 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).
Follow Maury Brown on Twitter 
Follow The Biz of Baseball on Twitter
Follow the Business of Sports Network on Facebook
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