Progress is being made in talks between MLB and the MLBPA.

The two sides met for the second day in a row in Manhattan. No deal was agreed to but that was to be expected. Instead, there were more talks of where the owners and players can meet on a new collective bargaining agreement.

On Monday, the MLBPA made modifications to their initial proposals. Those were detailed by Matt Musico here. Essentially, the players association dropped its initial proposal that players would reach free agency in less than six years and their initial proposal for revenue sharing is being altered. The owners were unwilling to budge on either issue.

Tuesday’s talks had a slight agreement made between the two sides.

Jeff Passan reports that MLB agreed to accept the parameters of a pre-arbitration bonus pool for the top 30 players in WAR. But the two sides are still far apart with the Players Association seeking $105 million in pool money while the league offered $10 million. Passan reports that players are “laughing at” MLB’s offer.

In addition, MLB offered a minimum salary raise to $615,000 while the MLBA wants $775,000. MLB withdrew an offer to change the arbitration structure.

The main takeaway is a pre-arbitration bonus pool gets the best young players paid more. It’s something the MLBPA has stressed throughout the lockout that players need to be paid more for their early-year contributions.

Chelsea Janes of the Washington Post provided additional details on Tuesday’s talks and Passan’s report. MLBs proposal to change arbitration was to end Super Two – a designation that allows a select group of players to become eligible for arbitration before reaching three years of service time – and it seems like the concession made is on the idea of the union’s idea of a bonus pool. The bonus pool will be funded by central revenue and reward those who win awards and hit WAR marks. There was no detail on which WAR formula they will use to determine the bonuses.

MLB Network insider Jon Heyman says the sides are “making real progress the last two days.” He suggests that the luxury tax may be the biggest hurdle to conquer.

Heyman additionally tweeted that both sides understand that younger players deserve to be paid more.

MLB and the union are expected to meet again soon, says Bob NightengaleThe sides could meet later this week to discuss non-core economic issues.