What’s the deal? Highlights of the MLB contract that ended the lockout

Major League Baseball will return this weekend as players from all over the world converge on Florida and Arizona for the start of spring training.

A few days ago that didn’t seem possible, with owners and players locked into a contentious dispute over a new collective agreement. Those issues have been resolved in time to preserve a full 162-game season, with opening day scheduled for April 7.

The contract is a complex document that will run dozens of pages long. The full details might not be available for a few more days, but the most notable changes have already been made public. Here are some of the highlights:

Competitive balance tax

The terms: Starts at $230 million (U.S.) in 2022 and grows to $244 million by year five.

The details: It’s more commonly known as the luxury tax, which is used to penalize the league’s highest spenders. Clubs are taxed on every dollar above the limit at escalating rates. It’s not a salary cap, but most teams treat it like one. In 2021, only the Los Angeles Dodgers and San Diego Padres exceeded the previous $210-million limit. The Jays have never exceeded it.

Pre-arbitration bonus pool

The terms: $50 million (U.S.)

The details: This is a pool of money that didn’t previously exist and will be distributed to players who have yet to reach their arbitration years. The specifics weren’t immediately known, but in previous proposals the league suggested it would be distributed based on performance, more specifically by wins above replacement, or WAR. The players initially requested the pool of money grow over time, but it will remain at $50 million for the duration of the deal.

Minimum salaries

The terms: Starts at $700,000 this year and grows to $780,000 by year five.

The details: One of the top priorities for the union was securing more money for its most inexperienced members. The best way was raising the minimum salary, and this is one area where the players scored a major win. In 2021, the minimum salary was $570,500.

Draft lottery

The terms: Six teams

The details: For the first time in league history, there will be a lottery to determine the top six picks of the annual MLB draft. This format came at the request of the players to discourage tanking. They were initially hoping for an eight-team lottery.

Expanded post-season

The terms: 12-team format

The details: The 10-team post-season has been increased by two. The top two division winners in each league will receive a bye through the first round, while the remaining division winner and three wild-card teams will play best-of-three series to see who advances.

International draft

The terms: To be determined

The details: Players and owners have until July 25 to agree on an international draft that would begin in 2024. If a deal is not reached by the deadline, the qualifying offer which can result in draft-pick compensation will make its return. Players who were either born or attended school in Canada, the United States or one of its territories are currently eligible for the summer draft while international players are free agents who can sign as young as 16.

Rule changes

The terms: Universal designated hitter, service-time changes, limiting minor-league options, more balanced schedule

The details: The National League will adopt the DH for the upcoming season. Players can only be optioned to the minors five times in one season. Starting in 2023, commissioner Rob Manfred said the schedule will be adjusted so that all 30 teams have at least one series against each other.