MLB owners and players "continue to inch toward a labor
agreement," according to Tom Haudricourt of the MILWAUKEE JOURNAL
SENTINEL. "But the key word is 'inch.'" The union's Thursday
counterproposal "represented only slight movement from the
previous position." Sources said the union made only two minor
changes: Giving the owners the option of extending a 2.5% flat
tax on player salaries from three years to five, or switching to
a payroll tax in the fourth and fifth years of a six-year deal.
The union proposed a 30% tax on payrolls above $55M in those
years if total revenues reach $2.7B, or 25% otherwise. There
would be no tax in sixth year. The owners have proposed a seven-
year deal with a flat tax of 2.5% in Year 1 and a choice of
either a 5% flat tax or a 25% luxury tax on all payrolls above
$44M in Year 2. After that, their plan features a sliding tax
based on the percentage of revenues spent on payroll. One
management source: "Our side continues to move. The players
must show they're willing to do the same." A management
counterproposal is expected later this week (MILWAUKEE JOURNAL
SENTINEL, 3/10). One union official, on the state of the talks:
"When you go beyond the first year, the owners seem to be
entrenched and actually hardening their stance. It's very
difficult to read right now" (Peter Gammons, BOSTON GLOBE, 3/10).
OTHER HURDLES: While agreeing on a tax structure "remains
the major obstacle," the WASHINGTON POST's Mark Maske notes the
future of the DH under interleague play and the issue of service
time during the strike could also "prove tricky." One union
source, on service time: "I can't see an agreement without it"
(WASHINGTON POST, 3/10).
