Major League Baseball and the players union recently reached a 5-year labor agreement and with it come some interesting wrinkles on how it might affect operations for a small market team such as the Cleveland Indians. Here are some highlights of the deal.
World Series home-field advantage
Starting in 2017, home-field advantage in the World Series will be awarded to the team with the higher winning percentage in the regular season instead of simply giving it to the league that won the All-Star game.
How it affects the Indians: As a team that has a real shot to repeat as the American League champions, it will also be important to have top regular season record to secure this advantage and the last few games of a season could have more relevance than in the past. Had this been in place during the 2016 season, the Cubs would have had the home-field advantage, not the Indians.
10 Day DL
The 15-day Disabled List has been replaced with a 10-day DL.
How if affects the Indians: The Indians and Manager Terry Francona tend to use a lot of pitchers and continue to keep a stable of MLB-caliber relievers and starters available at AAA Columbus. With a shorter DL span, there might be less reluctance to shut someone down with a nagging or minor injury for precautionary reasons for just 10 games, rather than 15 games.
Minimum salary
The minimums go from $507,500 to $535,000 next year, then to $545,000 in 2018 and $555,000 in 2019, with cost-of-living increases in 2020 and 2021. The minor league minimum for a player appearing on the 40-man roster for at least the second time goes up from $82,700 to $86,500 next year, then to $88,000 in 2018 and $89,500 in 2019, followed by cost-of-living raises.
How it affects the Indians: Although this change might not seem like much in the big picture, for a small market team like Cleveland that watches its pennies and the players involved, minimum salaries will increase and that will cost the team some money. Players such as Tyler Naquin in 2016 or other rookies and players who make the minimum salary (barring any contract extensions) will earn a little bit more cash.
Luxury tax
Thresholds will be $195 million in 2017, $197 million in 2018, $206 million in 2019, $208 million in 2020, and $210 million in 2021. Teams that exceed the thresholds are penalized by 20% for a first-time infraction, 30% for a second-time and 50% for third or more offenses. Additional surtaxes will be applied for teams that surpass the cap by more than $20 million to $40 million and at an even higher rate for those that are $40 million above.
How it affects the Indians: This part of the agreement isn’t a hard salary cap, but it could help keep some of the big market teams from continuing to spend significantly more money than the rest of the league. In turn, this might lower the number of exceedingly high contracts and trickle down a little bit to help the free agent market be a little more affordable for some smaller market teams. Essentially, it provides less incentive for teams such as the Dodgers to sign a multitude of big-time expensive free agents simply because they have the revenue.
Free agent draft pick compensation
If a team signs a free agent who requires compensation, that team is no longer required to give up its first round draft pick to that team that lost him. Instead, teams with payrolls higher than the luxury-tax threshold would have to give up a second-and fifth-round pick. All other teams would give up their third-round pick. Teams losing a free agent who rejects a qualifying offer would still receive a pick from MLB. For most teams, that pick would be a selection following the competitive-balance picks that are awarded after the second round. However, if that team is considered a smaller market team and is receiving revenue-sharing money and loses a free agent who signs a contract worth at least $50 million, that pick would follow the first round. If the team losing the player is over the luxury-tax threshold, the pick would follow the fourth round.
How it affects the Indians: Signing restrictions during the 2016-2017 signing periods carry over into the new agreement. So in the Indians case, if they do sign Edwin Encarnacion during this off-season, they will still lose their first-round pick, which is the 27th in the upcoming 2017 draft. It’s not a small consideration when weighing the pros and cons of signing this slugger for a team like the Indians that needs a good homegrown farm system. In the future, however, the potential hit to the farm system would be lessened when it comes to signing a big-time free agent and this could help the Indians be a little less reluctant to do so if the right fit came along. If the Tribe was to lose it’s own big-time free agent, possibly such as Carlos Santana after 2017, then the Indians (if they are still considered a small market team) could get an extra first-round pick if he signed a contract elsewhere for more than $50 million.
International amateur players signings
Each team is allocated a signing bonus pool. Teams that receive a competitive balance pick in Round A of the draft will receive a pool of $5.25 million. Teams that get a competitive balance pick in Round B of the draft will receive a pool of $5.75 million. All other clubs will receive a pool of $4.75 million and teams can’t exceed their pools, which will grow with industry revenue. Clubs may acquire via trade up to 75% of their pools in the 2017-18 and 2018-19 signing periods, and 60% of their pools in subsequent signing periods. Signing bonuses of $10,000 or less will not count toward a club’s pool.
How it affects the Indians: This makes all teams competitive for international amateur players and means those with the most money can’t simply spend more to sign a player. It will increase the emphasis on scouting and an organization’s analytical information rather than finances. Thus, it should help a small market team like the Indians.
Foreign professional players
These players will continue to be exempt from the pools and are defined as players who are at least 25 years of age and who have played as a professional in a foreign league recognized by the Commissioner’s Office for a minimum of six seasons.
How it affects the Indians: This could create an increased incentive to sign and scout these players with the hope they could contribute quickly at the MLB level without the need for several seasons of play in the minors and without pool restriction or the loss of draft picks.
International Play and Domestic Special Events
MLB and the players union agreed on an international play plan in which teams will stage games or tours in Mexico, Asia, Puerto Rico, the Dominican Republic and London over the next five years in order to grow the game. Players will receive additional compensation for participating in team and league-sanctioned events, in amounts ranging from $15,000 to $100,000 per player depending on the location and schedule. The Commissioner will be able to schedule regular season games at sites other than Major or Minor League stadiums in the United States and Canada, and players will receive additional compensation for participating in those events.
How it affects the Indians: If the Tribe is selected to participate, then it could increase the team’s marketing and player popularity outside the United States and the Northeast Ohio market. That wouldn’t be a bad thing. However, it could mean the some regular games ordinarily played in Cleveland might be scheduled to take place elsewhere.
Add The Sports Daily to your Google News Feed!
