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Leagues and Governing Bodies

Slotting System, Free Agent Compensation Remaining Issues For MLB Labor Agreement

Negotiations in MLB’s "stalled labor talks have taken ‘a step forward’ this week," according to a source cited by Jayson Stark of ESPN.com. A second source said that it is “possible a deal could be completed this week.” However, another source “described the chances of an agreement this week as only about 50-50, saying that the sides had made what appeared to be similar progress in the past, only to get stuck on other issues.” Owners and players “have been stalled for weeks over management's push for a hard slotting system for amateur draft picks.” The MLBPA has “adamantly resisted hard slotting, so the sides have been exploring alternatives based on ‘luxury taxes’ or other incentives designed to keep spending on the draft within more rigid limitations.” The other major issue that is “still unresolved is a change in compensation for premier free agents.” The union “is pressing for a new system that would either no longer require teams to give up first-round draft picks as compensation for signing a top free agent, or would like to reduce the number of players who would qualify as ‘Type A’ free agents” (ESPN.com, 11/9).

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