With MLB and the union coming to an agreement on labor terms, new and favorable qualifying-offer terms highlight deal for the San Francisco Giants
There will be a baseball season in 2017, so rejoice San Francisco Giants fans! The union has reached an agreement on new labor terms that will last the next five seasons
Although the changes weren’t huge, impact will still be felt for multiple teams. The San Francisco Giants for one will benefit many ways from this, but first the details.
Although baseball doesn’t have a salary cap, taxations imposed on spenders who break the threshold may feel differently. MLB’s new luxury-cap will increase from $189 million currently, to $195 million when the deal kicks in. The luxury-cap will then reach $210 million at the end of the deal.
What will happen to teams that go over that limit? Luckily, the San Francisco Giants are currently under the luxury-cap and aren’t in sticky situations like some other teams who have been multiple offenders.
Third year offenders will now pay 50 percent on the first $20 million spent over the limit. Here’s where a seemingly invisible salary cap comes into play, because third time offenders who spend $40 million or more over the threshold will be taxed 95% of each dollar.
According to spotrac, the San Francisco Giants are currently set up for a payroll of $147 million in 2017. That figure is well bellow the threshold, and gives the Giants some wiggle room to pursue a top end closer without fear of penalties.
Even better news for the San Francisco Giants potential future contract dealings came with the changes to the qualifying offer system. Players may now only be offered a qualifying offer once in their career. Additionally, teams will no longer lose their first round draft pick by signing a player attached to a QO.
If a team is over the tax threshold, they will lose their second and fifth round picks, while also losing one million in international money. Teams under the tax threshold will only lose a third rounder now. This will help boost restricted free agents value, and options in future free agent periods.
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However, teams under the luxury-tax that offer QOs to players will receive a draft pick directly after the second round, if that player signs for $50 million or more with another team. Teams who are over the luxury-tax threshold and offer a QO to a player who is signed for $50 million or more will receive a pick directly after the fourth round.
Now the San Francisco Giants don’t have to worry about losing their valued first round pick in future deals.
Talks were reported to be tough between both sides, as an international draft was suggested but never agreed upon. International players may now only become total free agents after turning 25. There has been a new signing limit assigned to all teams for international amateurs set at $4.75 million per season.
This increases spending for teams, but also limits the money potential international stars can make until turning 25. For example, Shohei Otani is rumored to be worth $200-300 million by some analysts should he hit free agency. Now with the new rules in place, expect the young star to wait until 2019 to play for MLB.
The San Francisco Giants were never seriously linked to the international star, but now any rumors will surely have to wait for a few years. Maybe that money can be spent to extend an ace they already have, like Madison Bumgarner.
Lucius Fox was the highest rated shortstop in the international pool when the Giants ended up signing him. Yes, they exceeded the cap, and paid penalties for his services, but the annual cap being risen will only help the Giants. They’ve shown they’re not afraid to pay fines to get the player they want. Of course, Fox was included in the trade for Matt Moore.
Another addition that will benefit the Giants is the season starting during the middle of the week in 2018. This will create more natural off days without shortening the 162 game season. The San Francisco Giants were troubled many times by short turn around for games ending at night on the west coast, and then flying sometimes as far as the east coast for an early afternoon game.
Buster Posey will probably benefit most from the extra days off during the season, and allow him to focus more on catching and less on first base.
The CBA also got rid of the All-Star game’s current format, where the winning league is granted home field advantage for the World Series. Instead, home field will be determined by the best record between champions of both leagues.
San Francisco Giants have had successful first halves during the regular season in memory. Yes, we know home field doesn’t determine much in the playoffs, but the incentive to control your home field may urge the Giants to be intent on carrying that momentum through the second half.
It will be over a quarter century since the MLB last failed to negotiate a deal. MLB will get to boast it’s great streak for at least another five years.
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