MLB Draft Proposal Could Deal Major Hit to the Minor Leagues

Major League Baseball and the players union continued collective bargaining discussions on Thursday, where the league presented a proposal described as especially bad for minor league baseball. The reported plan would significantly alter the draft and overall amateur system if adopted into a final agreement.

According to ESPN’s Jeff Passan, the proposal would reduce the Major League Baseball Draft from 20 rounds to 12. It would also lower the amateur signing bonus pool to $200 million, which amounts to nearly half of the current total. The plan further includes banning prep and high school players from the draft.

In addition, the league suggested giving teams the option to trade all draft picks and to implement an international draft. Minimum age requirements were also outlined: 20 years old for the domestic draft and 18 years old for the international draft.

As Passan reported, teams can currently sign international free agents at age 16. The updated structure would therefore raise that minimum by two years, changing how organizations recruit young international players.

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The proposal also reduces the draft lottery, decreasing the number of picks from six to four. It eliminates competitive balance picks that are currently given to small-market and lower-revenue teams as part of the existing system.

Major League Baseball described its approach as a modernization effort prompted by new college opportunities through NIL deals. In an official statement, the league said, “By creating a draft system centered around college-aged players and making most college players eligible one year earlier, more players will benefit from both a college education and an elite development environment while reaching professional baseball — and ultimately the major leagues — more quickly. We believe these changes will strengthen college baseball and deepen fans’ connection to the next generation of major league stars. We look forward to working with the MLBPA throughout the bargaining process to modernize the domestic amateur system in a way that benefits players, clubs and fans.”

However, the conversation around the changes includes concerns that ownership may view the proposal as a way to cut player development costs. The report suggests the system could lead to additional reductions in minor league teams or even the removal of entire levels of organized baseball.

If fewer players are eligible for selection and fewer rounds exist, the need for as many developmental affiliates could decline. This echoes prior structural moves by Major League Baseball, which has already eliminated dozens of minor league teams.

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The league’s stated vision positions college baseball as a primary development platform. In this model, college programs using NIL deals could effectively assume part of the financial investment traditionally made by major league organizations into young players.

For example, the league noted that NIL compensation for collegiate athletes allows them to develop before turning professional. As described in the proposal’s framework, if players are earning NIL money at ages 18 or 19, big league teams would spend less on early player development.

The financial efficiency appears important to owners, who are seeking smaller financial outlays while getting faster returns on drafted players. The potential implications for developmental depth across the minors remain a central concern raised by critics of the plan.

Negotiations continue as the current collective bargaining agreement approaches its expiration on Dec. 1. Concerns have been raised about the widening gap between ownership and players that could lead to missed games.

Each side’s stance indicates a challenging path ahead, with language suggesting that both parties expect a difficult and exhausting negotiation process. The uncertainty extends into the offseason as both sides remain committed to their bargaining goals.

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