5:21 PM ET

According to sources, the Major League Baseball Players' Association has countered MLB's original proposal for an international draft with one of its own, one that would allocate more money to international players and address pre-draft requirements that the union considers to be discrimination.

The two sides have until July 25 to agree on an international draft, which has been sought by MLB for the last 20 years. If the two sides agree to a version of an international draft, MLB would get rid of the qualifying offer system, which limits the market for a few mid- to upper-tier free agents each year. Status quo is maintained for the international market and the qualification offer system.

The league was displeased by the union's demands, according to a source with knowledge of the situation. It was the first time that the MLBPA has agreed to any form of a draft for international players, and it was a huge step in the right direction.

This week, the league's proposal from March remained on the table, with $5.51 million going to the No. 1 overall pick and a total of $181 million in guaranteed spending for the top 600 international players. According to sources, the Union countered with a 20-round draft that would allocate at least $260 million to the top 600 international players. The union and the league disagreed on the amount of money that could be spent on rookies.

Money will be a major point of contention in the negotiation over an international draft, as it was during the recent 99-day labour dispute that nearly ended the season. At this point the league doesn't seem inclined to allocate more dollars and is also concerned that the pre-arranged deals that have run amuck in the international market because teams could theoretically promise players more money in later rounds.

The Union wants to move the international draft up to September of 2023, but the signing age is the same.

The Rule 4 Draft, which takes place every summer and involves amateur players from the U.S., Canada and Puerto Rico, is too small for the Union. It believes the league's logistical requirements for draft-eligible international players, specifically with regard to drug testing and the disclosure of medical information, is more stringent than those in the Rule 4 draft.

According to a source, the Union has proposed ways to allocate more resources towards fighting corruption that has long plagued the international market. July 25 is a hard deadline, but both sides are able to negotiate an extension if necessary.

At the start of free agency, a pending free agent can be offered a one-year contract worth the mean salary of MLB's 125 highest-paid players. The original team gets a pick from the signing team if the player declines.

Ten years ago, in an effort to shrink the disparity in international spending, MLB introduced a system that assigned international bonus pools to each team. According to people familiar with the international market, using those caps gave teams the ability to scout and agree with players as young as 12 and 13 years old.

The players who are promised to those teams are not allowed to showcase for other teams before their official signing date. Many industry sources have spoken out against the issue of teams threatening to reduce a player's bonus before signing them. According to people with knowledge of the dynamics, those who do sign must pay their trainers a significant portion of their bonuses, up to 50%, and are at times funneled to certain agencies who have pre- arranged agreements with those trainers.

A source said that the league's current draft proposal was first presented in July of 2021. Latin players bristled at the idea of tying the elimination of the Qualifying Offer System to the implementation of an international draft. MLB gave the MLBPA three options: maintain the status quo, accept the international draft in exchange for the removal of the qualifying offer system, or take more time to think it over.

The Union decided on the third option, but the two sides are far apart on a major issue.