Originally published by DodgerBlue.com
Major League Baseball and the Players Association (MLBPA) submitted their opening proposals for a new collective bargaining agreement (CBA), but the two sides remain far apart in negotiations.
The current CBA is set to expire in Dec. 2026, and there are fears of a lengthy lockout as the two sides debate the sport’s future economics.
The sides were always going to be far apart in their opening negotiations, so that isn’t a major surprise. But there’s still a lot of work to be done, and these talks could get messy.
MLBPA CBA proposal
The MLBPA made the first proposal on May 27, led by interim executive director Bruce Meyer, which calls for significant increases to player salaries, increased revenue sharing to benefit smaller market clubs, and penalties against clubs that fail to meet a minimum payroll, changes to benefit late-blooming players when it comes to free agency, and luxury tax threshold increases.
“Today, the MLBPA presented a comprehensive set of economic proposals designed to advance the rights and benefits of players at all levels,” Meyer said in a statement. “Our goal is to preserve and improve baseball’s market system, rewarding competition on and off the field.
“Additionally, the players’ proposals provide increased revenue sharing initially guaranteeing every small market club a minimum of $240m in revenue every season. This enhanced revenue sharing includes added protections to ensure clubs prioritize winning over profiteering.
“Ultimately, our proposals are designed to build upon the incredible momentum and popularity of our sport world-wide.”
Key components of the MLBPA’s proposal include:
– Significant increases to 40-man minimums, including a Major League minimum salary of $1.5m beginning in 2027.
– An expanded pre-arbitration performance bonus program, distributing more dollars to more players.
– Expansion of salary arbitration eligibility.
– Enhanced compensation and contract guarantees for players in salary arbitration.
– Expansion of rules aimed at combating service time manipulation.
– Elimination of the qualifying offer, as well as the penalties for clubs that sign free agents.
– Increased benefits for lower revenue clubs who lose players to free agency.
– Qualified free agency for players with five or more years of service who have reached age 30.
– “Luxury Tax” threshold increases and removal of non-monetary penalties.
– A new “Competitive Integrity Tax” applying to clubs that fail to meet minimum payroll benchmarks.
– Expanded draft lottery to further disincentivize tanking.
The MLBPA also proposed a set of rules designed to increase competition:
– Increased revenue sharing that initially guarantees every small market Club a minimum of $240m in revenue every season, subject to requirements that funds be used to compete on the field. Beyond that guarantee:
1. Clubs will be able to keep more of the stadium-related revenues they generate.
2. Tens of millions in extra revenue sharing will go to low-revenue clubs that qualify for the playoffs or have a winning record.
3. Significantly increased sharing of local media revenues from high to low revenue teams.
– Curbing revenue-sharing dependence by barring excessive transfers.
– Penalties for clubs that neglect to spend revenue-sharing payments on team payroll.
– Draft picks and other benefits for low-revenue clubs active in free agency and other signings.
“We all see the momentum in our game,” executive subcommittee member Chris Bassitt said. “Amazing players and incredible fans. Attendance, viewership, interest – by any measure you want to use, our game is moving in a positive direction. We’ve put forward proposals designed to continue that trend.
“Support, incentivize, and reward clubs who are committed to competing, especially small market clubs. Compensate players fairly for the work they are doing. Preserve the rights that generations of players have fought for and grow the game all of us love.”
MLB responds with salary cap proposal
On Thursday, MLB and the owners responded with a proposal that would include a hard salary cap, according to Jesse Rogers of ESPN, making it their first proposal with a cap since 1994 when players went on strike.
With that, MLB also included a salary floor. Teams would be required to spend at least $171.2 million on payroll and no more than $245.3 million starting in 2027.
Under the proposal, presented in a meeting with union officials, each team would need to maintain a payroll of at least $171.2 million without exceeding $245.3 million, starting in 2027. That includes player benefits, just as it does under the current competitive balance tax system.
“Fans overwhelmingly support a salary cap and floor like in the other leagues because they don’t believe a $446 million spending gap from top to bottom is a fair fight,” MLB spokesperson Glen Caplin said in a statement. “Our salary cap and floor proposal levels the playing field while sharing baseball revenue with the players 50/50 as we grow the game together.”
The league also included a 50-50 revenue split between its clubs and players, with local revenues centralized and shared equally.
However, the league did not address free agency, arbitration, or any other matters in its opening proposal.
“The owners responded today with a demand for a salary cap system, something generations of players have fought against,” Meyer said in a statement following the league’s proposal. “The last time the owners made such an explicit push for a cap—over 30 years ago—it led to the longest work stoppage in MLB history.
“For generations, our members have fought against cap systems because they harm players at all levels, erode or eliminate contractual guarantees, pit player against player, lead to more work stoppages, not less, and get worse for players over time. Caps don’t lower ticket prices for fans, eliminate tanking or ensure teams are run with equal competence. They suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity.
“Baseball is experiencing unprecedented momentum and owners are enjoying record viewership, revenues and franchise values. Billionaire owners are not seeking to cap their profits or asset values, only player salaries.
“This isn’t out of generosity or a desire to protect the game’s well-being. It’s a play to control costs, increase profits and maximize franchise values – all at the expense of players past, present and future.
“We’ll continue our review of the owners’ proposal and stand ready to negotiate system improvements that benefit players and fans alike.”
MLB remains the only major North American sport without a hard salary cap. Under MLB’s new proposal, eight teams would need to decrease their payroll, while 12 would need to increase theirs.
When MLB last proposed a cap in 1994, it led to a nearly eight-month players’ strike and forced the cancellation of the World Series. MLB ultimately withdrew its cap proposal under pressure from the National Labor Relations Board.
MLB previously had a lockout that lasted roughly three months and delayed the start of the 2022 regular season. It would not be surprising if this one lasts longer, given the game’s growing revenue and competitive concerns.
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