Baseball : Collective bargaining agreement set till 2011

ST. LOUIS -- Bud Selig and Donald Fehr sat in theluxury tax increases from $136.5 million this year
center of a dais, flanked by players and owners.to $148 million next year, then goes up each year
For the second time in four years, they wereuntil it reaches $178 million in 2011.
proclaiming labor peace.Under the current contract, the luxury tax mainly
"The last agreement produced stunning growthhas affected the New York Yankees, who paid
and revenue," Selig said. "I believe that five years$11.8 million in 2003, $26 million in 2004 and $34.1
from now people will be stunned how well wemillion in 2005. Boston paid $3.15 million in 2004 and
grew the sport."$4.1 million last year, and the Angels paid about
The five-year collective bargaining agreement,$900,000 in 2004.
which runs through the 2011 season, is subject toThe minimum salary increases, from $327,000 this
ratification by both sides. The deal makesyear to $380,000 next season, and amateur draft
relatively minor changes to the previouspick compensation for some free agents who sign
agreement and doesn't alter baseball's drug rules.with new teams will be eliminated. Players selected
"This is the golden era in every way," Selig said.in the June amateur draft who aren't college
The current contract, reached in August 2002,seniors must sign by Aug. 15, taking away the
was set to expire Dec. 19. After eight workleverage of any threats to remain in school.
stoppages between 1972 and 1995, baseball willIn addition, the Dec. 7 and Jan. 8 deadlines for
be assured of 16 years of labor peace.free agents to re-sign with their former teams
The deal continues, with some tinkering, existingwere eliminated, and management agreed there
luxury tax and revenue-sharing rules, provisionswould be no contraction under the term of the
that funneled money from large-market teams toagreement.
their competitors. The payroll threshold for the