Nov
22
2011

Baseball Shoots Themselves In The Foot Again

I wonder what my fellow Mets fans think of this Luxury Tax and Penalties that the new CBA will institute for the Amateur Draft and International Free Agent spending. NBC Sports has a an excerpt I want you yo read:

Specifically, the tax on amateur draft bonus seems downright punitive. If teams exceed the bonus limit set by Major League Baseball by more than 5%, they get hit with a 75% tax. If they exceed it by between 5 and 10%, they get a 75% tax and they lose a first round pick the next year.  If you’re 10-15% over, it’s a 100% tax and the loss of a first and second round pick. Fifteen percent or higher a  is 100% tax and the loss of two first-round picks.

I think this is absolutely terrible and will ultimately hurt the Mets in the short and long term. I don’t see how this new provision will serve as an incentive for the best amateur athletes to choose baseball over football and basketball. Especially high school players. MLB just shot themselves in the foot as far as I’m concerned.

I just don’t see the benefit here, this will now weaken the available talent pool on draft day significantly.

Also, it looks like the MLBPA sold out big time. Shame on them, and I’m shocked that player agents didn’t try to stop this from happening.

Maybe I’m overreacting, I don’t know, what are your thoughts?

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About the Author: Drew Staley

On June 1, 2012 Johan Santana officially became my favorite current Met! I'm a Queens native who grew up in the shadows of Big Shea. I was a huge Ron Darling, Dave Magadan and John Olerud fan. Honored to be a part of such a great site for Mets fans. Ya Gotta Believe!

23 Comments + Add Comment

  • So, the Mets finally catch up to the rest of class at acquiring amateur talent and MLB clamps down on it. Wonderful.

    And now, top high school prospects have even more incentive to take those football and basketball scholarships and stop playing competitive baseball altogether. Keep in mind, MLB also has more restrictions on college players than the NBA or NFL.

    “I just don’t see the benefit here.

    Also, it looks like the MLBPA sold out big time and I’m shocked that player agents didn’t try to stop this from happening.”

    Actually, it was MLBPA that was pushing for this, along with some owners. They wanted to put more incentive to signing free agents to big deals and put less emphasis on the draft and IFAs.

    • Thanks for sharing that, I was unaware that the union pushed for this. Terrible decision by them.

      • protecting the members like any other union. pretty sure the guys in the minors aren’t covered, so the union doesn’t care what they get.

    • WHEN PROGNOSTICATING WHAT DECISIONS MULTI-SPORT-TALENTED “KIDS” WILL CHOOSE, IT’S BEST TO REALIZE THE MOST ASTUTE WILL CERTAIINLY HAVE AT LEAST 1 PROFESSIONAL SDVISOR(AGENT) IN HIS EAR.

      COMPARED TO NFL & NBA MLB HAS ALWAYS HAD 1 BIG HINDERANCE ALONG WITH ONE SUPERSIZED ADVANTAGE.

      THEIR HINDRANCE: TIME IT TAKES TO MAXIMIZE EARNINGS

      THEIR ADVANTAGE: G U A R A N T E E S!!!!!

      MLB WILL STILL WIN OUT TO THOSE CHOOSINMG THE WIDE-ANGLE LONGTERM VIEWPOINT. IN A CONTRACT OFFER DECISION POINT WHEREBY THE HIGHLY TOUTED QB,SP CANDIDATE IS OFFERED A 20M DEAL WITH A 500K SIGNING BONUS THE AGENT & PLAYER CAN ONLY RELY UPON GETTING THAT MEASLY 500K WHEREAS THE MLB OFFER OF 3Y/15M ALONG WITH A 100K SIGNING BONUS HE & HIS RE4PRESENTATION CAN STROLL INTO ANY CONSERVATIVE BANK TO GET A 30 FIXED @ THE BEST RATES BASED ON THAT RELIANT INCOME BASE. ALL OF THAT MLB MONEY WILL EVENTUALLY BE HIS WHETHER HE PANS OUT OR NOT

      THE RULES HAVE BEEN CHANGED & JUST AS THEO & BILLY WERE THE QUICKEST TO MAP OUT THE OLD SYSTEM’S QUIRKS; THE FUTURE WILL BELONG TO THE CLUB WHOSE GM IS QUICKEST TO MAXIMIZE HIS ADVANTAGES UNDER THESE NEW GUIDELINES.

      I WOULD HOPE & PRAY 3-EXPERIENCED CONIVING HEADS(ALDERSON,RICCHARDI,DiPODESTA) IS AN ADVANTAGE TO OUR SIDE JUST THIS ONCE!

  • Also, players will be subject to regulations regarding their use of social media.

    I guess we can call that the Logan Morrison Rule.

    • LOL, good one Donal.

      I can’t even imagine what the circus will be this year when Ozzie starts up his comments on Twitter when the season begins. Have to wonder if Loria put a clause in Ozzie contract forbidding him from using Twitter as it relates to the team.

  • not sure what the cap is (can’t get into that now) which should have a big impact. Assuming it is reasonable, the real hit is going to go to the very top guys.

    So I guess the question is, would a guy that might have gotten 3mill last year, not sign next year if he could only get 1.5mill?

    you can still go overslot, assuming you didn’t spend a lot on early round picks, but that doesn’t seem to get you anywhere.

    In some ways, this now functions like a fantasy league auction with a salary cap. You can spend a bunch on a couple of guys and that is it, or spread the $ around among a bigger group.

    one option? just stop drafting when you run out of budget. So instead of signing 50 guys to fill out the MiL system, sign 15 (or whatever you have $ for) and fill out the rest with MiL FAs that aren’t regulated.

    • one option? just stop drafting when you run out of budget. So instead of signing 50 guys to fill out the MiL system, sign 15 (or whatever you have $ for) and fill out the rest with MiL FAs that aren’t regulated.

      Any – That’s exactly what they will do, but the fact this cap includes IFA spending makes it complicated because those signings happen way after June.

  • This is exactly what Bud Selig always wanted. You can call this hard slotting gone wild. The Wilpons were always on board with slotting from the word go.

  • I dont share your concern here. These kids were being paid millions with many of them never even making it to the majors. In the NFL and NBA you get drafted and you play. Amateur bonuses were out of control.

    • No one held a gun to any team’s head. Besides, Juan Pierre this past season has cashed a check for more than any team spent on its IFAs

      It ain’t the amateur spending that is out of control (at least, not by itself)

  • OK, I’m reading over it now, a few things that I hadn’t heard mentioned before I find interesting

    Regarding free agency

    III a 2 A. Only Players who have been with their Clubs for the entire season will be subject to compensation. (that will really effect the trade deadline)

    c. Salary Arbitration Eligibility
    1. The percentage of players with two years of service who will be arbitration eligible will be increased from the top 17% to the top 22% in terms of service.
    2. All players tied at the 22% cutoff will be eligible for arbitration. (so now all that young talent is going to get more expensive faster)

    e. Rule 4 Draft
    1. The draft will continue to be conducted in June, but the signing deadline will be moved to a date between July 12 and July 18 depending on the date of the All-Star Game. (this is one of the few changes I agree with)

    2. Drafted players may only sign Minor League contracts. (I’m torn on this one. I do feel signing draftees to ML deals is painfully stupid, but I don’t think there should be a CBA rule prohibiting it)

    What they do with the money and picks they take from teams that go over slot:
    4. Proceeds generated by the tax will be distributed to payee Clubs under the Revenue Sharing Plan that do not exceed their Signing Bonus Pools. Draft picks that are forfeited by Clubs will be awarded to other Clubs through a lottery in which a Club’s odds of winning will be based on its prior season’s winning percentage and its prior season’s revenue. Only Clubs that do not exceed their Signing Bonus Pools are eligible for the lottery. (again rewarding teams for not spending on amateur talent. Also, no mention if these teams will get expanded bonus limits)

    5. Competitive Balance Lottery
    A. For the first time, Clubs with the lowest revenues and in the smallest markets will have an opportunity to obtain additional draft picks through a lottery.
    B. The ten Clubs with the lowest revenues, and the ten Clubs in the smallest markets, will be entered into a lottery for the six draft selections immediately following the completion of the first round of the draft. A Club’s odds of winning
    the lottery will be based on its prior season’s winning percentage.
    C. The eligible Clubs that did not receive one of the six selections after the first round, and all other payee Clubs under the Revenue Sharing Plan, will be entered into a second lottery for the six picks immediately following the
    completion of the second round of the draft. A Club’s odds of winning the lottery will be based on its prior season’s winning percentage.

    (interesting. But, what is the point of giving teams more picks if you are going to limit their ability to sign them?)

    VII.. BENEFIT PLAN
    f. Access to health coverage has been improved for international players and their families.
    g. Health care benefits have been improved while managed care initiatives have been introduced to help with costs. (good. We shouldn’t use those players as farm equipment)

    VIII.. HEALTH AND SAFETY
    b. The parties agreed on a program of mandatory evaluation by a trained professional for Players who are suspected of an alcohol use problem (including Players who are arrested for DWI or other crimes involving alcohol), and for players who are arrested for crimes involving the use of force or violence. (Ya, saw this coming. )

    c. The parties agreed that no new players will be permitted to use a low density maple bat during the term of the agreement. (ok didn’t know this was on the table)

    d. By 2013, all Major League players will wear a new batting helmet developed by Rawlings that protects against pitches thrown at 100 miles per hour. The new version of the helmet is significantly less “bulky” than prior versions of the more protective helmet. (I hope they work on shock absorption rather than using Snell test methods that focus on ridiculously unrealistic impact scenarios)

    X.. OTHER
    a. Participation in the All-Star Game will be required unless the Player is unable to play due to injury or is otherwise excused by the Office of the Commissioner. Players Trust will receive an increased contribution and players will receive additional benefits. (meh, it is a party. I don’t see how you can force guys that don’t want to go)

    b. All Players will be subject to a policy governing the use of Social Media.(the LoMo Rule)

    e. Non-discrimination protections based on sexual orientation were added to Article XV. (it is sad that in 2011 we actually need this)

    • Maybe I missed it and it’s already been implemented but since you look like you’ve read through the entire draft, I’ll ask you….

      Last year they were talking about instituting a special 7 day DL for players who suffered head injuries during play. Do you know if that’s part of this new agreement?

      Think the mindset was teams either tended to play one player short while the injured guy sat on the bench waiting for concussion like symptoms to occur, or even worse – some players came back after taking one day off when it wasn’t determined yet how series the injury was. I believe they thought teams would not balk about losing a player for 7 days, as opposed to immediately putting them on the 15 day DL if they incurred a head injury.

      • Here is what Rubin posted

        http://espn.go.com/blog/new-york/mets/post/_/id/36713/fine-print-of-new-labor-agreement

        There doesn’t seem to be any references to a 7 day DL but under the Health and Safety article, it mentions concussions

        VIII.. HEALTH AND SAFETY
        e. The concussion policy that was implemented prior to the 2011 season has been improved and will remain in effect for the duration of the Basic Agreement

        Pretty vague if you ask me

  • Commisioner Bud Seelig at his best.

  • What the players union has achieved is higher valuation of existing ML players by changes to the free agent conmpensation rules and devaluation of incoming draftees by establishing a cap on $$$ spent by teams, which was the ownwers goal of this horse trade. Reducing the number of picks is of little consequence since bonuses to picks after about the 10th round are negligible. Players will opt for college instead of signing with a ML organization because the money won’t be there. So college coaches instead of low minor league coaches will be a big part of player development for 5th – 10th round draftees. Over time teams may reduce the number of rookie league teams. Another plus for the owners. Going overslot to restock a farm system is no longer vialbe so GMs like ours have been devalued and guys that throw money at “established” players are being encouraged to do more of it. This is a five year agreement so it will be interesting to see how this unfolds and if it is a big part of the next contract. All in all this is not good news for the Mets plan to rebuild through the draft.

    • Oh, 72MetsFan, you are not over reacting.

  • Acc. to Ben Nicholson-Smith of MLBTR, teams face draft ceiling limits of 4.5MM-11.5MM in the Rule 4 Draft ( mainly depending on the assigned value of a team’s 1st rd., compensatory & 2nd rd. draft pick) which is not too bad. Although, not clear if a team’s compensatory and lottery picks count against a team’s draft ceiling limit. Maybe not.

  • I like most of the new CBA including the 2nd wildcard, although just a 1 game playoff between the 2 wildcards is not fair. Should have been best 2 out of 3 series, which this year would have meant just 1 or 2 extra days ( if that series went 3 games allowing for a day of travel, if started right after the regular season).

    • I honestly don’t get all that upset over the Wild Card. It is hardly diluting the playoffs when you realize that you can win a bad division with 85 wins. Adding an extra allows more 90+ win teams to have a shot while maintaining value in winning the division.

  • Acc. to Jeff Passan of Yahoo! Sports, the slots for the first 4 picks in the draft will be 7.2MM, 6.2MM, 5.2MM and 4.2MM.

NL East Standings

TeamWLPct.GB
Braves2418.571 -
Nationals2320.5351.5
Phillies2023.4654.5
Mets1624.4007.0
Marlins1132.25613.5

Last updated: 05/18/2013

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