Nationals Farm Authority

The worst kept secret of the last week became official today when MLB Commissioner Bud Selig and Major League Baseball Players Association Executive Director Donald Fehr announced this evening that “MLB and the MLBPA have agreed to a five-year labor contract that will allow play to continue uninterrupted through the 2011 season.”

The linked press release highlights all of the aspects of the agreement, but I’m going to focus on the pieces that have impact on the minor leagues and the First Year Player Draft.

Amateur Draft

1. Clubs that fail to sign first or second round draft pick will receive the same pick in the subsequent draft as compensation. Club that fails to sign a third round pick will receive a sandwich pick between rounds three and four in the subsequent draft as compensation.
2. Period of time before a Player must be protected from the Rule 5 Draft is changed from three or four years from first minor league season to four or five years from year of signing.
3. Signing deadline of August 15 for draft picks other than college seniors.

Draft Choice Compensation

1. Type C free agents eliminated in 2006
2. Also in 2006, compensation for type B players becomes indirect (sandwich pick) as opposed to direct compensation from signing Club.
3. Effective 2007, Type A players limited to top 20 percent of each position (down from 30 percent) and Type B players become 21 percent - 40 percent at each position (rather than 31 percent - 50 percent).
4. Salary arbitration offer and acceptance dates move to December 1 and December 7.

Quick analysis:

Amateur Draft (1): While I do not believe this will impact the Nationals failure to sign 2006 2nd round draft pick Sean Black (though I’m double-checking), it bodes well for the future. MLB and MLBPA have given teams a safety net in the first three rounds of the draft. Teams can now aim for the high ceiling tough signs with the knowledge that if they are rebuffed, they receive the same caliber selection in the following years draft. This basically takes any thoughts of a holdout and wipes them away. There is no leverage for the drafted player as the drafting team can lose nothing more than one year of that player’s development.

Amateur Draft (2): Extension of the Rule 5 protection status from ‘3 or 4′ to ‘4 or 5′ years. This is actually pretty significant. Teams now have an additional year of development time. For many teams, this one extra year will be very beneficial to player development. A team should have a realistic picture of a player who is 19 or older in four years (and the extra year for an 18 or uner player). For a team like the Nationals, this allows them to not have to waste a 40-man roster spot on a guy who still needs development.

Amateur Draft (3): My read of this is that it does away with the concept of a Draft-and-follow player. All contracts with non-college seniors must be agreed to by August 15. Teams can no longer select community college/junior college players with plans on signing them prior to the following year’s draft. The interpretation of this bears watching.

Draft Choice Compensation: Long story short for Nationals fans. Soriano will return exactly what he would have under the old agreement first round pick and sandwich pick between rounds 1 and 2 (with the caveat that the first round selections 1-15 are protected and substituted with that team’s 2nd round selection).