Among the changes agreed to in the new labor deal, according to sources: The luxury-tax threshold will jump from $189 million to $195 million initially, then gradually increase to $210 million in the final year of the agreement. Teams that exceed the threshold will pay similar tax rates to the current deal unless they go way over the threshold, in which case their tax rate could jump to as high as 90 percent. Teams signing a premium free agent will still be subject to draft-pick compensation. Teams over the luxury tax threshold lose a 2nd- & 5th-round pick. Teams under the threshold lose a 3rd-round pick. Instead of an international draft, each team will have a hard cap on total bonuses it can give to foreign-born players. Rosters will remain at 25 players before Sept. 1 and remain at 40 after Sept. 1. The labor agreement is a five-year deal, covering the 2017-2021 seasons.
