MLB to ban personal-services deals, milestone bonuses
Personal-service deals and "milestone" bonus clauses -- such as those used in Albert Pujols' free-agent deal with the Los Angeles Angels this off-season -- reportedly will no longer be allowed.
Teams and agents have been told by Major League Baseball and the Players Association that they will not approve such clauses to future contracts, ESPN reported Friday according to sources of both entities.
The changes are in response to long-term deals signed by Pujols and Washington Nationals third baseman Ryan Zimmerman, both of which include personal-services deals for after their playing careers.
The "milestone" bonus clauses, such as the $3 million Pujols could receive if he reaches 3,000 hits, violate a provision in the collective bargaining agreement that bars contracts incentives based on statistical achievements.
Re: MLB to ban personal-services deals, milestone bonuses
Milestone bonuses aren't included in the luxury tax cap. So a team could load a contract with rediculous bonuses like AB's etc to pay a guy more and get one over on the other teams... These are both good developments.
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