2003 - 2006 MLB CBA -- Page 81 ~ 100

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(d) The Competitive Balance Tax rate applicable to a Club with an Actual Club Payroll above the Tax Threshold for a third or fourth consecutive time during the Agreement shall be 40%. The Competitive Balance Tax rate applicable in the 2006 Con- tract Year to a Club with an Actual Club Payroll that was above the Tax Threshold in the 2003 and 2005 Contract Years (but not in the 2004 Contract Year) shall be 30%. A Club with an Actual Club Payroll above the Tax Threshold in the 2006 Contract Year but with an Actual Club Payroll in the 2005 Contract Year that was not above the Tax Threshold shall be assessed no tax, even if the Club's Actual Club Payroll was above the Tax Threshold in the 2003 and 2004 Contract Years. (4) Collection of Competitive Balance Tax Proceeds (a) On the December 20 following each Contract Year, the Com- missioner's Office shall notify the Association and all Clubs of any amounts owed by any Clubs under the Competitive Balance Tax. Clubs shall make Competitive Balance Tax payments to the Com- missioner's Office on or before January 31 of the next calendar year. (b) Any Club that does not remit the full amount of the Compet- itive Balance Tax due by that date shall have its next Major League Central Fund (``Central Fund'') distribution and subsequent distribu- tions, each net of any debt service obligation to Fleet Bank, reduced by up to 50% until such obligation is satisfied. For purposes of this subparagraph (b) only, royalty payments from Major League Base- ball Properties shall not be considered part of a Club's Central Fund distribution. Beginning with the day following the payment date specified in subparagraph (a) above, interest shall be charged on any unpaid Competitive Balance Tax amounts at the Imputed Loan Interest Rate for the then current Contract Year. Any interest col- lected pursuant to the preceding sentence shall be for the benefit of and made available to the Industry Growth Fund and used for the purposes set out in Article XXV. Page 81 C. Determination of Actual Club Payroll (1) Definition of Actual Club Payroll ``Actual Club Payroll'' of a Club in a Contract Year shall be the sum of: (a) a 1/30th share of Player Benefit Costs (and a similar pro rata share if the number of Major League Clubs changes), as determined in Section D below; (b) the sum of the yearly Salaries (as determined in accor- dance with Section E below and as allocated among Clubs in accordance with this Section C) attributable to that Contract Year of all Players under a Uniform Player's Contract with the Club for that Contract Year (including optionally assigned contracts); and (c) any other amount includible in or deductible from Actual Club Payroll as a result of the operation of Section C(2)(g) below or as a result of any Club, any Player and/or either of the Parties hereto having engaged in a transaction contrary to Section G(1) below or as a result of an award by the Arbitration Panel under Article XI and/or Section F below. (2) Rules for Allocation of Salary (a) General Rule If a Player remains on a Major League Club's Active List (as defined in Article XXI) for an entire championship season, then all of the Salary attributable to the Contract Year in which that championship season falls shall be allocated to the Club's Actual Club Payroll in that Contract Year. (b) Assignment of Contract If a Uniform Player's Contract is assigned by any means to another Major League Club, the assignor Club shall be allocated Salary through the date of the assignment and Salary shall begin being allocated to the assignee Club on the following day, regard- less of the Player's reporting date. Beginning with Player assign- ments after September 30, 2002, an assignor Club that pays cash consideration to defray all or part of the salary obligation of the Page 82 assignee Club for an assigned Player shall include such cash con- sideration in its Actual Club Payroll in the Contract Year in which the cash consideration is paid; provided, however, that any such cash consideration included as part of a Player assignment made during the 2006 Contract Year but not payable until the 2007 Contract Year shall be included in the assignor Club's 2006 Actu- al Club Payroll to the extent that the assignee Club does not have equivalent salary obligations under Player contracts obtained in the assignment in the 2007 championship season or beyond. Any cash consideration that is, pursuant to the preceding sentence, included in the Actual Club Payroll of the payor Club shall be subtracted from the Actual Club Payroll of the payee Club in the same Contract Year in which it is added to the payor Club's Actu- al Club Payroll. (c) Salary Increase Upon Assignment If a Uniform Player's Contract provides for an increase in Salary upon its assignment to another Major League Club, such increase shall be included in a Player's Salary upon assignment and attributed to the Contract Year (or Years) in which it is to be paid. Any such increase in Salary attributable to the Contract Year during which the assignment occurred shall be allocated to the Actual Club Payrolls of the assignor and assignee Clubs pursuant to Section C(2)(b) above. Any such increase in Salary attributa- ble to a later Contract Year shall be allocated exclusively to the assignee Club. (d) Contract Signed After Opening Day If a Player first enters into a Uniform Player's Contract with a Club after opening day of the championship season with a Base Salary payable over a full championship season, the Club shall include in Actual Club Payroll such pro rata portion of the Base Salary attributable to that Contract Year as the number of days that the Player was on the Club's Active List (as defined in Arti- cle XXI) bears to the number of days in the championship sea- son. If such a Player has a Base Salary expressly payable only over the portion of the championship season that the Player is on the Club's Active List, the Club shall include in Actual Club Pay- roll the entire Base Salary attributable to that Contract Year. Page 83 (e) Termination of Contract (i) If a Club terminates a Uniform Player's Contract that cov- ers a single championship season, the Club shall include in its Actual Club Payroll for the Contract Year in which that season falls any Salary paid to that Player, either under this Agreement or a Special Covenant to the Contract (subject to any offset called for by this Agreement or a Special Covenant). (ii) If a Club terminates a multi-year Uniform Player's Con- tract while it remains obligated to pay Salary under either this Agreement or a Special Covenant to the Contract, Salary shall be allocated to that Club for each Contract Year during which its obligation continues. Salary shall be attributed to each such Con- tract Year pursuant to this Article XXIII (subject to any offset called for by this Agreement or a Special Covenant). This attri- bution shall apply even if the Club pays the Salary in advance. (f) Split Contracts The earnings of a Player signatory to a Split Contract shall be included in Actual Club Payroll at the total amount of the Play- er's actual baseball earnings under that Contract from Major League Clubs (and from Minor League clubs, if any) for that Contract Year, subject to subparagraph (g) below. (g) Outright Assignment to a Minor League Club If a Uniform Player's Contract is assigned outright to a Minor League club, the Club shall exclude from its Actual Club Payroll such pro rata portion of the Salary attributable to that Contract Year as the number of days during the championship season that the Player was off the Major League Club's 40-man roster bears to the number of days in the championship season; provided, however, that the above exclusion shall not apply to the Salary of any Player whose Contract has been assigned outright to a Minor League club for the purpose of defeating or circumventing the intention of the Parties as reflected by this Article XXIII. Page 84 D. Benefits or Player Benefit Costs (1) Definition The Clubs' Benefits or Player Benefit Costs for a particular Con- tract Year shall include the sums paid (or to be paid on a proper accrual basis for that Contract Year) by or on behalf of the Clubs for, to, or on behalf of present Players (and former Players when expressly noted) for: (a) Contributions to the Major League Baseball Players Ben- efit Plan, in the full amounts called for by paragraph 5 of the Agreement Re: Major League Baseball Players Benefit Plan (including contributions made on behalf of former Players and others); (b) Workers' compensation premiums, payroll, unemploy- ment compensation and social security taxes (including payments made on behalf of a Player released from a Contract that covers that Contract Year, provided that the Player's Salary is included in a Club's final Actual Club Payroll for that Contract Year); (c) Spring training allowances (as described in Article VII(C)), championship season meal and tip allowances (as described in Article VII(B)), All-Star Game expenses (as described in Article VII(E)) and ``in-season supplemental allowances'' (as described in Article VII(F)); (d) Moving and traveling expenses (as described in Article VIII), including payments made to former Players in connection with relocations resulting from assignments while they were active Players; (e) Contributions (in their entirety) to the post-season Players' pool as described in Article X; (f) The College Scholarship Plan (including payments made on behalf of former players); and (g) Player medical costs (i.e., fees to doctors, hospitals, and other health care providers, and the drugs and other medical sup- plies for the treatment of Player injuries), but not including salaries of trainers or other Club personnel, or the costs of Club medical or training equipment, or any costs reimbursed or paid Page 85 for through workers' compensation or any other medical insur- ance. Notwithstanding the foregoing, the amount of Player med- ical costs included in ``Benefits'' may not increase by more than ten percent (10%) each Contract Year beginning with the increase from the 2002 to the 2003 Contract Year. (2) Limitation on Annual Increase Notwithstanding the foregoing, beginning with the increase from the 2002 to the 2003 Contract Year, the annual rate of increase for Player Benefit Costs in any Contract Year may not exceed the annu- al rate of increase over that year in the combined ``sum of the year- ly Salaries'' (described in Section C(1)(b) above) for all Clubs. E. Determination of Salary The determination of a Player's Salary for a particular Contract Year for the purposes of interpretation and application of this Article XXIII only shall be in accordance with the following rules. (l) General Rule ``Salary'' shall mean the value of the total compensation (cash or otherwise) paid to a Player pursuant to the terms of a Uniform Play- er's Contract, including any guarantee by the Club of payments by third parties, for a particular championship season. Consistent with the rules set out below, all compensation paid to a Player pursuant to the terms of a Uniform Player's Contract shall be attributable to the Contract Year(s) in which the Player is required under the Con- tract to render services to a Club as a baseball player, regardless of how the compensation is characterized under the Contract. (2) Average Annual Value of Guaranteed Multi-Year Contracts A Uniform Player's Contract with a term of more than one (1) championship season (``Multi-Year Contract'') shall be deemed to have a Salary in each Guaranteed Year equal to the ``Average Annu- al Value'' of the Contract (plus any bonuses subsequently included by operation of Section E(4) below). ``Average Annual Value'' shall be calculated as follows: the sum of (a) the Base Salary in each Guaranteed Year plus (b) any portion of a Signing Bonus (or any Page 86 other payment that this Article deems to be a Signing Bonus) attrib- uted to a Guaranteed Year in accordance with Section E(3) below plus (c) any deferred compensation or annuity compensation costs attributed to a Guaranteed Year in accordance with Section E(6) below shall be divided by the number of Guaranteed Years. (3) Signing Bonuses Any Signing Bonus in a Uniform Player's Contract (and any other payment this Article deems to be a Signing Bonus) shall be attributed, pro rata, over the Guaranteed Years of the Contract. If a Contract contains no Guaranteed Years, the Signing Bonus shall be attributed in full to the first year of the Contract. (4) Performance, Award and Other Bonuses (a) Any amounts that are actually earned by a Player as Perfor- mance Bonuses, Award Bonuses or any other bonuses properly included in a Uniform Player's Contract shall be included as part of the Player's Salary in the Contract Year in which the service or per- formance giving rise to the Bonus was provided. Potential bonuses shall not be included in the Average Annual Value calculation made pursuant to Section E(2) above. (b) A Special Covenant in a Uniform Player's Contract that pro- vides that Player performance or achievement in one year of the Contract will increase the Base Salary in other year(s) of the Con- tract shall not be considered in the determination of Salary until the triggering event occurs (other than, if applicable, as a ``potential bonus''), unless it is determined by the Arbitration Panel that the Special Covenant was designed to defeat or circumvent the intention of the Parties as reflected in this Article XXIII. As long as such a finding is not made, the additional Base Salary triggered by the Spe- cial Covenant shall count as part of the Player's Salary in the Con- tract Year(s) to which it is attributed by the Contract once the triggering event has occurred. Multi-Year Contracts shall not be recalculated on an Average Annual Value basis once the triggering event has occurred; the additional Base Salary shall be added to the Salary as originally calculated for the Contract Year in question. Page 87 (5) Option Contracts (a) Definitions (i) A ``Club Option Year'' shall mean a championship season covered by a Uniform Player's Contract in which the amount payable pursuant to paragraph 2 of the Contract becomes due or guaranteed at the election of the Club or by reason of specified performance by a Player. Club Option Years shall not be consid- ered ``Guaranteed Years.'' In addition, any other championship season included in a Multi-Year Contract that is not a Guaranteed Year shall be treated as a Club Option Year. (ii) A ``Player OptionYear'' shall mean a championship season covered by a Uniform Player's Contract: (A) in which the amount payable pursuant to paragraph 2 of the Contract becomes due or guaranteed at the election of the Player; or (B) that can be nulli- fied by a Player for a reason other than those set forth in para- graph 7 of the Contract. A Player Option Year shall be considered a ``Guaranteed Year'' if, pursuant to the Player's right to elect or subject to his right to nullify, the terms of that year are guaran- teed within the definition in Section A(8); provided, however, that a Player Option Year shall not be considered a Guaranteed Year if the payment the Player is to receive if he declines to exercise his option or nullifies the championship season is more than 50% of the Base Salary payable for that championship season. (iii) The parties recognize that Uniform Player's Contracts have covered and may cover championship seasons that could be characterized under the above definitions as both ``Club Option Years'' and ``Player Option Years'' (hereinafter referred to as a ``Mutual Option Year''). Salaries under any such Contract that cannot extend beyond the 2006 Contract Year shall be calculated as if the Mutual Option Year is a Player Option Year. Salaries under any such Contract that can extend beyond the 2006 Con- tract Year shall be calculated as if the Mutual Option Year is a Player Option Year unless, pursuant to subparagraph (c)(ii) below, the ``Club Option Year Value'' exceeds 122.5% of the ``Highest Guaranteed Year Value'' prior to the Mutual Option Year, or its substitute. In the latter event, Salaries under the Con- tract shall be calculated as if the Mutual Option Year is a Club Page 88 Option Year and the calculation called for in subparagraph (c)(ii)(B) below shall be made and the entire Signing Bonus shall be allocated over the Guaranteed Years prior to the Mutual Option Year. (b) Option Buyouts (i) General Rule (A) If a Uniform Player's Contract contains a Club Option Year or a Player Option Year that is not deemed a Guaranteed Year pursuant to subparagraph (a)(ii) above and the Player is to receive consideration upon the non-exercise of that option or the nullification of a championship season (``Option Buy- out''), then such Option Buyout shall be deemed a Signing Bonus. If a Uniform Player's Contract contains an Option Buyout for a Club decision not to exercise a Club Option Year and an Option Buyout for a Player decision not to exercise a Player Option Year (or to nullify a championship season) that is deemed a Signing Bonus pursuant to this subparagraph (b)(i), then the higher Option Buyout payment shall be deemed the Signing Bonus. (B) If a Contract contains an Option Buyout relating to more than one Option Year, then only the Option Buyout that relates to the earliest Option Year in the Contract shall be deemed a Signing Bonus. If, however, the Player ultimately receives an Option Buyout that relates to an Option Year other than the earliest Option Year, that Option Buyout shall be included in Salary in the Contract Year covered by the option that was not exercised. (ii) Potential Adjustment to Payroll or Tax Refund Notwithstanding subparagraph (b)(i) above, if the Player ulti- mately does not receive the Option Buyout, then for the Contract Year covered by that option, no portion of the Buyout shall be included in any Club's final Actual Club Payroll. In addition, any Club whose final Actual Club Payroll in a previous Contract Year had included that Buyout (or a portion thereof) may elect to: Page 89 (A) receive a deduction (in the full amount of the Buyout included in previous Contract Years) in its final Actual Club Payroll in the Contract Year covered by that option; or (B) receive a distribution from the Competitive Balance Tax proceeds described in Section H(1) below in the amount of any Competitive Balance Tax paid by that Club for any Contract Year as a result of the previous inclusion of the Buyout in the Club's final Actual Club Payroll. (c) Club Option Years (i) General Rule. If a Uniform Player's Contract covers one or more seasons that are Club Option Years, the Player's Salary for the championship seasons that are Club Option Years, if exer- cised, shall be the total of the Base Salary and any bonuses included by operation of Section E(4) above. (ii) Contracts Extending Into 2007 or Beyond. This subpara- graph (ii) shall apply only to a Uniform Player's Contract agreed to after September 30, 2002 that includes one or more Club Option Years that fall in the 2007 Contract Year or later. (A) Special Definitions. For the purposes of this subpara- graph (ii) only, the following definitions shall apply: ``Club Option Year Value'' shall be the Salary attributed to a Club Option Year under subparagraph (i) above, plus any potential bonuses (other than Award Bonuses) attributable to that Year, minus any Option Buyout that relates to that Club Option Year. ``Highest Guaranteed Year Value'' shall be the sum of the Base Salary plus any attributed Signing Bonus, deferred com- pensation or annuity costs, plus any potential bonuses (other than Award Bonuses) in the Guaranteed Year of the Contract with the highest such sum; provided, however, that if the High- est Guaranteed Year Value is itself greater than 127.5% of the Average Annual Value of the Contract, then 127.5% of the Average Annual Value of the Contract shall be substituted for the Highest GuaranteedYear Value in the calculation called for by subparagraph (ii)(B) below. Page 90 (B) Rule. If the Club Option Year Value exceeds 122.5% of the Highest Guaranteed Year Value, then the difference between the Club Option Year Value and 122.5% of the High- est Guaranteed Year Value shall be treated as a Signing Bonus in the calculation of the Contract's Average Annual Value. (C) Potential Tax Refund. If a Club Option Year in a Uni- form Player's Contract subject to this subparagraph (ii) is not exercised, any Club (including a Club to which the Contract was assigned) that paid Competitive Balance Tax in a Contract Year in which that Club's final Actual Club Payroll included an amount attributed under subparagraph (ii) shall receive a distribution from the Competitive Balance Tax proceeds described in Section H(1) below in the amount of any Com- petitive Balance Tax paid as a result of that attribution. (d) Player Option Years (i) If a Player fails to exercise or chooses to nullify a Player OptionYear that is deemed a GuaranteedYear pursuant to Section E(5)(a)(ii) above, the difference between the amount paid to the Player under his Contract (including any Option Buyout pay- ment) and the amount that has been attributed to Actual Club Payroll of a Club under that Contract shall be added to (or sub- tracted from) Actual Club Payroll in the Contract Year in which the Player Option Year falls. If the Contract has been assigned, the adjustment called for in the preceding sentence shall be made to the Actual Club Payroll(s) of the Club(s) to which Salary under that Contract had been attributed in any Contract Year. If a Play- er exercises or fails to nullify a Player Option Year that was not deemed a Guaranteed Year, the Player's Salary in the Player Option Year shall be the difference between the Salary provided in the Player Option Year (including any earned bonuses) and the Option Buyout that had been attributed, in all previous Contract Years, to a Club pursuant to Section E(5)(b)(i) above. (ii) If a Player Option Year falls in the 2007 Contract Year or later, and the Base Salary (plus any attributed Signing Bonus, deferred compensation or annuity costs) in the Player Option Year (``Player Option Year Value'') is less than 80% of the Base Salary (plus any attributed Signing Bonus, deferred compensa- Page 91 tion or annuity costs) in the Guaranteed Year with the smallest such figure before the first such Player OptionYear (80% Figure), then the difference between the 80% Figure and the Player Option Year Value shall be allocated pro rata across the Guaran- teed Years preceding the first such Player Option Year; provided, however, that if the 80% Figure is itself less than 75% of the Average Annual Value of the Contract (calculated as if the Play- er Option Year was not a Guaranteed Year), then the 80% Figure shall instead be 75% of the Average Annual Value calculation set out immediately above. (iii) Potential Tax Refund. If a Player exercises or chooses not to nullify a Player Option Year subject to subparagraph (d)(ii) above, any Club (including a Club to which the Contract was assigned) that paid Competitive Balance Tax in any Contract Year in which that Club's final Actual Club Payroll included an amount attributed under subparagraph (ii) above shall receive a distribution from the Competitive Balance Tax proceeds described in Section H(1) below in the amount of any Competi- tive Balance Tax paid as a result of that attribution. (6) Deferred Compensation (a) Definition ``Deferred Compensation'' shall mean any Salary payable to a Player pursuant to a Uniform Player's Contract in a Contract Year after the last championship season for which the Contract requires services as a baseball player to be rendered. (b) Attribution (i) Deferred Compensation shall be included in a Player's Salary as if paid in the championship season to which it is attrib- uted under a Uniform Player's Contract. If a Contract does not attribute Deferred Compensation, the Contract shall be treated as if the Deferred Compensation was attributed equally to each of the Guaranteed Years in the Contract. (ii) If the Deferred Compensation is to be paid with interest at an effective rate that is within one and one-half percentage points of the Imputed Loan Interest Rate for the first Contract Year cov- Page 92 ered by the Contract, then the Deferred Compensation shall be included at its stated value. Otherwise, the Deferred Compensa- tion shall be included at its present value in the season to which it is attributed, said present value to be calculated by increasing any such payments by the Contract's stated interest rate, if any, and then reducing such payments back to their present value by applying as a discount rate the Imputed Loan Interest Rate for the first Contract Year covered by the Contract. If the terms of a Con- tract are confirmed by the Association and the Office of the Com- missioner before the Imputed Loan Interest Rate for the first Contract Year covered by the contract is available, the Imputed Loan Interest Rate shall be the annual ``Federal mid-term rate'' as defined in section 1274(d) of the Internal Revenue Code for the month preceding the month in which terms are confirmed. If a Uniform Player's Contract uses the date or year in which a Play- er retires as a triggering event for the commencement of payment of the Deferred Compensation, it will be assumed for purposes of calculating Salary under this Article only that the Player retires on the day that he reaches age 40 or at the end of the Contract, whichever is later. (c) An ``Annuity Compensation Arrangement'' is an agreement in a Uniform Player's Contract whereby the Club promises to purchase an annuity to pay the Player after he is no longer required to render services as a baseball player under such Uniform Player's Contract. (i) The portion of the cost of the annuity to be paid by the Club while the Player is required to render services as a baseball player under the Contract shall be included as Salary for the Con- tract Year in which such cost is to be paid. (ii) The portion of the cost of the annuity instrument to be paid by the Club after the Player is no longer required to render services as a baseball player under such Contract, if any, shall be treated as Deferred Compensation attributable pro rata over the Guaranteed Years of the Contract at its present value as calculat- ed pursuant to paragraph (6)(b) above. Any compensation that the Player is scheduled to receive pursuant to such Annuity Compen- sation Arrangement shall not be considered Salary or Deferred Compensation. Page 93 (7) Loans to Players For purposes of this Article XXIII, the following rules shall apply to any loans made by a Club to or at the direction of a Player. (a) If any such loan bears no interest rate or an effective inter- est rate more than one and one-half percentage points below the Imputed Loan Interest Rate, then an amount of ``Imputed Income'' as calculated pursuant to subparagraph (b) below shall be included in the Player's Salary for each Contract Year that the loan remains unpaid. For any other loan, there shall be no ``Imputed Income'' (as defined in subparagraph (b) below) includ- ed in the Player's Salary. (b) ``Imputed Income'' for each Contract Year covered by a Uniform Player's Contract shall be calculated by multiplying the difference between the Imputed Loan Interest Rate and the stated rate, if any, by the outstanding balance of the loan. (c) If a Club has made a loan to a Player and forgives part or all of the loan, the forgiven loan amount shall be counted as Salary in the Contract Year in which the loan is forgiven; provid- ed, however, that if a loan that is made after September 30, 2002 is forgiven in a Contract Year in which there is no Competitive Balance Tax, and if the Club forgiving the loan would have been assessed a Competitive Balance Tax for any ContractYear had the loan, by itself or in combination with other loans, been consid- ered Salary from the outset, then the forgiveness of the loan shall be presumed to be an action designed to defeat or circumvent the Competitive Balance Tax. Unless the Club that forgave such a loan can rebut the foregoing presumption, the Club shall be required to pay into the Central Fund an amount equal to the Competitive Balance Tax(es) that the Club would have paid (based on the Tax Thresholds that were in effect when final Actu- al Club Payrolls were calculated for the Contract Year(s) in which a Competitive Balance Tax would have been paid) had the for- given loan (or portion thereof) originally been considered Salary. Page 94 F. Association's Rights (1) Actual Club Payroll Information (a) On or before opening day of the 2003 championship season, the Office of the Commissioner shall provide the Association with a list for the 2002 Contract Year of each Club's final Actual Club Pay- roll, broken down by Player, and 2002 Player Benefit Costs. (b) In each Contract Year in which the Competitive Balance Tax is operational, the Office of the Commissioner shall provide the Association with two ``Preliminary Actual Club Payroll Compila- tions,'' the first of which shall be provided within 14 days following opening day of that championship season and the second of which shall be provided within 14 days following that season's All-Star Game. Each Preliminary Actual Club Payroll Compilation shall consist of a list of each Club's Actual Club Payroll, broken down by Player, and an estimate of Player Benefit Costs for that Contract Year, as of opening day and the All-Star game, respectively. In addi- tion to the above, the Association may, from time to time, request the Office of the Commissioner to produce a Preliminary Actual Club Payroll Compilation or any portion thereof (including the Office of the Commissioner evaluation of any Uniform Player's Contract, the terms of which have been confirmed by the Associa- tion and the Office of the Commissioner) and the Office of the Com- missioner shall provide such information within 14 days of each such request, provided that the Association will not make an unrea- sonable number of requests in any Contract Year. (c) Upon the presentation of any evidence that a Player and a Club are prepared to agree to a Uniform Player's Contract, either Party to this Agreement (i.e., the Association or Office of the Com- missioner) may initiate a process whereby the Parties prepare and exchange evaluations of that prospective Contract for Competitive Balance Tax purposes. The evaluations shall be exchanged within 48 hours of the initiation of the process by either Party. (d) The Office of the Commissioner shall provide the Associa- tion with a list of the final Actual Club Payrolls, broken down by Player, and Player Benefit Costs for that ContractYear and the Com- petitive Balance Tax assessed against each Club (``final Actual Club Payroll Compilation''), if any, for the just completed championship Page 95 season on or before the December 21 following each championship season covered by this Agreement in which the Competitive Bal- ance Tax is applicable. (2) Association's Rights to Challenge (a) Information Provided Pursuant to Section F(1)(b) The Association shall have the right to question any calculation included in any information provided pursuant to Section F(1)(b) above and the Office of the Commissioner shall provide an answer to any such question within 10 days. If thereafter the Association disagrees with any calculation, it may file a challenge in the Griev- ance Procedure in Article XI at any time before the next November 30. At the request of either Party, any such Grievance shall be han- dled on an expedited basis, with documents being exchanged with- in 10 days of the filing of the Grievance, a hearing commencing within 15 days of the filing of the Grievance and the Panel issuing an Award (with opinion to follow, if necessary) no later than 15 days after the commencement of the hearing. Failure by the Association to challenge any such calculation shall not preclude the Association from challenging that calculation if contained in a final Actual Club Payroll Compilation nor shall such failure be of any relevance in such a challenge. (b) Information Provided Pursuant to Section F(1)(c) The Association shall have the right to question any calculation included in any information exchanged pursuant to Section F(1)(c) above and the Office of the Commissioner shall provide an answer to any such question within 24 hours. If thereafter the Association disagrees with the calculation put forward by the Office of the Com- missioner, it may file a challenge in the Grievance Procedure in Arti- cle XI within three business days. Any such Grievance shall be handled on an expedited basis, with documents being exchanged as soon as possible, a hearing commencing within three business days of the filing of the Grievance (or as soon thereafter as is practicable) and the Panel issuing an Award (with opinion to follow, if neces- sary) no later than three business days after the commencement of the hearing. Failure by the Association to challenge any such calcu- lation shall not preclude the Association from challenging that cal- Page 96 culation if contained in a final Actual Club Payroll Compilation, nor shall such failure be of any relevance in such a challenge. Failure by the Office of the Commissioner to raise or pursue with the Arbitra- tion Panel any disagreement with the Association concerning infor- mation exchanged pursuant to Section F(1)(c) above shall be irrelevant to any challenge by the Association to any calculation. (c) Information Provided Pursuant to Section F(1)(d) The Association may challenge any calculation included in infor- mation provided pursuant to Section F(1)(d) (the final Actual Club Payroll Compilation) by filing a Grievance pursuant to Article XI. If the Association disagrees with any calculation that affects the Com- petitive Balance Taxes assessed for that Contract Year, it shall file a Grievance within 45 days after it has received that Year's final Actu- al Club Payroll Compilation and the notice of assessed Competitive Balance Taxes (see Section B(4)(a)). Failure by the Association to challenge any calculation included in a final Actual Club Payroll Compilation shall not preclude the Association from challenging that calculation if contained in a final Actual Club Payroll Compila- tion for a later Contract Year, nor shall such failure be of any rele- vance in such a challenge. Such a challenge, however, will not result in changes to Competitive Balance Tax amounts assessed for prior Contract Years. Any Grievance challenging a final Actual Club Payroll Compila- tion shall be handled by the Parties on an expedited basis with doc- uments being exchanged within 10 days of the filing of the Grievance, a hearing commencing within 15 days of the filing of the Grievance and the Panel issuing an Award (with opinion to follow, if necessary) no later than 15 days after the commencement of the hearing. The filing of a Grievance by the Association shall not pre- clude the Office of the Commissioner from assessing and collecting the Competitive Balance Tax in accordance with Section B and using Competitive Balance Tax proceeds in accordance with Section H, unless the Chairman of the Arbitration Panel, upon application by the Association, provides otherwise. Unless the Chairman pro- vides otherwise, any adjustments to the Competitive Balance Tax assessments and distributions made pursuant to Section F above necessitated by the resolution of an Association Grievance shall be Page 97 made by the Office of the Commissioner once the Grievance is finally resolved. (d) Relationship to Grievance Procedure (i) Nothing in this Section F is intended to affect the applica- tion of the Grievance Procedure to any other complaint involving the existence or interpretation of, or compliance with, this Article XXIII or any provision therein. Moreover, unless specifically modified by this Section F, it is intended that the provisions of Article XI will govern the resolution of disputes under this Arti- cle XXIII. (ii) It is agreed that the existence of the expedited procedures in this Section F will not prohibit either Party from arguing that another dispute subject to Article XI should be heard prior to any dispute related to this Article XXIII. G. Other Undertakings (1) Neither the Parties hereto nor any Club or any Player shall enter into any agreement, Uniform Player's Contract or other trans- action, that includes any terms designed to defeat or circumvent the intention of the Parties as reflected by this Article XXIII. (2) At the time a Club and a Player enter into any Uniform Play- er's Contract, or at the time of the assignment of any Uniform Play- er's Contract, there shall be no unreported understandings or agreements of any kind between the Player and the Club. No other understandings or agreements, whether made before or after the signing of the Uniform Player's Contract or its assignment, shall be valid, recognizable or of any effect whatsoever, unless expressly set forth in a new or supplemental Uniform Player's Contract executed by the Player and the Club and complying with this Agreement and the Major League Rules. (See ``Supplemental Agreements'' para- graph of the Uniform Player's Contract.) (3) If a Club and a Player currently signatory to a Uniform Play- er's Contract desire to modify or amend their contractual relation- ship, they must enter into a new Uniform Player's Contract that covers the then current championship season or, if signed after the championship season has started, the next immediate championship Page 98 season. The Average Annual Value of such new Contract shall be increased or decreased, whichever is applicable, by the figure arrived at by subtracting the amount of Salary that has been attrib- uted under the rules of this Article XXIII to a Club in previous Con- tract Years under the Contract that is being replaced from the amount that was actually paid to the Player by a Club in those Con- tract Years. If a new Contract is signed during a championship sea- son to commence with the next championship season, the calculation called for in this paragraph (3) shall be performed at the end of the then current championship season. Except for the limited circumstances described in this paragraph (3), no Player may be signatory to more than one unexpired Uniform Player's Contract at any time. H. Uses Of Competitive Balance Tax Proceeds Competitive Balance Tax proceeds collected pursuant to Section B(4) above shall be used as follows. (1) The first $5 million of the proceeds (collected for any Con- tract Year) shall be held in reserve for the purposes described in paragraphs (5)(b)(ii), (5)(c)(ii)(C) and (5)(d)(iii) of Section E and, if the Parties agree based on experience under such Salary attribution rules, another $5 million, or such other figure to which the Parties agree, of proceeds (collected for any Contract Year) shall be held in reserve for such purposes. Any amount held in reserve pursuant to this paragraph (1), with accrued interest, shall be contributed to the Industry Growth Fund and used for the purposes set out in Article XXV if and when the Parties agree that there is no longer any need for such reserve. (2) Fifty percent (50%) of the remaining proceeds collected for each Contract Year, with accrued interest, shall be used, as the Office of the Commissioner and the Association shall agree, to fund benefits to Players active during the term of this Agreement. (3) Twenty-five percent (25%) of the remaining proceeds col- lected for each Contract Year, with accrued interest, shall be used, as the Office of the Commissioner and the Association shall agree, to fund projects and other efforts to develop baseball players in coun- tries where organized high school baseball is not played. Page 99 (4) Twenty-five percent (25%) of the remaining proceeds col- lected for each Contract Year shall be contributed to the Industry Growth Fund and, with accrued interest, used for the purposes set out in Article XXV. I. Sunset There shall be no Competitive Balance Tax in place following the 2006 championship season, and the parties expressly acknowledge and agree that the provisions of this Article XXIII (except those concerning the collection and distribution of the Competitive Balance Tax proceeds for the 2006 Contract Year) shall not survive the expiration of this Agreement. ARTICLE XXIV---The Revenue Sharing Plan A. Definitions (l) ``Financial Information Questionnaire,'' or ``FIQ,'' shall mean the questionnaire completed by each of the Major League Clubs and submitted, together with audited financial statements, on an annual basis for each revenue sharing year to the Office of the Commis- sioner. A revenue sharing year is defined as the fiscal year of the championship season that falls in that year (and shall be referred to, for any specific revenue sharing year under this Article, as ``2003,'' ``2004,'' ``2005,'' etc., or the ``2003 revenue sharing year,'' the ``2004 revenue sharing year,'' etc.). From time to time, Clubs are also required by the Office of the Commissioner to supplement the FIQ by submitting additional information in a ``Supplementary Informa- tion Questionnaire'' (``SIQ''). (2) ``Defined Gross Revenue'' shall mean the aggregate operating revenues from baseball operations received, or to be received on an accrual basis, as reported by each Club on an annual basis in the Club's FIQ. ``Baseball Operations'' shall mean all activities of a Club that generate revenue, except those wholly unrelated to the business of Major League Baseball. Baseball Operations shall include (by way of example, but not by way of limitation): (a) an activity that could be conducted by a non-Club entity but which is conducted by a Club because its affiliation or con- Page 100 -- This is the Sox. The 2003 Sox. We have a lot of fun with each other. We're a great team. We pull for each other. No. 1 through 25 on this roster contributes every night. Even if you're not in the game, we have guys on the bench helping us out, picking us up. ----Kevin Millar -- ※ 發信站: 批踢踢實業坊(ptt.cc) ◆ From: 61.223.120.70 ※ 編輯: test123 來自: 61.223.120.70 (02/11 21:31)