MLB players, owners reach tentative labour deal
IRVING, Texas — Baseball players and owners reached a tentative agreement Wednesday on a five-year labour contract that will extend the sport’s industrial peace to 26 years.
After days of near round-the-clock talks, negotiators reached a verbal agreement about 3-1/2 hours before the expiration of the current pact. Then they worked to draft a memorandum of understanding, which must be ratified by both sides.
“Happy it’s done, and baseball is back on,” Los Angeles Dodgers pitcher Brandon McCarthy said.
One key issue was the level of ‘luxury tax’ which is a tax paid by teams that exceed a set level of salary payments; effectively operating as a soft salary cap.