Originally posted on The Victory Formation  |  Last updated 11/18/11

It appears that Major League Baseball has a new collective bargaining agreement, ensuring continued labor peace for the next five years. Most people were probably unaware of these negotiations, as they were probably unaware that the current agreement was set to end in December. This isn’t jaw-dropping news, given that an agreement was always expected. At no point was there real danger that the two sides would reach an impasse. Those close to the negotiations never expected a strike or a lockout, but it’s still nice to know both sides came to a quick resolution of any obstacles they may have had.

According to Ken Rosenthal, the deal was reached Thursday. However, we will be left waiting until Monday to hear the final details. The deal is five years in length. That is known. It will give MLB 21 years of labor peace by the time it concludes. That’s good news, especially in the wake of the NBA crumbling. The NBA’s issues come down to money, and the fact argued by owners that they are losing too much money. That’s on them. The NBA is in trouble. They may not have a season, and not many people seem to care. MLB is chugging along strongly, with huge revenue growth.

The key issues in this CBA include free-agent compensation and amateur draft bonuses. The expected changes in free-agent compensation could put a little more heat in the hot stove. Type A compensation is expected to be eliminated entirely, but Type B will remain. I wish they would eliminate all free-agent compensation entirely, but this is progress.

As far as the amateur draft is concerned, Bud Selig has never hid the fact that he wants a hard slotting system to curb amateur bonuses. These bonuses have increased exponentially over the last decade as teams have figured out the best way to add talent to your farm system is to throw money around in the draft. It is much more efficient to spend 15 million dollars on a draft than to throw 150 million at aging free agents. The new CBA will probably introduce some rules pertaining to these bonuses. I highly doubt it will be the hard slotting system for each pick that Selig desires, but the rules could focus on teams operating their drafts under a total budget cap with some type of tax for teams that exceed it. Additionally, the signing deadline for draft picks is expected to be moved from August 15 to July 15.

Much of this is based on speculation and hearsay. No one will know for sure until the official announcement on Monday. Regardless of the changes, fans can hang their hats on the fact that games will be played and that MLB is strong and healthy.

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