Major League Baseball (MLB) and the players’ union have entered a new 5-year basic agreement that will last through December 1, 2016, and include many compensation-related items, including:
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- Elimination of most draft-pick compensation for the signing of free agents.
- Comprimise to the bonus slotting system. According to USAToday, teams will be assigned an annual bonus pool, based on revenue and draft position, which will cover bonuses to selections in the first 10 rounds and bonuses over $100,000 to picks in later rounds. Teams that spend over the poll amount will be subject to penalties on a sliding scale. There will also be an additional penalty for “repeaters” based on how many times they have gone over their bonus pool designation.
According to the MLB website, the successful negotiation process, which started in January, can be credited to lead negotiatosr Rob Manfred, MLB executive vice president of labor relations and human resources, and Michael Weiner, executive director of the players’ union.