Commissioner Rob Manfred is pleased there’s a CBA. (Jim Rogash/Getty Images)
Baseball once again has labor peace.
The league and its players on Wednesday night agreed to a new five-year collective bargaining agreement that will eventually raise the luxury tax threshold over $200 million for the first time.
The threshold will increase from $189 million to $195 million in 2017, leaving the Dodgers, Yankees, Red Sox, and Tigers above the limit next season, according to USA Today.
Otherwise, very little changed. Rosters did not expand from 25 to 26, there won’t be an international draft, and expanded September rosters will remain.
One small change affecting relatively few players relates to free agent compensation. Whereas players who declined a qualifying offer once would’ve cost the signing team a first-round pick, they’ll now cost that team a third-rounder if they’re under the tax threshold, or a second- and fifth-rounder if they’re over.
The agreement, which still must be ratified by the owners and players, was reached hours before a Dec. 1 deadline, otherwise the owners had threatened a lockout. It ensures labor peace through the 2021 season, when the luxury tax threshold will expand to $210 million.
The deal is expected to trigger a flurry of moves, with a number of teams — including the Red Sox — reluctant to act until the game’s financial landscape had been established.