What the lockout means for the San Francisco Giants
With holes to fill in the rotation and in their lineup, the Giants have plenty of work left to do this offseason to position their roster to contend for a second consecutive National League West title.
As of 8:59 p.m. on Wednesday, all of that work has been paused.
Major League Baseball’s collective bargaining agreement has expired, setting the stage for a work stoppage that freezes the vast majority of offseason activity for front offices.
MLB owners and the Players Association could come to an agreement on a new collective bargaining agreement at any time, but it’s widely expected that negotiations will drag out into 2022 and significantly affect how teams approach their roster-building process moving forward.
What does a lockout and the negotiation of a new CBA mean for the Giants? Here’s what we know.
All major league activity freezes
Think the Giants are close to signing a free-agent pitcher or a new slugger? Think again.
During a lockout, teams cannot make major league free agent signings or trades involving players on their 40-man rosters. Players such as Tommy La Stella (Achilles) who are rehabbing injuries are also not permitted to work out or receive treatment at team facilities.
One area the Giants can continue to focus on is building organizational depth as clubs are allowed to sign players to minor league free agent contracts during a lockout. Key contributors to the 2021 club such as Darin Ruf, Dominic Leone and Donovan Solano all initially joined the Giants on minor league contracts.
The designated hitter could be coming to the National League
Both the owners and players are likely to agree to a new CBA that implements the designated hitter in the National League. The days of pitchers hitting are probably behind us, and that’s important for executives to consider as they focus on postlockout acquisitions.
If the DH is coming to the NL, it’s possible the Giants will be more aggressive in their pursuit of free agent hitters such as Nick Castellanos who aren’t great fits defensively but do represent upgrades to the team’s lineup. The Giants wouldn’t be able to pursue a contract with a player such as Castellanos during the lockout, but they may be more open to signing him once there’s certainty surrounding the future of the DH.
A salary floor and CBT thresholds could impact decisions
One of the possible outcomes of a new collective bargaining agreement is the implementation of a salary floor, which would require teams to hit a minimum payroll threshold each year.
Good news Giants fans: This should never be a topic of conversation surrounding your favorite team.
Another possible outcome is the continuation of the
competitive balance tax (CBT), or a luxury tax, which requires franchises to pay a tax on all dollars spent over a certain threshold. If the CBT remains a factor moving forward, there’s a good chance the Giants will be fielding future rosters that approach or surpass the threshold.
The Giants weren’t close to bumping up against the $210 million CBT threshold in 2021, but given their desire to remain contenders on an annual basis, it wouldn’t come as a surprise to see future roster decisions influenced by the tax. That doesn’t mean the Giants will always have a payroll under the tax threshold, but it does mean the CBT could be a prominent topic of conversation for years to come.
The bottom line
Unless negotiations for a new CBA drag on into February and delay the start of spring training, it’s unlikely the casual fan will be impacted by MLB’S lockout.
The Giants have been in touch with a wide variety of free agents and potential trade partners and when the time comes for activity to start up again, they’ll have a much better idea of how they’d like to allocate their resources to ensure success can be sustainable.
Having a firm grasp on new rules, new payroll expectations and even the potential expansion of the playoff field will give the Giants and all other teams a clear direction moving forward, so it’s unlikely San Francisco’s offseason agenda will change in a significant way during the lockout.