In the final hours before the prior collective bargaining agreement’s expiration, Major League Baseball and its players’ union reached a tentative labor agreement. The agreement just narrowly avoided a potential work stoppage and marks 26 years of labor cooperation in the league. The new agreement should extend that peace another give years, until 2021.
The agreement hinged upon a raised threshold of the specified payroll limit. This “luxury tax” was a penalty on teams that went over the threshold. According to players the cap was not rising at the same level as league revenue. This increase is accompanied by many other changes, including an agreement that the winner of the All-Star Game will not determine home field advantage in the World Series.
The agreement is not yet finalized as it is in the process of being drafted into a memorandum of understanding. More specific terms are expected to be released once the agreement is complete.