MLB, players reach labor agreement

Major League Baseball and its players association were prepared to go extra innings but instead agreed to a new collective bargaining agreement Wednesday, with the five-year deal completed only hours before the old one was to expire.

MLB announced that the sides reached a tentative agreement, pending ratification by both management and the players.

The sides met at a hotel outside Dallas where the MLBPA held its annual executive board meeting.

The old agreement was to expire at 12:01 a.m. ET on Thursday, but a lockout wasn't expected because both sides were keen to continue negotiating.

Major League Baseball hasn't endured a work stoppage in more than two decades, since a strike that lasted 232 days wiped out the 1994 World Series and lasted until March 31, 1995. That run of labor bliss continued after the sides bargained virtually round the clock over the past two days.

The final hurdle was reportedly the luxury-tax threshold, which jumps to $195 million from $189 million and will gradually increase. Teams that spend way over the threshold could see their tax rate jump to as high as 90 percent.

Also, clubs that sign a premium free agent will not have to yield a first-round draft pick to the team that lost the player. Clubs that exceed the luxury-tax threshold, though, would lose a pick later in the draft.

Other key issues, with details to be announced in the coming days or weeks:

--Baseball's domestic-violence policy is expected to change.

--Players who violate the Joint Drug Agreement are expected to face tougher penalties.

--Future schedules could start earlier to allow teams more days off during the regular season

--Playing more day games on getaway days will be discussed.

--There is a possibility of games being played outside North America during the regular season. Commissioner Rob Manfred previously said he wants games in London.