MLB’s Next Labor Battle Has Begun: Salary Cap, Revenue Sharing, Expansion, & More

[Cody Christie]

Image courtesy of © Junfu Han / USA TODAY NETWORK via Imagn Images

Major League Baseball’s next labor fight is officially underway. According to multiple reports, representatives from MLB and the MLB Players Association met Tuesday in New York to begin negotiations on the next Collective Bargaining Agreement. While serious proposal exchanges are still weeks away, the opening meetings traditionally serve as an opportunity for both sides to present their view of the current state of the game and establish the groundwork for the months ahead.

The current CBA expires at 11:59 p.m. ET on December 1. If a new agreement is not reached by then, another lockout appears likely. Owners locked out players during the 2021-2022 offseason in what became baseball’s first work stoppage since the devastating 1994-1995 strike. Although regular-season games were ultimately preserved, spring training was delayed, and the sport spent months overshadowed by labor tension.

This time around, the stakes feel even larger. The league is approaching negotiations at a time when franchise values continue to rise, national television contracts are nearing expiration, and competitive balance remains one of the sport’s most debated topics. Meanwhile, the union enters talks with new leadership after longtime MLBPA executive director Tony Clark stepped down earlier this year following an internal investigation. Bruce Meyer, the union’s longtime lead negotiator, has stepped into the interim executive director role and is expected to guide negotiations moving forward.

“We don't expect anything to change in terms of bargaining,” Meyer said earlier this year. “We've been preparing for bargaining for years. Players have been preparing. Players know what's coming.”

As always, the biggest conversations will revolve around money, power, and the future structure of the sport. Here are the major issues expected to be at the center of negotiations.

The Salary Cap Debate Is Back Again

The issue expected to dominate negotiations is one baseball has fought over for generations: a salary cap.

MLB owners are once again expected to push for a payroll system that limits spending. The league has argued for years that a cap could improve competitive balance by preventing large market clubs from dramatically outspending smaller organizations.

Players see it very differently. The MLBPA has historically viewed a salary cap as a direct restriction on earning potential and has fiercely resisted it in every negotiation cycle. Baseball currently stands as the only major North American professional sports league without a formal salary cap structure, something the union considers a major victory.

At its core, the fight is about revenue distribution. Baseball generates enormous amounts of money, and both sides are battling over how that money is divided. While owners often frame a salary cap as a competitive balance issue, the union believes such a system would primarily suppress salaries while further increasing franchise profitability.

Even if the union were willing to discuss a cap, the complexity of implementing one creates another layer of conflict. Questions immediately emerge about what qualifies as baseball-related revenue, how large the cap would be, whether there would be a mandatory payroll floor, and what percentage of revenue players would ultimately receive.

Simply agreeing to discuss a cap would only mark the start of the real negotiation. Because of that, many around the sport already view this as the defining issue that could determine whether baseball experiences another work stoppage before the 2027 season.

Revenue Sharing Could See Significant Changes

Another major point of contention will be MLB’s revenue-sharing system. Revenue sharing is designed to help smaller-market organizations remain competitive by redistributing funds from higher-revenue clubs. However, critics have long argued that some teams receive revenue-sharing funds without reinvesting those dollars into payroll or player development.

If owners continue pushing for greater payroll restrictions, the union will likely counter by demanding stronger incentives for clubs to spend competitively. This could lead to discussions about payroll minimums or changes to how revenue-sharing funds are distributed and monitored. Even without a salary cap agreement, many around the sport expect the current system to undergo meaningful revisions during this negotiation cycle.

For smaller market clubs, these conversations matter tremendously. Changes to revenue sharing could affect payroll flexibility, free-agent strategies, and long-term roster construction across the league.

Postseason Expansion Remains on the Table

Baseball’s postseason field expanded to 12 teams during the last CBA negotiations, but further expansion is already being discussed. Owners have strong financial incentives to add more playoff games because postseason television inventory generates significant revenue. More playoff teams also keep their fan bases engaged throughout the season.

Players, however, may seek concessions in exchange for agreeing to another expansion. Concerns about preserving the importance of the regular season will likely remain part of the conversation.

Some fans already believe the current format waters down the grind of a 162-game season. Others enjoy the added drama and broader playoff races that expanded formats create. Whether the postseason grows again may ultimately depend on what the union can gain elsewhere in negotiations.

The International Draft Debate Continues

The idea of an international draft has lingered over baseball for years and is expected to resurface again during these talks. Currently, international amateur players primarily sign through a bonus pool system that has often drawn criticism regarding corruption, early verbal agreements, and uneven scouting practices.

Owners have frequently supported an international draft to create a more structured and transparent signing process. The union, however, has historically been cautious about how such a system could impact player freedom and earning potential for young international prospects.

This issue nearly became part of the last CBA negotiations before the sides ultimately failed to reach an agreement. Given baseball’s growing international influence, particularly in countries like the Dominican Republic and Venezuela, the topic is unlikely to disappear anytime soon.

Expansion and Realignment Could Shape Baseball’s Future

Commissioner Rob Manfred has openly stated that he hopes to begin the expansion process before his contract expires in January 2029. That timeline makes these negotiations especially important.

Expansion discussions naturally bring additional questions involving divisional realignment, scheduling, television rights, and revenue distribution. Potential expansion cities frequently connected to MLB include Nashville, Montreal, Portland, and Raleigh. Adding two new franchises would dramatically reshape the sport’s geographic footprint and could trigger significant realignment changes across both leagues.

Expansion fees would also provide owners with another substantial financial windfall, further emphasizing how closely these negotiations are tied to the sport’s long-term economic future.

A Long Road Ahead

Although negotiations have officially begun, baseball is still in the early stages of what could become a lengthy and contentious process.

The two sides have months before the December 1 expiration deadline, and both MLB and the MLBPA understand the damage another prolonged work stoppage could cause. National television deals expire in 2028, making uninterrupted seasons critically important for the league’s future business interests.

Still, history shows that labor peace in baseball is never simple. The salary cap debate alone has the potential to create enormous friction, and the additional discussions surrounding revenue sharing, postseason expansion, international amateur talent, and league expansion only add more complexity to the process.

For now, the meetings in New York simply mark the beginning of another massive negotiation that could shape the direction of Major League Baseball for the next decade.

What will be the biggest issue in the next CBA? Leave a comment and start the discussion.

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