Collective Bargaining Agreement Analysis

As part of Unit Three, we’ve talked at length about collective bargaining agreements
and their importance to North American professional sport leagues. Such agreements
form the foundation of how these leagues operate, setting a framework for issues as
diverse as salary caps to league discipline to players and teams. While we’ve looked at
collective bargaining agreements from a broad perspective, I’m asking you to dive
deeper on a specific league of your choosing’s current CBA.
Specifically, you should choose a current collective bargaining agreement from one of
the five major North American sport leagues (MLB, NFL, NBA, NHL, MLS) for further
analysis. Here are some of the major points you should look at:
History of Negotiations Towards This CBA – Was this collective bargaining
agreement negotiated easily between the two parties? Or did it cause a work stoppage?
If it caused a work stoppage, what were the major points of conflict between the two
parties? What compromises were made to strike a deal?
Free Agency Rights/Salary Arbitration – In your chosen league, how long does it take
a player to become an unrestricted free agent? Does your league feature restricted free
agency? Is salary arbitration available to your league’s players? What type of arbitration
does it use if it is?
Salary Cap – Does your chosen league have a salary cap, negotiated through a CBA? If
it does, is it a “hard” cap or a “soft” cap with exceptions? What is the current salary cap
in your league and how is it calculated? What percentage of league revenues is put
towards the players’ share of the salary cap? Is there a “maximum” amount that a player
can be paid on a contract?
Luxury Tax – Does your league feature a luxury tax? What is the threshold that a team
has to cross before paying the luxury tax? How much is the luxury tax? Are repeat
violators punished at a greater rate? How is luxury tax revenue distributed?
Other Interesting Issues – Each league its own interesting CBA clauses regarding
things like player discipline, rookie wage scales, age limits, minimum salaries, roster
sizes, etc. What interesting aspects of your chosen league’s CBAs did you find? Why
are they important to the league’s operations?
Pending Issues for Future CBA Negotiations – Most leagues are already talking
about renewing or renegotiating their current CBAs. Through your research, which
issues, in your opinion, might be important in the negotiation of a new CBA for your
chosen league?