credit card approval odds firestone credit card credit score chevron credit card credit builder pc america credit card processing chase amazon visa rewards card bad credit car finance bristol airmiles credit card td what is the best credit card to have for airline miles average credit card limit good credit best business credit cards for small business 2011 paypal wireless credit card machine amex platinum credit card uk make ann taylor credit card payment cibc canada credit card login best credit card merchant account for small business payday lenders direct no brokers hdfc credit card offer on flipkart apply for credit card canada online average credit card limit 2013 chase credit card settlement department virtual credit card paypal indonesia credit card bank of scotland credit cards with balance transfer offers with 0 interest advance america cash advance reviews business loan with bad credit uk business credit card offers how to calculate credit card interest on a purchase how many first premier credit cards can you have merchant credit card rate comparison will opening new credit cards hurt your credit score visa credit cards numbers and security code barclays credit card application online credit card debt relief hdfc bank credit card net banking login loans with bad credit rating in australia best quick cash loans best credit card app for phone how to activate sbi platinum credit card apply for a credit card online visa list of credit card numbers wikipedia reclaim credit card charges 2011 amazon uk credit card application cash advance fee halifax credit card marriott rewards chase credit card online where to send chase credit card payments direct payday loan lenders uk bank of america credit card processing fees bad credit loans no guarantor review what do all visa cards start with cheapest credit card processing ipad credit card comparison site australia anz platinum credit card travel insurance cibc credit card services online personal online loans in south africa us bank joint credit card application best 0 apr credit cards no balance transfer fee interest free credit cards hsbc best credit cards 2011 no foreign transaction fee virgin credit card bad credit rating annual fee free credit cards australia apply for credit card online hsbc capital city bank credit card online payments request pay advance army air mile credit cards canada apply credit cards india easiest credit card approval 2012 standard chartered credit card application status check singapore best website for comparing credit cards sbi credit card statement online credit card virtual terminal no monthly fee best credit card offer april 2013 discover credit card student loan standard chartered credit card personal loan best credit cards in canada 2012 walmart visa credit card application cash advance fee capital one cash payday advance loans how to check my icici credit card status online payday loan same day cash credit card rates comparison australia ryanair credit card fees 2012 credit card number visa generator low interest no fee credit card australia will opening new credit cards help my credit score capital one secured credit card user review reward cards hearthstone free bad credit bank accounts sbi bank corporate credit card bank of america 2.5 cash back credit card cheapest prepaid credit card usa prepaid international credit card visa no transfer fee credit cards 0 interest online cash advance payday loans best online loans uk virgin credit card contact details tesco bank credit card balance transfers what does pdq credit card machine stand for credit card numbers that work online 2013 instant credit card approval online south africa mastercard credit card insurance coverage report credit card fraud to credit bureau credit card for students with no credit zero interest rate credit card offers what kind of credit card should i get if i have bad credit what happens to credit card debt when you die in pennsylvania best no fee credit card with cashback apply for a debit mastercard online best air miles credit card canada td canada trust visa debit security code what credit card to get at 18 best corporate credit card singapore chase southwest rapid rewards credit card review petro canada gas credit card hbc credit card application marriott rewards premier credit card phone number instant bad credit loans no fees verifone wireless credit card machines secured credit cards uk how to negotiate with credit card companies to pay off balance virgin credit card payment protection insurance best credit card travel offers pay day loans online direct lenders first cash advance midland tx mbna credit card canada review pcs advance travel pay sears credit card special offers vb credit card number validation credit cards for bad credit scores credit card application with low interest rates halifax credit card travelling abroad easy credit card checker 1.2 prepaid canadian tire credit card best buy credit cards make payment starwood preferred guest credit card 30000 citibank college student credit card how to apply credit card in hsbc online philippines virgin credit card 0 balance transfer fee credit card sized mobile phone uk walmart prepaid credit card td visa student credit cards what credit score do you need to get an american express card visa credit card offers calculate credit card interest rate sbi irctc credit card benefits hdfc credit card application form pdf get small business credit card bad credit credit score needed for walmart discover credit card credit card for bad credit with no security deposit request credit limit increase capital one lufthansa miles and more credit card switzerland how to steal credit card information how long does a business have to process a credit card transaction pay off credit card debt with personal loan credit card travel offers india credit card business model ppt gnc gold card free quickbooks online credit card processing canada best hotel rewards credit card uk online credit card validator javascript citibank credit card offer on ebay bp gas reward cards top ten best credit cards for students walmart credit card canada bad credit how to get a visa black credit card prepaid credit card ukash bad credit loans no fees upfront td low interest credit cards credit card comparison purchases 5 most popular credit cards standard merchant credit card fees itunes please enter valid credit card information best travel reward credit cards canada 2013 free master credit card numbers best credit card to have in canada american express delta credit card online payment paying off all credit cards at once secured credit card for bad credit canada best business credit cards with travel rewards hdfc titanium credit card information working visa card generator best visa credit card for college student best credit card payment machine can i claim ppi on my halifax credit card credit card no annual fee india delta airlines credit card no annual fee very low interest rate credit cards nationwide credit card charges abroad virgin credit card minimum payment 2013 best iphone rewards cards app barclays us airways credit card review credit card debt help government how to get credit cards paid off fast uk credit cards with 0 interest on balance transfers staples credit card business login which credit card gives the best rewards in us how to settle for less with credit card companies chase virtual credit card 2011 prepaid reloadable credit cards reloadable credit cards green dot apply for mastercard credit card online payday loan lenders uk not brokers td canada trust first class visa rewards tesco credit card ppi claims virgin credit cards contact best 0 balance transfer credit card 2012 citibank credit card business chase credit card rental car protection how can i cancel my first premier credit card prepaid credit cards travel europe top credit cards for cash rewards credit card compare malaysia cash loans uk bad credit hdfc credit card based loans is it bad to keep applying for credit cards us credit card number for kindle fire which is the best credit card to have in india redflagdeals compare credit cards visa prepaid credit card usa icici credit card with no annual fee in india american express corporate credit card india login capital one secured credit card uk reviews td canada trust credit card balance protection plus personal loan with bad credit paypal prepaid mastercard uk free credit cards weebly change iphone credit card report credit card fraud visa credit card fees hdfc platinum credit card book my show icici virtual credit card paypal halifax student credit card online credit card rewards natwest uk credit card market share credit card processing machines best credit card for limited or no credit history fidelity 2 cash back credit card visa can a credit card company sue you in another state bank of america travel rewards credit cards compare student credit cards uk free iphone applications without credit card quick and easy payday loans bad credit capital one secured credit card for business bad credit no credit loans visa cash card walmart new fees for credit cards 2013 credit card balance transfer no fee how do i pay icici credit card bill online citibank online credit card application status pcs pay advance military pay using visa debit cards in japan credit card companies that will approve anyone how to catch credit card fraudsters instant decision credit cards usa standard chartered bank uae credit card myer visa card review credit card minimum payment calculator excel free prepaid credit card generator top 5 credit card issuers uk prepaid credit card credit builder uk easy credit cards to get approved for with no credit not so good credit cards what is a bad credit score 2013 commonwealth bank credit card insurance zurich how do i combine all my credit cards into one bank of america credit card 200 cash back united cash loans login how to consolidate credit card debt prepaid credit card post office australia chase prepaid visa debit cards credit card transaction fees calculator hsbc neiman marcus credit card login how to use redeem points in citibank credit card free valid credit card numbers with security code 2011 how do you cancel a maurices credit card apply online for a credit card at standard bank apply for credit card bad credit rating halifax visa card protection fast approval payday loans online td emerald visa card application american aadvantage credit card promotion best credit card for students ontario payday loan lenders uk no debit card visa cards numbers free how do you check the balance on a visa gift card online visa credit card exchange rates uk accept credit cards free iphone secured visa credit card cibc use greenwoods gold card american express platinum card benefits review business credit card no foreign transaction fees hdfc credit card indigo offer 2013 credit card services mbna i want a credit card with bad credit anz credit card travel insurance claim form apply for wells fargo secured credit card key bank credit card processing starwood preferred guest credit card business guaranteed payday loan no credit check uk pay sbi credit card bill online icici pay advance loans uk santander cash back credit card annual fee best no interest credit card deals how to choose a credit card uk learn how credit card processing works mbna mastercard uk does wi dmv accept credit cards best credit rewards cards 2011 free visa credit card number and expiration date 2013 best credit cards rewards canada cash advances apply for instant credit card approval credit card number sample with cvv virgin credit card uk contact credit card rate comparison canada has advantage credit card payday loan lenders not brokers for bad credit visa credit card instant approval icici credit card bank statement what bank offers credit cards for bad credit magento 3d secure credit card chevron visa card application status real credit card numbers that work with security code and expiration date 2013 hsbc online credit card payment neft bank of america business credit card login corporate credit card credit check mastercard college student credit cards what age should i get a credit card citibank no credit credit card can you apply for a credit card online quickbooks online processing credit cards best credit card offers for students 2013 td gold elite visa card requirements credit card application lloyds credit card for students with no income cheap and best credit cards in india free no credit credit cards does costco accept credit cards for gas chase credit cards online statements chase credit cards online bill pay barclay credit card account number online payday loans direct lenders texas citi corporate credit card online access cancel my ann taylor loft credit card how to pay off my credit card debt faster gift credit cards ireland best fixed rate credit card deals zero percent interest credit card offers credit cards poor credit unsecured credit card machine for small business paypal wells fargo debit visa card balance mastercard exchange rate tool not working new york and company credit card payment address credit card debt relief programs tesco credit card online my account best rewards visa credit card canada unsecured credit loans for bad credit online loans bad credit uk hsbc visa card exchange rate temporary visa credit card number easy approval credit cards no deposit virgin credit cards sign in chase united credit card login visa debit cards for bad credit virgin credit card contact number uk credit cards visa applications credit card information free hacked chase credit card payments at branch nationwide visa credit card exchange rate best credit card interest rates uk square credit card reader ipad 2 fake credit card numbers with security code 2011 chase rewards cards offer lowest credit card apr payday advance no credit check payday loans online same day deposit best reward credit card 2011 uk pc richards credit card payment number rbs credit card services telephone number how to get an unsecured credit card with no credit sample visa credit card information bank of america credit card international fees venture capital credit card account credit cards that give 2 percent cash back easiest place to get a credit card uk southwest premier credit card benefits what credit cards can i apply for with average credit capital one credit cards for no credit history annual credit report manchester united credit card emirates nbd how do you apply for a credit card yahoo lowest fixed interest credit cards 2012 applying for a secured credit card with bad credit marriott rewards credit card with no annual fee value city credit card payment marathon gas credit card best credit card interest rates balance transfer citifinancial credit card payment address sbi gold credit card limit canadian tire credit card payment credit card rate increase letter chase visa cards with rewards apply for ikea credit card uk can i use discover credit card in canada new york and company credit card customer service phone number what;s the difference between secured and unsecured credit cards barclays apple credit card log in business credit card 0 apr balance transfer best credit card terminal for android black cardboard boxes melbourne new horizon credit card reviews o interest credit cards for bad credit hello kitty visa credit check card business card credit analyst salary direct pay loans american express delta credit card secured credit cards for bad credit with rewards credit card prime rate definition axis bank credit card online application status offer credit card 0 interest rate credit card offer no credit loans online steps on how to prevent credit card fraud visa credit cards wiki best buy reward zone credit card app student cibc visa cards best low interest fixed rate credit cards canadian tire credit card online application reloadable prepaid credit cards canada bank of america credit card travel miles travel rewards cards credit card protection on purchases via paypal iphone credit card scanner app pay jcpenney credit card in store link southwest rapid rewards credit card compare low rate credit cards hdfc credit card loan offers pay hbc credit card online bad credit credit cards guaranteed approval my first premier credit card pay online guaranteed approval credit cards hsbc premier credit card rewards catalog credit card application processing jobs how to pay off credit card debt suze orman store photos of credit cards on iphone vector credit card logos eps unsecured loan bad credit instant decision student credit cards no credit required chase freedom credit card cash advance best student visa card canada citibank credit card offers credit card protection against faulty goods ace cash loans online paypal not accepting prepaid credit cards guaranteed payday loans no credit check no brokers good credit cards with low interest rate free credit card applications for no credit hsbc credit card application declined should i pay off credit card debt or save money direct payday lenders bad credit online what is the best small business credit card processing discover card with no credit history best rewards credit card 2011 australia 1 year post bankruptcy credit cards same day payday loans direct lenders apply for orchard supply credit card visa debit cards wiki cibc credit card login valid credit card numbers generator with cvv when was the first visa credit card issued credit card offers for bad credit unsecured accepting credit cards on your cell phone capital one best buy credit card customer service number barclay credit card application status free air mile credit cards bad credit credit cards no deposit canada low rate credit cards usa how to set up a small business to accept credit cards visa card application status how to apply for a credit card for the first time in india top 100 credit card processors best reward credit cards in the uk how to apply ikea friends credit card what is a credit card number sample best credit card for travel rewards singapore no fee air miles credit cards canada best gas credit cards cash back lloyds credit card application declined what;s the best credit card to get with no credit airline credit card reviews 2013 central bank of india visa debit cards icici credit card offers on jewellery best credit card rate what is the easiest unsecured credit card to get with bad credit walmart visa debit gift card apply for a mastercard debit compare interest free credit cards uk delta air miles credit card canada barclay credit card online banking review best payday loans online direct cash advance loans online
Home Maury Brown A look at the new CBA

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 707 guests online

Atom RSS

A look at the new CBA PDF Print E-mail
User Rating: / 15
Written by Maury Brown   
Wednesday, 25 October 2006 06:07
Yesterday, before Game Three of the World Series, Commissioner Selig and MLBPA Executive Director Donald Fehr announced a new Collective Bargaining Agreement that will run five years and end on December 11, 2011, thus giving baseball an unprecedented 16 years of labor peace between management and the players. No prior labor agreement has been longer in duration.

In a striking case of good relations between the parties, the deal was brokered nearly two months before the deadline of Dec. 19th. The deal was hammered out in sessions that went well into the night on both Friday and Saturday. Owners were briefed on the deal Tuesday. The CBA must still be ratified by both sides before becoming official. When it is ratified, the current agreement will expire and be replaced with the new agreement.

The new agreement will not differ greatly from the current agreement. Key aspects of the new agreement are:

Revenue Sharing

Revenue-sharing will remain in place, with adjustments to the system.

The total of net transferred revenues will remain at the same level as they did for 2006 at $326 million. The net amount transferred will climb over time as revenues increase and with changes in disparity.

One key factor in the new agreement is the setting of a single marginal rate for all the clubs. In the prior agreement, clubs at the bottom of the revenue-making pyramid paid a higher rate than those at the top (by 2005 this rate was 39 percent for the top clubs with the lower revenue-making clubs paying 47%). This had the effect of lower revenue-making clubs not doling out monies in player payroll. It created an environment where it is believed some clubs held on to their revenue sharing dollars instead of reinvesting.

Overall, the rates for the clubs will be reduced to 31% from 40% (high revenue clubs) and 48% (low revenue clubs) under the old agreement. This is a key aspect of the deal as theoretically salaries should go up.

What is unknown at this point is the details around a new central fund redistribution mechanism, which will reduce the marginal tax rates for all recipients. The question is, what is the mechanism? Could MLBAM, television, or possibly secondary ticket sale revenues be pulled in to this fund? Stay tuned.

Lastly, the union asked for, and got, language that will allow them to more easily file a grievance in instances where they feel owners are pocketing revenue sharing dollars. Revenue sharing recipients are to spend receipts to improve on-field performance, but the prior agreement does not stipulate that the monies all be spent at the major league level, thus creating the belief that shared monies were not being spent correctly. This provision adjustment must have been an interesting piece to negotiate. Management has been on record repeatedly that there has never been a grievance filed, and therefore, the clubs were investing per the spirit of the provision. By rewording the provision in the new agreement, MLB could be viewed as agreeing that there may have been improper use of the revenue sharing dollars by some of the recipients.

Competitive Balance Tax (Luxury Tax)

The luxury tax will also remain in place with the figures for the thresholds and the percentage paid for exceeding those thresholds adjusted. Coming to an agreement before the December 19th deadline was crucial as the luxury tax was set to expire at that time. Management was pressured into reaching the agreement before the deadline to ensure that the tax would remain in place. The threshold for the 2006 season was $136.5 million, and will jump to 148 million in 2007, $155 million in 2008, $162 million in 2009, $170 million in 2010 and $178 million in 2011, or approx. 5% a year. clubs that exceed those total team payroll figures would be hit with the tax. The jump from 2006 to 2007 represents an $11.5 million jump from the old agreement to new. Asked at the press conference about this, Fehr was heard to respond that the figure was reached based on MLB's rosy financial well being. The expectations is for revenues to continue to grow, hence the large increase.

On the rates for the tax, they will start at 22½% for clubs over the threshold the first time, 30% for clubs over the threshold the second time, 40% for clubs over the threshold the third time, and repeated at the 40% rate for the remainder of the agreement.

The Yankees are reported to be the only club to break the threshold in 2006 (numbers have not yet been officially released) and paid will the 40% rate this year. That 40% rate will be applied to the Yankees, should they break the threshold in 2007. The Union actually had tried to get the clubs all reset; that is, not hold any clubs accountable for breaking the threshold in the prior agreement. This would have benefited the Yankees almost exclusively, and with that, it's easy to understand why the union backed the reset: When the Yankees escalate player payroll, the other clubs need to follow suit.

Minimum Salary

Minimum salaries for Major League players will increase from the current $327,000 to $380,000 in 2007, $390,000 in 2008 and $400,000 in 2009, with cost of living adjustments (COLA) to 2011. The jump to $380,000 shows a 22% increase from the minimum salary for 2006 of $327,000. With the increase, one wonders if the value of low level talent will be lessened in favor of players that may sit more toward the middle.

Adjustments to the minimum salary structure will be $60,000 in 2007, $62,500 in 2008, $65,000 in 2009.

New minimum for first time roster players of 50% of minor league minimum was announced, but the figure was not revealed.

Amateur Draft

Tired of your draft picks holding out for higher salaries? The new system moves the signing date to August 15th other than college seniors. This might have a negative impact on player development, however, as noted by Dave Cameron at USS Mariner.

The use of what is referred to as the draft-and-follow process with junior college players will be impacted by moving the date up. With the old system, JC players could be evaluated during their season, and still leave time to sign. Now, with the signing date moved forward, the DFE process will be eliminated.

The new system will certainly place a drag on the amount of monies spent in bonus payments to amateurs. Clubs now have the ability to pass on certain players knowing that they will retain a similar pick the next season.

Draft Choice Compensation

There had been word at the end of the summer that draft pick compensation would be fully removed from the CBA. That was not the case, but there were several adjustments to the system.

Starting in 2007, the percentage of Type A players will be lowered to 20% from 30%. A Type A free agent brings two picks to the Club that trades away the player -- one in the first round and one sandwiched between the first and second rounds.

With this adjustment from 30% to 20%, the Type B and C players get impacted.

Type B players become 21 percent - 40 percent at each position (rather than 31 percent - 50 percent in the prior agreement). Type C players are eliminated in 2006.

Also in 2006, compensation for type B players becomes indirect (sandwich pick) as opposed to direct compensation from signing Club.

Type C free agents are eliminated in 2006, so this off-season sees this wrinkle.

Free Agency

The new agreement eliminates the December 7th, December 19th, January 8th and May 1st deadlines for free agents.
Deadline for clubs to offer salary arbitration to their former players who became free agents is moved to Dec. 1 from Dec. 7. The deadline for players offered arbitration to accept offers is moved to Dec. 7 from Dec. 19. The Tender Date is now December 12.

In more detail, the December 7th date was the last day for clubs to offer salary arbitration to their former players who had filed for free agency, and a club not offering arbitration lost all rights to negotiate with and sign that free agent until May 1st. This created lulls where the likes of Roger Clemens' status would hang out there for five months.

The December 19th date was the last day a free agent could be offered salary arbitration by his former club to accept or reject the offer. If a player rejected the offer to go to arbitration, his former club could continue to negotiate with and sign him until January 8th.

The May 1st date was the earliest date a former club could re-sign a free agent player who was not offered arbitration or was offered arbitration on December 7th and remained unsigned after January 8th.

Joint Drug Agreement

The JDA will remain in effect as it was in the prior agreement. There will be no changes to the penalties for violation of the policy. It will now be attached to the CBA, meaning that it will no longer be on a separate cycle than the CBA. This created problems as negotiations in mid-agreement would need to occur.

While the agreement remains the same, it does not mean it is locked for the duration. The sides can add substances to the list deemed in violation of the JDA. If, for example, some reliable method of testing for HGH via urinalysis were to be unveiled, the sides could agree to add a testing protocol for that substance to the list.


While there are a great many details to the agreement that are still unknown, by and large the new agreement seems like a continued step in the right direction. The biggest win in all of this was reaching an agreement in advance of the December 19th deadline, and the length of the agreement. By creating an environment where we will see 16 years of uninterrupted labor peace in baseball, the league should continue to see an increase in revenues, for the most part. After all, it is far easier for businesses to invest in baseball, and the fans invest emotionally in baseball, if they know that the threat of a strike or lockout isn't always looming on the horizon.

As an aside, by the end of this agreement, the chances are we will see not only a new commissioner of MLB, but a new executive director of the MLBPA. If that is the case, let's hope that we see this continued labor peace in the future.


Maury Brown is the editor of The Biz of Baseball and an author for Baseball Prospectus. He can be contacted here.




Should MLB Force Jeffery Loria to Sell the Marlins?