Owners, players, MLB officials and the Major League Baseball Players Association reached an agreement Wednesday night on new a five-year collective bargaining agreement, the league announced Friday afternoon.
The deal includes revised rules for free-agent and qualifying offer compensation, the international amateur market and luxury tax threshold.
In the previous labor deal, teams were fined for payrolls exceeding $189 million. In the new agreement, the luxury tax threshold will rise annually from $195 million to $210 million. Teams that repeatedly exceed the payroll threshold by a certain rate will be subject to increasing tax rates, which could reach as high as 90 percent.