ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, November 28, 1996 TAG: 9611290103
SECTION: SPORTS PAGE: B2 EDITION: HOLIDAY
TYPE: ANALYSIS
SOURCE: COX NEWS SERVICE
The new collective bargaining agreement between baseball owners and players could have a dramatic effect on the game. Atlanta Braves beat writer I.J. Rosenberg of the Atlanta Journal-Constitution answers questions about the agreement.
Question. What does this mean for baseball fans?
Answer. It's not going to lower ticket prices, but revenue-sharing should make the game more competitive. The most noticeable difference will be the beginning of interleague play next season.
Q. How will revenue-sharing help competition?
A. Many small-market teams, such as Montreal and Pittsburgh, have been forced to unload their best players over the past few years because they can't afford to pay them. The revenue-sharing plan will give money to small-market clubs, which should help them keep some of those players.
Q. How will the plan work?
A. The 13 teams that generate the most revenue will contribute money to the plan; the other 13 teams will receive money. Also, all players will contribute a tax equivalent to 2.5 percent of their salary. The players' share won't actually come from their salaries; it will come from licensing income, special dues or another method determined by the union.
Q. How much money will change hands?
A. The plan will start this year with about $70 million going from the larger clubs to the smaller ones. The most any one team will pay is about $6 million; that's also the most any one team will receive.
Q. How long does the new agreement run?
A. Through Oct. 31, 2000. The players have an option to extend it through Oct. 31, 2001.
Q. What is the luxury tax? Where does it come from, and where does it go?
A. The owners will tax the teams with the highest payrolls and add the money to the revenue-sharing pool. Next season, teams will pay a 35 percent tax on the amount of their payrolls over $51 million. In 1998, the threshold increases to $55 million. In 1999, they will pay a 34 percent tax on the amount over $58.9 million. There will be no tax in 2000.
Q. How much money is involved?
A. Payrolls for next season are not set, but if the tax had been in effect this season, it would have affected three teams with payrolls over $51 million - the Yankees, Orioles and Braves. The Braves, whose payroll was $53,422,000, would have paid $847,700. The Yankees, at $61,327,870, would have paid $3,614,754.
Q. Does free agency change?
A. No. Players remain property of their clubs until they have six years of major league experience.
Q. What about salary arbitration?
A. It remains in place for players with three to six years of major league experience. Cases will be heard by three-person panels instead of single arbitrators. It will start with 50 percent of the cases in 1998 and 75 percent of the cases in 1999 and go to 100 percent of the cases in 2000 and 2001.
Q. Will players receive credit for missed service time during the strike?
A. Yes. There are 14 players who now have enough service time to be classified as free agents, most notably pitcher Alex Fernandez of the White Sox and outfielder Moises Alou of the Expos.
Q. Does the deal mean baseball will hire a full-time commissioner?
A. Acting commissioner Bud Selig says yes. He said the owners' executive council will begin a search immediately.
Q. When does interleague play start? How many games are involved?
A. Each team will play 15 or 16 games against teams in the corresponding division. The games will begin June 12 with the four NL West teams playing the four AL West teams. The other divisions would start the next day.f hvyof hvyo
Q. What else will change?
A. The deal includes several other agreements, including:
* The major-league minimum salary will be increased to $150,000 next season, with subsequent increases each season.
* Owners will have the right to add two expansion franchises, provided that they decide by Dec. 31, 1999, and the teams start play by 2002.
* Teams must give all players single rooms on road trips.
* The union agrees to release owners from any damages that may have occurred during the strike and to drop all outstanding litigation stemming from the strike.
* The players' share of the ticket money from the first three games of each Division Series will be reduced from 80 percent to 60 percent.
LENGTH: Medium: 86 linesby CNB