A troublesome barrier to long-term stability was cleared when the parties reached a collective bargaining agreement in November 1996. Just 3 weeks earlier the owners had rejected an agreement between their new negotiator, Randy Levine, and Fehr. A major factor in breaking the deadlock was the signing of free agent Albert Belle by Chicago White Sox owner Jerry Reinsdorf. Reinsdorf had argued the need for fiscal restraint among owners, but then he signed Albert Belle for $55 million over 5 years, far more than any player previously had received. With Reinsdorf?s actions ignoring his words, opposition by the owners dissolved into a 26-4 ratification of the agreement (Monthly Labor Review).
The new agreement contains many of the features of the old one, with little modification. Minimum salaries were upped from $109,000 to $150,000 in 1997. The principal change is a luxury tax on team payrolls exceeding $51 million in 1997, $55 million in 1998, and $58.9 million in 1999. No luxury tax will be in effect in 2000, and the players can opt to extend the agreement to 2001 without a tax. Proceeds from the luxury tax go into a revenue-sharing pool, along with monies from a new 2.5-percent tax on player salaries. The pool, which is further increased by the donation of some local broadcast revenue of wealthy clubs, is distributed to 13 small-market teams to enable them to compete better financially (Koppett 233).
The new revenue sharing and salary restraints are expected to be relatively moderate in their impact. Basketball and football have similar constraints on salary growth, and players in those sports have continued to enjoy generous economic rewards. Perhaps more important, as a result of the new arrangements, these sports have not had work stoppages. Hopefully, baseball can do the same. As part of the new agreement, the owners and players agreed to inter-league play for the first time during the regular season. The move should have and did help stimulate lagging attendance (Monthly Labor Review).
In conclusion, the baseball strike of 1994 was the longest and costliest work stoppage in the history of professional sports. Many view the strike as a huge waste of time, snce no real modification were put into effect. But, finally after 234 days, more than $1 billion in losses, no World Series and not even a settlement, America had its baseball back.