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MLB canceled more games. But the sides are still talking after international draft rift

In the midst of still-ongoing conversations about how to overcome a late-stage snag in bargaining came an announcement from Major League Baseball that another two regular season series would be “removed from the schedule,” victims of the intractable lockout.

Or you could put that same situation another way: In spite of a statement from commissioner Rob Manfred saying things like “last-ditch” and “logistical realities” that sought to impose consequences for yet another blown deadline, MLB and the union stayed at the (metaphorical, these things can be done from their respective headquarters) table late into the night Wednesday, in search of a way forward.

Either lens is at once pessimistic — posturing at this point compromises games even if the deadlines have proven malleable — and optimistic — the people involved are willing to keep talking even when they must be tired (of each other).

A day that started with the extension of a deadline to get a new collective bargaining agreement narrowed to a fight over the international draft, which MLB had tied to the elimination of the draft penalties for teams that sign certain free agents. But by late in the evening, an MLB official said that he hoped a resolution could be reached on that issue tonight.

International draft creates a rift

Among the oft-referenced concessions MLB made to the union’s stated causes during these CBA negotiations was the removal of draft penalties for signing free agents with a qualifying offer attached to them. Manfred touted his willingness to do so after the owners meetings in Orlando, saying they had agreed to the elimination of direct draft pick compensation (along with the introduction of a universal designated hitter).

“These changes will improve the free agent market by creating additional jobs that are often filled by veteran players and by reducing, actually eliminating, the drag from compensation,” he said.

But when it became clear that policy was tied to the implementation of an international draft — something MLB has long sought, dating back several CBA negotiations — the union balked and cried foul. (Puns!)

A league official said that an international draft has been in every proposal MLB made since last July. But every time the union has rejected it.

Frustrated by what they considered to be a roadblock and the union’s unwillingness to entertain proposed solutions, the league presented three options to the union specific to the two intertwined issues:

1. The addition of an international draft and the elimination of direct draft pick compensation.

2. Status quo from the outgoing CBA, which included draft pick penalties but no international draft.

3. Or the elimination of direct draft pick compensation now to get a deal done, and players would have until Nov. 15, 2022, to agree to an international draft starting 2024. If, at that point, the players still opposed the international draft, the CBA would be reopened after 2024.

In other words: accept the trade, drop both issues entirely or the players’ preferred change with the stipulation that the CBA would be shortened if they didn’t come around on the idea.

MLB, seeking a solution to what seemed to be holding up a deal, presented these options to players as a prerequisite to continue bargaining, asking them to pick the path forward. But the players bristled at what they felt was a reversal on a promise to make a full proposal.

And so instead, they offered a new option: Elimination of direct draft pick compensation, players have until Nov. 15, 2022, to agree to an international draft. If they cannot agree, the international system stays at status quo and the qualifying offer system would return after the 2022-23 offseason.

But that came after a 6 p.m. deadline set explicitly by the league and so, for the second time in nine days, the commissioner’s office pulled games off the regular season schedule. Opening day, the statement said, will be postponed until at least April 14.

“In a last-ditch effort to preserve a 162-game season, this week we have made good-faith proposals that address the specific concerns voiced by the MLBPA and would have allowed the players to return to the field immediately,” the statement said. “The Clubs went to extraordinary lengths to meet the substantial demands of the MLBPA. On the key economic issues that have posed stumbling blocks, the Clubs proposed ways to bridge gaps to preserve a full schedule. Regrettably, after our second late-night bargaining session in a week, we remain without a deal.”

The MLBPA shot back, in a statement, that the league’s decision to cancel games “is completely unnecessary.”

“After making a set of comprehensive proposals to the league earlier this afternoon, and being told substantive responses were forthcoming, players have yet to hear back,” the statement said. “Players want to play, and we cannot wait to get back on the field for the best fans in the world. Our top priority remains the finalization of a fair contract for all players, and we will continue negotiations toward that end.”

Manfred canceled the first two series of the season a week ago, postponing the scheduled March 31 opening day and altering baseball’s regular season due to a work stoppage for the first time since 1995. The owners initiated the lockout on Dec. 2 following the previous collective bargaining agreement expired, and, after what amounted to a monthslong staring contest, negotiations on a new labor deal have only shown progress recently.

The initial spate of canceled games came on the heels of nine days of near constant bargaining in Florida. A marathon day ahead of MLB’s initial deadline to save opening day produced an extension of that deadline, but that hint of progress proved fruitless the following day when the league made its "best" offer and then quickly moved to announce the cancellation of games once the union rejected it.

League and union officials met in New York this week and seemed to be moving toward bridging the significant monetary gaps that remained. That culminated in another interminable deadline day on Tuesday that spanned more than 16 hours of talks, resulted in another carryover to Wednesday and produced the same thud of disappointment.

MLB lockout talks sailed through another league-imposed deadline on Tuesday, and the owners responded by canceling more regular season games.  (AP Photo/Ross D. Franklin)
MLB lockout talks sailed through another league-imposed deadline on Tuesday, and the owners responded by canceling more regular season games. (AP Photo/Ross D. Franklin)

How we got here

Prior to the schism over the international draft, the two sides had been furthest apart — and seemingly most entrenched — on the competitive balance tax and a newly created bonus system for early-career players. But the offers were moving closer.

The CBT — a luxury tax that MLB has used as a soft cap to tamp down top-end payrolls — was one of the last items to be discussed. The league’s most recent offer would reportedly start the tax threshold at $230 million and raise it to $242 million over the life of the CBA.

The union’s Wednesday counteroffer started at $232 million and escalated to $250 million. Heading into this week, the players had sought a $238 million threshold in 2022 that rose to $263 million. After the talks in Florida collapsed, reports emerged that four owners objected to raising the league’s offer even to $220 million.

The sides will also need to bridge divides on the amount of money in the bonus pool for productive pre-arbitration players and the minimum salary. A priority for the union in these negotiations has been getting younger players paid more, to reflect the value they increasingly provide. That can be done by raising the minimum salary and via the creation of a bonus pool for rewarding players who are not yet arbitration eligible. MLB bought into the concept, but its most recent proposal is for $40 million, while the union is at $65 million with the pool increasing by $5 million each season.

This is now the third deadline MLB set and then missed to preserve a full season. Manfred has said unequivocally that missed games will not be rescheduled and players will not be paid, or credited with service time for them. The league cannot decide that unilaterally, though, and the union indicated an unwillingness to agree to any eventual terms that did not include full pay or service.