Owners respond to MLBPA’s first CBA proposal as possible lockout tied to salary cap debate looms originally appeared on The Sporting News.
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The early stages of what’s expected to become a lengthy MLB lockout are under way.
On Wednesday, ESPN’s Jeff Passan reported that the MLBPA made its first official proposal on a new CBA to the league, which “maintains the game’s current financial structure with significant changes,” including an increased minimum player salary.
But in response, an MLB spokesperson reportedly said that the MLBPA’s proposal does “not address and in fact exacerbates] the competitive balance problem,” a clear indication that the signs have a lot of work to be done in the coming months.
Here’s a look at the early back-and-forth exchanges in MLB’s labor dispute as the possibility of a lockout looms after the 2026 season.
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Owners respond to MLBPA’s first CBA proposal
The most concrete steps yet of the MLB labor dispute arrived on Wednesday, with the MLBPA sharing its first official proposal for the laws of a new Collective Bargaining Agreement.
According to Passan, the players’ proposal maintained the current financial structure of MLB, but with major changes. Overall, the proposals aimed to increase money for lower-revenue teams, while also forcing those lower-revenue teams to invest financially in their big-league clubs.
Below are the proposed changes from the players, according to Passan:
- A “competitive-integrity tax” for any team that does not spend $150 million
- Increased players’ minimum salary from $780,000 to $1.5 million
- Increase in base CBT threshold from $244M to $300M
- Changes to the revenue-sharing system, which would distribute more money from local television revenue but decrease the amount distributed from in-stadium revenue, “to incentivize teams that win and draw larger crowds”
- Free agency for players who are 30 at 5+ years of service (Currently six years)
- Teams that received hypothetical revenue sharing would forfeit portions of their checks depending on payroll levels, while recipients that win receive more money.
- Pre-arbitration bonus pool increase from $50 million to $180 million
- $3 million minimum tender in arbitration
- Arbitration super 2s jump from 22% of players to 44%
An official first proposal from MLB owners is expected on Thursday, according to Passan, with a proposed salary cap heavily anticipated.
However, on Wednesday, MLB spokesperson Glen Caplin also provided The Athletic’s Evan Drellich with a statement about the first MLBPA proposal. In the statement, Caplin said that under the proposed MLBPA system, the Dodgers would pay less than they do now in luxury tax payments, allowing them to spend even more money on players.
“We understand their proposals are designed to benefit players. Unfortunately, they do not address and in fact exacerbate the competitive balance problem our fans are telling us we must address,” the statement read. “The MLBPA’s proposal would reduce the amount transferred to lower-revenue clubs, weaken the Competitive Balance Tax, and lead to even more payroll disparity than exists today.”
Statement from MLB spokesperson Glen Caplin following the union’s opening proposal:
“We understand their proposals are designed to benefit players. Unfortunately, they do not address and in fact exacerbate the competitive balance problem our fans are telling us we must address.” pic.twitter.com/cTu6hVa7a3
— Evan Drellich (@EvanDrellich) May 27, 2026
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When could a possible MLB labor stoppage begin?
The current MLB Collective Bargaining Agreement officially expires on Dec. 1, 2026. That is the earliest that a potential lockout could begin.
Considering the wide gap in stances between MLB owners and players over topics like a potential salary cap, there is a near-industry-wide expectation that the lockout could, at the very least, last deep into when spring training would typically be played, if not the 2027 regular season.
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What is a lockout?
A lockout is when professional sports leagues are shut down by owners due to the lack of an agreement with players and their union over a collective bargaining agreement (CBA).
During a lockout, team facilities and activities can be stopped altogether, which can mean a lack of pay and missed games, depending on the length. MLB has had lockouts before; the most recent one was in 2021-22, which lasted from Dec. 2, 2021, until Mar. 10, 2022, with the biggest labor issues regarding compensation for young players and limits on tanking.
The 2021-22 MLB lockout marked the first MLB work stoppage since the 1994–95 strike — initiated by players, rather than a lockout — which is when the entire postseason and World Series were canceled.