The opt-outs add to the intrigue. As well as the fact that the Cubs cannot support him with the same defense as the Cardinals. That is something to see.
Q: How does the luxury tax affect the CBA talks?
A: It’s huge. Quick: The luxury tax is the threshold MLB sets to limit spending at the high end, and there are penalties if it is exceeded. These penalties increase every year as a team goes above and beyond, from dollar-for-dollar taxes to losing draft picks. You will see teams trying to get under the luxury tax in years’ time if, for example, they are penalized with a draft pick. It’s a factor when teams sign players because while they go maybe 5 years, $ 100 million for a player, if that player puts them above the luxury tax, that team has to factor in the fact that $ 25 a year could be $ 35 . $ 40 depending on where they are in terms of luxury taxes and how far they go.
It’s a massive part of the negotiation because the luxury tax hike gives teams a higher cap on their payroll, and therefore more money for free agents.
On the union side, it is argued that the luxury tax created a de facto wage cap, which the MLBPA does not want. And I get the impression that the owners don’t want that either when they’re being pushed. Why? Well, in order to set a salary cap, the sides would have to negotiate that cap as a guaranteed percentage of sales. That requires the definition of revenue. You can’t split a cake, 48/52 or 50/50 or whatever, without knowing the size of the cake. So that would mean that owners would have to reveal some inside information that they didn’t necessarily want to share before.
