Report: Qualifying offer to be in the $18 million range

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According to ESPN’s Buster Olney, teams have been told that the qualifying offer to free agents this offseason will be in the $18 million range, likely $18.1 million. The value is derived by taking the average of the top 125 player salaries.

At $18.1 million, that would be $900,000 more than the previous QO, which was $17.2 million. This will impact soon-to-be free agents like Jake Arrieta, Eric Hosmer, Lorenzo Cain, Mike Moustakas, and Yu Darvish, among others. That also assumes that the aforementioned players aren’t traded, which would make them ineligible to receive qualifying offers. We’ve seen, increasingly, that teams aren’t willing to make a QO to an impending free agent and that trend is likely to continue this offseason.

The QO system was modified by the newest collective bargaining agreement. The compensatory pick for a team losing a player who declined a QO used to be a first-round pick. That was a penalty to both teams and players, which is why it was changed. Via MLB’s website pertaining to the QO:

A team that exceeded the luxury tax in the preceding season will lose its second- and fifth-highest selections after the first round in the following year’s Draft as well $1 million from its international bonus pool. If such a team signs multiple qualifying offer free agents, it will forfeit its third- and sixth-highest remaining picks as well.

A team that receives revenue sharing will lose its third-highest selection after the first round in the following year’s Draft. If it signs two such players, it will also forfeit its fourth-highest remaining pick.

A team that neither exceeded the luxury tax in the preceding season nor receives revenue sharing will lose its second-highest selection after the first round in the following year’s Draft as well as $500,000 from its international bonus pool. If it signs two such players, it will also forfeit its third-highest remaining pick.

Additionally, if a player who rejected a QO signs a guaranteed contract worth at least $50 million and came from a team that receives revenue sharing, that previous team will receive a compensatory pick immediately following the first round in the ensuing draft. If the contract is less than $50 million, that team will get a compensatory pick after Competitive Balance Round B. If the player’s team is over the luxury tax threshold, that team will receive a compensation pick following the fourth round. If that team neither exceeded the luxury tax nor receives revenue sharing, the compensation pick will come after Competitive Balance Round B.

Yeah, it’s a bit convoluted, but you do the best you can with a flawed system.

AP Source: Minor leaguers reach five-year labor deal with MLB

Syndication: The Columbus Dispatch
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NEW YORK – Minor league players reached a historic initial collective bargaining agreement with Major League Baseball on Wednesday that will more than double player salaries, a person familiar with the negotiations told The Associated Press.

The person spoke on condition of anonymity because details were not announced.

As part of the five-year deal, MLB agreed during the contract not to reduce minor league affiliates from the current 120.

The sides reached the deal two days before the start of the minor league season and hours after a federal judge gave final approval to a $185 million settlement reached with MLB last May of a lawsuit filed in 2014 alleging violations of federal minimum wage laws.

Union staff recommended approval and about 5,500 minor leaguers were expected to vote on Thursday. MLB teams must also vote to approve and are expected to do so over the next week.

Minimum salaries will rise from $4,800 to $19,800 at rookie ball, $11,000 to $26,200 at Low Class A, $11,000 to $27,300 at High Class A, $13,800 to $27,300 at Double A and $17,500 to $45,800 at Triple-A. Players will be paid in the offseason for the first time.

Most players will be guaranteed housing, and players at Double-A and Triple-A will be given a single room. Players below Double-A will have the option of exchanging club housing for a stipend. The domestic violence and drug policies will be covered by the union agreement. Players who sign for the first time at 19 or older can become minor league free agents after six seasons instead of seven.

Major leaguers have been covered by a labor contract since 1968 and the average salary has soared from $17,000 in 1967 to an average of $4.22 million last season. Full-season minor leaguers earned as little as $10,400 last year.

The Major League Baseball Players Association took over as the bargaining representative of the roughly 5,500 players with minor league contracts last September after a lightning 17-day organization drive.

Minor leaguers players will receive four weeks of retroactive spring training pay for this year. They will get $625 weekly for spring training and offseason training camp and $250 weekly for offseason workouts at home.

Beginning in 2024, teams can have a maximum of 165 players under contract during the season and 175 during the offseason, down from the current 190 and 180.

The union will take over group licensing rights for players.

Negotiating for players was led by Tony Clark, Bruce Meyer, Harry Marino, Ian Penny and Matt Nussbaum. MLB Deputy Commissioner Dan Halem headed management’s bargainers.