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Report: New CBA to include hard cap for international signings

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Via Melissa Segura, the new Collective Bargaining Agreement will include both a hard cap and floor for international free agent signings. It’s unclear when this would be put into place. I have to think veterans from Japan would be excluded since MLB has traditionally treated those players like big league free agents, not amateurs.

The hard cap is very bad news for the Yankees, who are annually among the top spenders in Latin America and really build the backbone of their farm system through international free agency. I also have no idea how MLB intends to promote the game internationally by imposing what amounts to a salary cap for players outside of the United States. Just doesn’t make sense to me, but I guess that’s why I’m not the one calling the shots.

Report: Type-B Free Agent Compensation Likely To Be Eliminated

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Update (4:30pm on 11/16/11): Sherman corrected himself today, and there will in fact be Type-B free agent compensation this offseason. It’s almost certainly going to be eliminated going forward, but the rules will not change this winter. The Yankees will still received a supplemental first round pick for Freddy Garcia if they offer him arbitration and he signs elsewhere.



Original (4:30pm on 11/15/11): Via Joel Sherman, baseball’s new Collective Bargaining Agreement is likely to eliminate Type-B free agent compensation this offseason according to a pair of executives familiar with the negotiations. Type-A compensation will be unchanged for top tier free agents (Jose Reyes, Prince Fielder, etc.), though some tinkering may be done to help the lower ranked players (Octavio Dotel, Kelly Johnson, etc.).

Freddy Garcia is a Type-B free agent, so the Yankees will lose out on a draft pick if the system is indeed changed and he signs elsewhere. On the bright side, they wouldn’t have to offer him arbitration to secure the potential pick, so there’s no worry about him possibly accepting and receiving a salary they club would be uncomfortable with next season. The new CBA has not yet been announced, but the clubs have been kept abreast of potential free agent compensation changes so they move forward with their offseason plans. The current deal expires on December 11th, but the new one should be wrapped up before the end of November.

Under the current system, clubs receive the signing team’s first round pick plus a supplemental first rounder in exchange for losing a Type-A. Type-B’s return just the supplemental first rounder. The up-to-date 2012 draft order can be found here.

Next CBA likely to add two wild card teams and one-game playoff

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Via Joel Sherman, the owners and MLBPA have essentially agreed to add a second wildcard team to each league, and having a one-game playoff  determine which wildcard club advances. It would increase the importance of winning the division, but also give the owners the ability to make more money. Sherman says the two sides are still finalizing how they will create two 15-team leagues to help create a more balanced schedule, and they are also working on some draft stuff. Regardless, the addition of another wildcard team is pretty huge. The system could be in place as soon as next year.