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New MLB CBA's Limits On Spending Brings Game Closer To Salary Cap Than Ever Before

The new MLB CBA that was agreed to Wednesday night once again does not contain a salary cap, but with a "series of new and enhanced drags on spending in the new agreement, the owners have come closer than ever to achieving their dream of a cap," according to Dave Sheinin of the WASHINGTON POST. The players "pressed for, and won," consecutive luxury tax threshold increases, arguing that rising revenues "warranted them." But those gains had a "corresponding cost: the penalties for teams that exceed the threshold reportedly will rise sharply." Under the old terms, teams that exceed the threshold year after year would "never pay a tax rate above" 50%. However, the highest rate "could reach" 90% under this deal. Sheinin: "Whether you call that a 'soft' cap or not, it is the biggest deterrent to spending the game has ever seen -- even if it only effects a handful of large-market teams." Another bargaining issue in the new deal "widely seen as a victory for the players -- the lack of an international draft, which the owners originally pushed for -- might not have been such a clear victory after all." Instead of a draft, the owners "reportedly got an annual cap of around" $5M per team on spending on all foreign-born amateurs. What the owners wanted was an "end to the massive contracts for primarily Latin players," and with the new deal, they "appear to have achieved that" (WASHINGTON POST, 12/2). ESPN.com's David Schoenfield wrote while the new luxury tax set-up is "not a hard salary cap, the new penalties are severe enough that teams -- even the rich kids -- are going to be extremely reluctant" to go over by more than $40M (ESPN.com, 12/1).

INTERNATIONAL INTRIGUE: ESPN.com's Buster Olney wrote the "initial perception is that management got exactly what it wanted in the international market." Players "didn’t like the idea of the international draft, because they believe it limits the opportunities and leverage for players in the Dominican Republic, Venezuela and others." However, the hard cap in spending will "effectively do the same thing for the owners as the draft-slotting system in the domestic draft: contain costs" (ESPN.com, 12/1). Reds Senior VP & GM Dick Williams said, “The hard cap makes it pretty simple that one team can’t pay its way through the penalties. Everybody is going to have the same amount of money. It’ll be a competition over players for the best ones" (CINCINNATI ENQUIRER, 12/2).

TOO EARLY FOR WINS AND LOSSES: FoxSports.com's Ken Rosenthal it is "difficult to judge" how the new CBA will play out because there are "so many different components." He said, "People will have their opinions -- and they have their opinions already. There were certain concessions made by the union here, certain gains made there. Same on the owners' side. But to know fully the impact of this, we won’t know for years.” The N.Y. Post's Joel Sherman said, "You never know how a deal is actually going to work out. I don’t think the union recognized last time how poorly the qualifying offer was going to work out for certain members of its constituency" ("High Heat," MLB Network, 12/1). But on Long Island, Erik Boland writes many people involved with MLB "think the owners overall gained more in the new deal than the players did, though the latter did score some victories" (NEWSDAY, 12/2). In Pittsburgh, Bill Brink notes the players "successfully negotiated a less punitive free-agent compensation system" and they also "received more days off." Owners "did not get the international draft they wanted, but they still received cost certainty in the international market in the form of hard caps on bonus spending" (PITTSBURGH POST-GAZETTE, 12/2).

THE TIE NO LONGER BINDS
: In N.Y., Tyler Kepner notes with the All-Star Game no longer determining home field advantage in the World Series, a sliver of former Commissioner Bud Selig's "wide-ranging legacy has now been undone." But this is a "common-sense solution that ends the charade of tying the outcome of an exhibition to the sport’s signature event" (N.Y. TIMES, 12/2). In Boston, Michael Silverman writes, "Let us sing 'Hallelujah' and count our blessings." The problem was that regular-season excellence "became an afterthought." The best record "meant everything when it came to avoiding a wild card berth and winning home-field advantage in a Division and League Championship Series, but when it came to the ultimate contest, the World Series, the results from an exhibition in July meant more" (BOSTON HERALD, 12/2). In San Jose, Mark Purdy writes "common sense prevailed." Purdy: "You would think that the idea of rewarding a team with a better record by giving it the home field edge in a championship series was ... well, logical. But it’s the first time that’s ever happened" (SAN JOSE MERCURY NEWS, 12/2). In Philadelphia, Matt Gelb writes, "Everyone can agree the new system is fairer" (PHILADELPHIA INQUIRER, 12/2). The All-Star Game now includes a financial bonus for the winning team, and FoxSports.com's Ken Rosenthal said that "should add incentive" and make it so players are "serious" about the game. He noted changes to the home-field tie-in were "overdue," as the idea "had run its course” ("High Heat," MLB Network, 12/1).

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