The worst part of this is the $20,000 cap on undrafted players. There is zero reason other than saving money from kids would could use it. At least at $125K a kid has enough to live on for a few years while pursuing their dream.
This will force anyone not drafted in the first 5 rounds to go back to school. So college seniors will take playing time and scholarships from younger players. Next year's draft will be loaded, but also truncated to 20 rounds potentially. No idea if the $20K undrafted would apply in 2021 too.
The blowback on this should be severe in the media, but I fear people will ignore it and just rationalize that baseball had to do it.