With an interim revenue-sharing plan in hand, management
offered the players a revised labor proposal last night,
described by one management official as "a fairly major move"
(Mark Maske, WASHINGTON POST, 3/22). USA TODAY and the L.A.
TIMES both report the details. In L.A., Ross Newhan writes,
"While significant differences remain on threshold and rate,
management's third proposal since Nov. 15 (the union has made
two) seems to make compromise more viable. It contains the most
dramatic changes, perhaps, since the long dispute began --
certainly since the pace began to accelerate this spring" (L.A.
TIMES, 3/22).
PARTICULARS: Management reduced the term of the deal from
seven years to six. In a "bold move," according to USA TODAY,
they also withdrew their sliding payroll luxury tax. In Year 1,
they accept the union's 2.5% overall payroll tax. Year 2: They
reduced their proposed tax from 5% to 3.5% (the L.A. TIMES put it
at only 3%). Year 3: The threshold for a luxury tax is
increased from $44M to $46M, with a 40% tax on all money above
(the L.A. TIMES notes that tax is reduced from 50%). Years 4-6:
Management guarantees the threshold will increase by 7% each
year. Some arbitration demands were also withdrawn, including:
having all awards announced after the final case, doing away with
so-called "Super 2's" in 2000, and not using free-agent deals as
part of the process (Hal Bodley, USA TODAY, 3/22).
