Players, owners make five-year labor deal public

ST. LOUIS -- Baseball players and owners proclaimed an unprecedented era of labor peace, finalizing a new five-year collective bargaining agreement Tuesday night before Game 3 of the World Series.

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Lawyers struck the deal last weekend during negotiations in New York, then worked on putting it in writing. The agreement, which runs through the 2011 season, is subject to ratification by both sides.

"This is an historic agreement for Major League Baseball and is emblematic of the spirit of cooperation and trust that now exists between the clubs and players," commissioner Bud Selig said. "We are in the midst of baseball's golden age."

The current contract, reached in August 2002, was set to expire Dec. 19. After eight work stoppages between 1972 and 1995, baseball will be assured of 16 years of labor peace.

"I think you always have a better relationship when both sides are making money," Detroit manager Jim Leyland said before the Tigers played St. Louis, with the Series tied at 1-1.

Bud Selig announces the new deal, which runs through 2011. (AP)

"That kind of always seems to work out in the end -- doesn't it? -- for whatever reason, when the owner's happy and putting a little in his pocket, and the player is happy and putting a little in his pocket. In our case, I guess in our game, a lot in both pockets."

The deal continues, with minor modifications, existing luxury tax and revenue-sharing rules, provisions that funneled money from large-market teams to their competitors. The payroll threshold for the luxury tax increases from $136.5 million this year to $148 million next year, then goes up about 5 percent annually, a baseball official familiar with the deal said, speaking on condition of anonymity because the agreement hasn't been announced.

The minimum salary increases, from $327,000 this year to $380,000 next season, and amateur draft pick compensation for some free-agents who sign with new teams, will be eliminated.

Also, teams that reach targets for revenue-sharing will be rewarded under the new agreement, and those that fail will be penalized.

With the new labor contract, baseball's drug-testing rules also will be extended through the 2011 season. When the sides agreed to toughened drug-testing last November, they said that deal would run through the next labor contract.