For now, there will not be an MLB international draft.
The Major League Baseball Players Association was formed on Monday, just in time for the deadline to reach an agreement between the parties. formally rejected MLB’s last proposal for an international draftThis decision will have ripple effects for not only young international players but also for some of MLB’s most impending free agents. The deal stipulated that the qualifying offer would still be available if there was no draft agreement.
What does that translate into for free agents? What does that mean for free agents? Which points did they agree on? What were the sticking issues?
Alden Gonzalez, ESPN MLB expert, answers the key questions.
What does the return of the qualifying offer for players mean?
This will be an issue for the upper-middle-class free agents. Their markets have been significantly impacted by the qualifying offer system in recent years. Recall: A one-year contract can be offered to free agents who have spent an entire season with a single team, but have not previously received a qualifying deal. The offer is worth the median salary of MLB’s top 125 earners at the beginning of the offseason. After that period, the agent has a 10-day window to accept or reject the offer.
Most players reject the offer. Only six out of 45 players accepted the qualifying offer in the past five years. Many see their options being affected by teams who avoid the penalties of the MLB draft. Revenue-sharing teams give up their third pick. Those who exceed the luxury tax forfeit their second and fifth picks, and they also lose $1,000,000 of draft space.
The best free agentsFreddie Freeman, Gerrit Cole, Bryce HarperThese people, such as painters and musicians, are rarely impacted. However, those who live in a lower tier are often affected. This list has expanded to include in recent years. Mike MoustakasDallas Keuchel, Kendrys Morales Craig KimbrelAmongst many others.
Which QO will have the most impact on this winter’s weather?
If they don’t get traded in the next seven days, these players have at least a chance to be offered a qualifying offer for this offseason. Aaron Judge, Xander Bogaerts, Joe Musgrove, Trea Turner, Dansby Swanson, J.D. Martinez, Clayton Kershaw, Jacob deGrom, Chris Bassitt, Taijuan Walker, Carlos Rodon, Edwin Diaz, Brandon Nimmo, Josh Bell, Jameson Taillon Trey Mancini.
Judge, Bogaerts (Musgrove), Turner, and Turner will all get big money. Given his position, Swanson might also get big money. If he’s healthy, deGrom. Kershaw is likely to sign another high-dollar, short-term deal with the Los Angeles Dodgers Oder the Texas Rangers. All other people might feel the benefits of the qualifying offer.
The qualifying-offer system may further discourage spending. This is because draft-pick penalties for teams that exceed luxury tax are higher. Based on payroll and revenues, the draft-pick return for players who reject qualifying offers varies.
What were the most important unresolved problems in the international draft proposal? What did they reach an agreement on?
They agreed that the first round would either be held in Miami or in Dominican Republic. That would have been very special. While the MLBPA required that draft players be paid at least $10,000, and MLB set it at $5,000, they agreed to give money towards education. MLB came to an agreement on some aspects of its original proposal, which the MLBPA considered discriminatory. This included eliminating suspensions from positive drug tests and making predraft physicals voluntary.
Aside from that, not much.
As it has always been, the big divide was money.
According to the MLBPA, the gap between what 30 teams spend on domestic draft players (the union projects over $300 million) and what they spend internationally on international players (less than $170million during last year’s signing period) is too large. They set it at $260million for the top 600 international players with the slots as minimums.
MLB believes that the gap is closing should International players are typically signed at 16 years old, as opposed to the majority of 18- to 21 year-olds who come out of domestic drafts. This creates more uncertainty. The league’s final offer guaranteed $191million for 600 spots in an inaugural international draft 2024. It was described as a $30-plus billion increase in signing fees.
The MLBPA did not believe it was sufficient.
MLBPA also demanded more from MLB. They wanted levers to increase bonus pools if international sign-ups fall below a certain threshold. A foundation would need an annual commitment of $10 million. Slot values were the great divide.
What next?
A team executive with extensive experience in international markets said, “Same flawed system ’til next CBA.”
Despite not being able to reach an agreement, both sides agree that the international market must change.
Sources familiar with the matter say that it is rooted in teams striking early deals for players as young as 13. The widespread practice has created a system that sources describe as composed of rampant performance-enhancing drug use, trainers who absorb up to half of players’ bonuses and teams that exploit young players by skimming bonuses — or eliminating them entirely — weeks before they’re scheduled to officially sign contracts.
MLB insists that the only way to eradicate corruption is to create a draft which would remove most of the early deals and regulate the international markets. Many people with inside knowledge of Venezuela and Dominican Republic’s internal workings, including coaches and agents, agree that the draft will make a difference. But many other people don’t think it will make as big an impact as MLB.
Echoing many players’ sentiments, the MLBPA believes that MLB has not done enough to punish teams that do not follow the established rules. Tony Clark, executive director of the MLBPA, stated this in March, just after a new collective agreement was reached. He said that the difficulties “are largely associated to those that are cutting checks.” To put it another way, corruption can only occur when there are individuals involved in the same corruption we see.
Rob Manfred, the MLB commissioner, addressed the issue after June’s owners meetings. He stated that the league had spent millions of dollars investigating allegations and misconduct.
Manfred said that “our efforts to rein in the corruption in Dominican have been ongoing, and legion.” “It’s easy for people to say it’s them who cut the check and that they’re involved in corruption. “But, you know, someone’s taking the cheque, right?”
A new international draft will be held after the 2026 season, when the current CBA expires. There will be five international signing periods during the interim, including this year. Both sides need to work together to minimize corruption.
How can we resolve this?
Transparency, trust and open communication are all things we have not seen in recent times from both sides. Both sides spoke up in this regard Monday. Officials from the league said that they are open to hearing ideas from the union. Clark raised the point last week in L.A. when Clark said that the union officials believed the two sides could still work together to make changes to the international system.
Clark stated prior to the All-Star Game that “There’s no doubt” there can be more dialogue. It’s interesting that even if an international draft is not reached, Clark made a proposal for bargaining that didn’t include an international draft that focused on the issue of corruption. This is why you have an opportunity to have this conversation. It has not attracted as much interest to have that conversation. It was just draft, draft. There hasn’t been much focus on other things that could be done. We are willing to have a dialogue about these things if we don’t reach common ground.
Time will tell.