Contracts: MLB Wants a System Similar to the NHL’s

MLB and the Players Association, as we know, are in the midst of negotiations for their next collective bargaining agreement. And this year, more than ever, it feels like the issue of the salary cap is taking center stage.

The league seems adamant about implementing one… while the players are adamant that there shouldn't be one. And that's what's causing the threat of a (long) labor dispute to loom over the sport.

That said, on this topic, MLB has decided to put forward a new proposal regarding the contracts that could be signed. And what we're seeing is that the system is quite similar to what we see in the NHL.

The league is proposing that a free agent could sign a contract with a maximum term of five years and a maximum value of $202 million.

As a reminder, Juan Soto signed a 15-year, $765 million deal. That contract would be (extremely) illegal under the new provisions proposed by MLB.

It should be noted, however, that just as in the NHL, a team wishing to retain a player could go a step further. It could add an extra year (for a total of up to six years) and offer the player a total of $265 million over those six years.

The league also adds that players who are still in the early years of their control period could sign an extension whose maximum number of years would be tied to their years of service. A player in his first year could sign for 12 years, while a player in his third year could sign for a maximum of nine years.

In practical terms, a player could not be under contract for more than 12 years in this scenario… which is consistent with the model of six years of control and six years allowed to extend a player who is already on the team.

The league, in a scenario where players agree to adopt the salary cap, is also open to increasing salaries early in a player's career and eliminating qualifying offers as well as deferred compensation. Additionally, players over the age of 30 could become free agents after just five years of service (instead of six).

Unsurprisingly, the Players Association quickly responded quite negatively to MLB's proposals. It finds the league's offers misleading because they depend on the implementation of a salary cap, which would eliminate the free market.

And according to the Association, one player's gains would represent losses for another player, all because of the salary cap.

What's clear is that we still seem quite far from a deal. The concept of the salary cap is once again the topic of much discussion, and today's offers are not going over well, given that they still hinge on the implementation of this infamous cap.

Bruce Meyer, who heads the Players' Association, is right: the two sides have positions that are very, very difficult to reconcile at the moment. Remember that he expects a lockout this winter.

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