Some details on the emerging MLB labor agreement, according
to various media sources:
PAYROLL TAX: Both sides have agreed to a flat 2.5% tax on
player salaries for the first two years. A luxury tax would be
imposed in '97, 98 and 99 with owners paying 35% on all money
spent above a threshold of $51.5M in '97, $54M in '98 and $58M in
'99 (WASHINGTON POST, 8/12). ESPN's Karl Ravech reported the
thresholds will be $51M in '97, $55M in '98 and to-be-determined
for '99 ("SportsCenter," 8/11). ANTITRUST EXEMPTION: In
what Murray Chass writes "could be the most intriguing element of
an agreement," the owners could join the players in asking for a
repeal of MLB's antitrust exemption in relation to labor issues.
The owners' change on that issue is part of a "complex tradeoff"
involving the players' desire for a second tax-free year that
would make it a five-year deal with an option for a sixth. Also,
the players would agree to a decrease in playoff gate revenues
from 80% to 60% while giving the owners the right to expand the
first round of playoffs from five to seven games (N.Y. TIMES,
8/11).
THE OPTION YEAR: If the players exercise their option to
extend to 2001 (a tax-free year), they would return 25% of their
share of first-round playoff revenues for '96-2000, or at least
$20M (Stefan Fatsis, WALL STREET JOURNAL, 8/12). The union's
insistence on a no-tax 2001 had been a "major sticking point"
(Bill Madden, N.Y. DAILY NEWS, 8/11).
EXPANSION: The WASHINGTON POST reports the deal likely will
call for two expansion franchises to be awarded by '99 and be
playing by 2002. Subsequently, owners will work to keep the
Astros in Houston and keep the Northern VA group around for the
next expansion. Monterrey, Mexico, is the other likely city
(Mark Maske, WASHINGTON POST, 8/12).
MINIMUM SALARY: Expected is an increase from $109,000 to
$150,000 next season with further increases later (Peter Schmuck,
Baltimore SUN, 8/12). The minimum would be about $175,000 by the
end of the contract (USA TODAY, 8/12). The union had wanted
$165,000 in '97, $175,000 in '98 and '99, and $200,000 in the
final two years (L.A. TIMES, 8/11).
SERVICE TIME: One person on the players' side, on service
time: "There ain't going to be a deal without it. They know
that" (Murray Chass, N.Y. TIMES, 8/11). In Chicago, Dave Van
Dyck reports, "In the end, it expected [MLB's Randy] Levine will
trade service time for something owners desire even more"
(CHICAGO SUN-TIMES, 8/12).
ARBITRATION: The players will agree to a three-person panel
to decide arbitration cases. Also, the L.A. TIMES' Ross Newhan
reports one possibility is removing or "liberalizing" the 20% lid
on maximum pay cuts in arbitration in exchange for service time
(L.A. TIMES, 8/11).
REVENUE-SHARING: The players have basically agreed to the
terms of the owners' plan. The plan would not take full effect
until 2000, being phased in at 60% each of the first two years,
80% in '98 and 85% in '99 (N.Y. TIMES, 8/11).
DESIGNATED HITTER: ESPN's Karl Ravech reported the players
consider removal of the DH from the A.L. as a "non-negotiable"
issue ("SportsCenter," 8/11).
COMMISSIONER: The issue of a new commissioner "almost
certainly" will not be included in the deal (Mark Maske,
WASHINGTON POST, 8/12). Off the air last night, ESPN's Jon
Miller floated George Will for the job (USA TODAY, 8/12).
