Major League Baseball labor agreement details

NEW YORK (AP) — Details of the memorandum of understanding agreed to Thursday by Major League Baseball and the Major League Baseball Players Association, as obtained by The Associated Press.

FREE AGENCY

No change

FREE AGENT DRAFT PICK COMPENSATION

MLB and MLBPA agree to eliminate direct amateur draft-pick compensation, which had existed since 1976 and been in place for qualified free agents since 2012, pending an agreement on an international amateur draft.

A team losing a free agent would receive draft-pick compensation based on revenue-sharing status and whether a club had been over the luxury tax threshold. For a free agent who had spent the entire season with one team, there would would be four compensation tiers based on:

— $25 million in guaranteed salary or $18 million average annual value (AAV) (third round pick for revenue sharing payee)

— $55 million or $23 million AAV (Comp B pick for revenue sharing payee, third round for non-payee or team that did not pay luxury tax)

— $100 million or $30 million AAV (Comp A pick for revenue sharing payee, Comp B pick for non-payee or team that did not pay luxury tax, third round pick for team paying revenue sharing)

— $150 million or $40 million AAV (Comp A pick and third round pick for revenue sharing payee, Comp A pick for non-payee or team that did not pay luxury tax, Comp B pick for team paying revenue sharing)

SALARY ARBITRATION

No change

PRE-ARBITRATION BONUS POOL

A new bonus pool established for those not yet eligible for arbitration, who will split $50 million, which will count equally among the 30 teams for the luxury tax. Allocation based on WAR determined by a management-union committee, appearances on an all-MLB team and recognition such as best position...

source https://www.chron.com/sports/article/Major-League-Baseball-labor-agreement-details-16993049.php