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Archive for November 23rd, 2011

Even in peace, MLB finds a way to get bruised. Instead of focusing on the unprecedented 21 years of labor peace that will result from yesterday’s new collective bargaining agreement (CBA), the focus of many, if not most, has been on elements of the deal they don’t like. Interestingly, the strongest objections have been for items like draft slotting and expanded playoffs, which just so happen to be heralded in other sports. In some ways, that’s unfair, but baseball has always been held to a higher standard (see steroids) because it is the National Pastime.

We are headed for massive problems in the next CBA. Competitive balance is going to get progressively worse.” – Anonymous GM, quoted by Ken Rosenthal, November 23, 2011

The most repeated criticism of the new CBA is it has the potential to dampen competitive balance by restricting the amount of money that small market teams can spend in the draft and international free agent market. Because teams like the Royals, Pirates, Royals, and Padres have become the most prolific spenders in the draft, the theory goes, curtailing the amount of money spent will limit their ability to be competitive. However, there is a flaw to this logic. The reason those teams have spent more is twofold: they have amassed more picks and bonus payouts at the top of the draft have been increasing exponentially.

Top-10 Spenders in the Rule IV Draft, 2007-2011

Team Total Bonuses
Pirates $52,057,400
Nationals $51,084,600
Royals $45,204,900
Red Sox $44,097,250
Orioles $41,219,700
Rays $40,582,200
Blue Jays $38,429,600
Mariners $36,055,900
Padres $35,768,100
Diamondbacks $35,261,000

Source: baseballamerica.com

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