Quote:
Originally Posted by RchW
The current FA compensation rule will also go away. It clearly suppresses the FA market and actually punishes mid-level teams.
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I've often seen it stated the luxury tax is also a significant factor. And certainly the luxury tax payroll threshold has not kept up with the increase in average club revenue.
For 2012 the threshold was $178 million while the average club revenue was $226.9 million. Based on that ratio, the luxury tax threshold for 2014 would have been $205.6 million as a result of the growth in average club revenue. In reality the threshold was $189 million. (And that $189 million threshold stays in place through the 2016 season.)
One thing to expect in the next CBA is a large jump in the major league minimum salary. The MLBPA seems to try and maintain a relationship between the minimum and average salaries, and the average player salary surged in 2014 but the minimum salary increase is tied to cost-of-living adjustments. A quick back-of-the-envelope calculation suggests a new MLB minimum salary of at least $600,000 for the next CBA.