June 4, 2012
Inside the 2012-16 MLB CBA: Minimum Salaries, the Luxury Tax
In Part One of this series on MLB’s new Collective Bargaining Agreement, the focus was on the changes to the draft system. Today, we look at changes to minimum salaries and the soft-cap via a luxury tax on total player payroll.
Each time a new labor agreement is reached in professional sports, there is invariably the question of, “Who came out on top?” You might be able to say the needle swung slightly one way or the other, but in the end the only real winner is “compromise.”
Such is the case with MLB’s latest CBA (read here). While one might say that there are certain aspects that were clear wins for the league, the players got some concessions as well. How big some of those concessions were, however, is debatable.
Increases In Minimum Salary
2012—at the rate per season of $480,000;
2013—at the rate per season of $490,000;