Negotiations between MLB and the players union continue in New York, hoping to get a deal done soon.
There is some hope that day in which the labor conflict ends could be Tuesday, although chances of that happening are still slim.
According to MLB insider Jon Heyman, who has been one of the most optimistic analyst out there during the lockout, there is some movement.
However, both sides need to find common ground.
“MLB is said to have suggested an increase in luxury tax threshold to $228M in 2022 with rise to about $240M by year 5. Players union was at $238M in ‘22 and up to $263M in year 5. Proposals are going back and forth. Good signs,” Heyman tweeted on Tuesday afternoon.
MLB is said to have suggested an increase in luxury tax threshold to $228M in 2022 with rise to about $240M by year 5. Players union was at $238M in ‘22 and up to $263M in year 5. Proposals are going back and forth. Good signs.
— Jon Heyman (@JonHeyman) March 8, 2022
Heyman is referring to the competitive balance tax (CBT), also known as the luxury tax.
The Luxury Tax Remains A Big Hurdle
MLB has advanced from $210 million (which was the same amount of the 2021 season) to $220 million in the last meeting in Jupiter, FL., last week.
Now, they are apparently willing to go to $228 million, hoping that the Players Association also goes down $8 million for the two sides to meet in the middle.
The thing is that the Players Association has already given up a lot in negotiations: they had to ditch the idea of earlier free agency, they agreed to expanded playoffs, and they have been lowering their demands on a pre-arbitration bonus pool from $115 million to $80 million.
The league is, perhaps, waiting for the union to come down a little and we may have a deal.
It’s hard for players to accept a CBT threshold under $230 million and still agree to expanded playoffs, so only time will tell if they agree.
There have been some advances, though, so that’s positive.