Highlights of new CBA Revenue sharing ‧ Under the new deal, larger-revenue clubs will continue to transfer $326 million in local revenue to smaller revenue-generating franchises. Net transfer amounts will continue to grow with revenue and changes in disparity. ‧ Tax rates will be reduced to 31 percent for all clubs. ‧ Smaller-revenue clubs must continue to invest revenue income to improve the team's on-field performance. Competitive balance tax ‧ Levels remain unchanged from the prior contract: 22.5 percent the first time a club exceeds the threshold, 30 percent the second time and 40 percent the third time. Clubs that paid at a 40 percent rate in 2006 will enter new contract at same rate. ‧ Thresholds reset to $148 million in 2007, $155 million in 2008, $162 million in 2009, $170 million in 2010 and $178 million in 2011. First-Year Player and Rule 5 Drafts ‧ Clubs that can't sign their first- or second-round picks will be slotted in for a compensatory pick at the same slot in the following year's draft. Clubs that can't sign a third-round pick will receive a sandwich pick between the third and fourth rounds at the following year's draft. ‧ Clubs have an Aug. 15 deadline to sign all draft selections except college seniors. ‧ Minor League players can now be protected from the Rule 5 Draft for an extra year, to four or five years. Free agency ‧ Dec. 7, Dec. 19, Jan. 8 and May 1 deadlines are eliminated. ‧ Date to tender contracts moved to Dec. 12 from Dec. 20. Free agent compensation ‧ Type C free agent classification is eliminated. ‧ Teams that lose a Type B free agent will now earn a sandwich pick instead of taking selection from club that signed player. ‧ The pool of Type A players shrinks from top 30 percent of each position to top 20 percent, while the Type B player pool will be reduced from the top 31-50 percent of players to 21-40 percent. Drug policy ‧ Drug-testing rules will stay unchanged. ‧ Both sides agreed to further discuss HGH testing in the future. Minimum salary ‧ Major League minimum salary will increase to $380,000 in 2007, $390,000 in 2008, $400,000 in 2009 and to a cost-of-living increase in 2011. ‧ Minor League minimum salary will increse to $60,000 in 2007, $62,500 in 2008 and $65,000 in 2009. Other highlights ‧ Players traded in the middle of a multi-year contract no longer have the right to demand a trade. Players who currently hold that right from the last CBA are grandfathered in and can still demand a trade. ‧ Salary arbitration offer deadline moves to Dec. 1, while the acceptance deadline moves to Dec. 7. ‧ All-Star Game winner continues to have home-field advantage in World Series. ‧ There will be no contraction during the term of the agreement ‧ The Commissioner's discretionary fund will remain at $10 million a year. ‧ As in the old contract, clubs cannot borrow to pay existing debt but must raise revenue or reduce expenses to pay existing non-player-related debt. --

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