Ladies and Gentlemen, the Collective Bargaining Agreement has been extended through 2011. Specific points:
The deal continues, with minor modifications, existing luxury tax and revenue-sharing rules, provisions that funneled money from large-market teams to their competitors. The payroll threshold for the luxury tax increases from $136.5 million this year to $148 million next year, then goes up about 5 percent annually, a baseball official familiar with the deal said, speaking on condition of anonymity because the agreement hasn’t been announced. How this affects Boston: We can increase our payroll without worrying about revenue sharing.
The minimum salary increases, from $327,000 this year to $380,000 next season, and amateur draft pick compensation for some free agents who sign with new teams, will be eliminated. How This affects Boston: The minimum salary does get a bump which will hurt in payroll, but now we can breathe easier by signing free agents away from other teams, although we do lose an advantage Boston took advantage of in recent years. This also means more July 31 trades for us fans! (Note how it says some, though.)
Also, teams that reach targets for revenue-sharing will be rewarded under the new agreement, and those that fail will be penalized. How this works for Boston: Well, if we reach targets, we’re rewarded! Hopefully in the form of a World Series ring.
Read other important changes here.
