Author Topic: The Next CBA (2027 and beyond)  (Read 794 times)

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Offline imref

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The Next CBA (2027 and beyond)
« on: April 10, 2025, 08:25:51 am »
Salary cap (and floor)? https://www.cnbc.com/2025/04/10/mlb-weighs-salary-cap-potential-lockout-looms.html

Quote
MLB owners as well as Commissioner Rob Manfred’s office have begun privately contemplating what a new league economic structure could look like as the league heads toward a new Collective Bargaining Agreement with players, according to people familiar with the matter. The league’s current CBA expires on Dec. 1, 2026.

MLB officials have discussed adding both a salary cap and a salary floor, said the people, who asked not to be named because the discussions are private. The Major League Baseball Players Association, however, has long been against a salary cap, and the group says its position hasn’t changed.

The result is a potential lockout in December of next year when the current CBA expires — one that appears increasingly likely given the opposing positions of both sides.

If MLB owners are ultimately successful in forcing through a salary cap, it would end decades of limitless spending that’s led to increasingly disproportionate spending between teams in the league. Critics of the format say the variability results in a competitive imbalance that reduces fan enjoyment and retention of star players in small markets.

The remaining three major sports leagues in the U.S. — the National Football League, the National Hockey League and the National Basketball Association — all have salary caps. The NHL adopted its cap in 2005. The NFL introduced a cap in 1994, and the NBA has had one since 1984.

While MLB maintains a luxury tax and revenue sharing, there’s no formal limit on what teams can spend on a roster.

Manfred addressed the issue of a salary cap last week on FS1′s “The Herd.”

“We do hear a lot about it from fans, particularly in smaller markets,” said Manfred. “But the reality is we’re two years away from the end of the [bargaining] agreement. We’re just not in a position where we are talking about or have made decisions about what’s ahead in the next round of bargaining. I think that a lot of water is going to go over the dam before we need to deal with that issue.”

Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #1 on: April 10, 2025, 09:26:26 am »
The luxury tax can be beefed up to be a cap in all but name (see the NBA second apron) which would let the players association save face, but how do you get the teams that are both cheap and low revenue to agree to a floor? Maybe MLB is happy that LA and NYC can perpetually field great teams, but this can’t be great for growing fan bases in other markets

Offline nfotiu

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Re: The Next CBA (2027 and beyond)
« Reply #2 on: April 10, 2025, 09:53:55 am »
It seems like MLB as a business has a lot of problems to solve, and it's hard to see everyone getting on board.

I never know how much to trust Forbes valuations, but I seem to remember their annual charts fairly recently would routinely show almost all teams making a profit.  https://www.forbes.com/sites/justinteitelbaum/2025/03/26/baseballs-most-valuable-teams-2025/

Now there are 11 teams operating at a loss, and the low spending bottom feeders all show significant profits.

The Mets and Dodgers have to irritate a lot of owners.    The Mets seem to be ok moving towards a half billion/year operating loss, while the Dodgers get 200=250 million more than most anyone else in TV revenue and even have a special cap where only the first 100 million is subject to revenue sharing.

Teams like the Red Sox and Yankees have always historically spent a lot, but they tried to avoid going into a loss.

It seems that in other sports, the long lockouts leading to a salary cap always came once a critical mass of teams were losing money (often a result of trying to keep up with out of control spending).  It's easy to endure a long lockout if they lose less money during a stoppage than by playing.

Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #3 on: April 10, 2025, 11:05:24 am »
Mets aside, a lot of the operating losses are from teams where the owners also own the broadcaster. I’d be curious to see how much of the losses are accounting gimmicks to lower revenue for sharing purposes and how much are actual losses

Offline imref

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Re: The Next CBA (2027 and beyond)
« Reply #4 on: January 16, 2026, 10:51:18 am »
FWIW, I prompted ChatGPT to predict what happens with negotiations, and to provide a deal that would be acceptable to both sides. It predicts a lockout but one that ends rather quickly, before the loss of the entire season, noting that both players and owners have strong incentive to reach an agreement.

Deal highlights:
- Stronger luxury tax and tax aprons that act as a soft-cap (similar to the NBA)
- Salary floor requiring minimum payroll, with revenue sharing, with rules requiring that revenue sharing goes to payroll and player benefits
- Minimal changes to existing service time rules
- Some potential changes to lottery and international draft rules, but no details
- Improved health and safety protocols, including long-term benefits and retirement, as well as mental health resources

Terms of a plausible CBA:
Quote
Economic Structure
✅ Luxury tax with steeper penalties and additional thresholds
✅ A salary floor tied to revenue sharing spending rules
✅ No hard salary cap, but cap-like payroll management mechanisms (e.g., tax apron restrictions)
✅ Enhanced revenue sharing with accountability requirements

Player Compensation and Mobility
✅ Incremental increases in minimum salaries and pre-arbitration bonus pools
✅ Pilot or expanded draft lottery and modified international draft/bonus pools
✅ Potential tweaks to service time and arbitration eligibility (but not radical change)

Benefits & Protections
✅ Improved health, safety, and long-term player welfare benefits
✅ Enhanced pension/retirement structures
✅ Expanded rules around player development and agent access

Growth Initiatives
✅ Expanded playoffs revenue sharing (player bonuses tied to TV revenue)
✅ Tech innovations and fan experience considerations

It notes that ownership insistence on a hard cap would derail any deal.

Offline Slateman

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Re: The Next CBA (2027 and beyond)
« Reply #5 on: January 16, 2026, 10:56:35 am »
Luxury tax with steeper penalties only further differentiates between the have and the have nots. While every team could easily handle 175-200 million in payroll, only a handful of teams can do what the Dodgers and Mets have done. A salary floor without a cap doesn't improve parity.

Online JCA-CrystalCity

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Re: The Next CBA (2027 and beyond)
« Reply #6 on: January 16, 2026, 12:44:12 pm »
Luxury tax with steeper penalties only further differentiates between the have and the have nots. While every team could easily handle 175-200 million in payroll, only a handful of teams can do what the Dodgers and Mets have done. A salary floor without a cap doesn't improve parity.
the nba system functions pretty much like a cap. you can only  afford  to go into the  second apron for a couple of years.The Celtics are decent example. It functions to limit you to 2 max players most years but allows you to bring in a 3rd or 4th one to go for it over  a year or two.

Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #7 on: January 16, 2026, 05:16:59 pm »
Teams that spend, but don’t spend huge may support that system.  Neither poverty teams that are incredibly profitable not spending or the big spenders will want a cap/floor.

Offline varoadking

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Re: The Next CBA (2027 and beyond)
« Reply #8 on: January 19, 2026, 02:08:19 pm »
Teams that spend, but don’t spend huge may support that system.  Neither poverty teams that are incredibly profitable not spending or the big spenders will want a cap/floor.

I hope there is a protracted strike followed by a lockout...all year if need be...even more.  This insane economic structure WILL end at some point...so the sooner the better.

I'm OK with years of replacement level players to bring established veterans to their senses.  Not like the Nats have much more than that at this point anyway...




Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #9 on: January 19, 2026, 03:29:30 pm »
The real fight will be between teams. Don’t think the pirates or marlins want a floor? They print money thanks to revenue sharing.

Offline imref

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Re: The Next CBA (2027 and beyond)
« Reply #10 on: January 19, 2026, 03:31:10 pm »
The real fight will be between teams. Don’t think the pirates or marlins want a floor? They print money thanks to revenue sharing.

It certainly will be interesting. Obviously the big spenders aren't going to want a cap either.

Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #11 on: January 19, 2026, 03:49:58 pm »
It certainly will be interesting. Obviously the big spenders aren't going to want a cap either.

In favor will be the Red Sox, Cardinals, Braves, maybe Phillies. Basically the teams that care about winning and already spend, but can’t afford to or won’t go toe to toe with the Dodgers or Yankees. Even there, the amount of revenue sharing required to make a floor viable for the poverty franchises might be enough to get them to balk

Offline imref

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Re: The Next CBA (2027 and beyond)
« Reply #12 on: January 20, 2026, 12:01:24 pm »
https://sports.yahoo.com/articles/los-angeles-dodgers-washington-nationals-172500550.html

Quote
Kyler Tucker, the top free agent on the market, just signed with the Los Angeles Dodgers. He signed a 4-year deal that pays him $60 million a year. Just like last offseason, the defending champs are pretty much buying an All-Star team. As much as some people do not want to admit it, the MLB has a Dodgers problem. However, the Washington Nationals are also a problem for the MLB.

With the CBA expiring after this season, baseball has a lot of problems to resolve. They have to solve the Dodgers problem and the Nationals problem. One team is a financial super power with unprecedented access to cash, while the other team refuses to give out free agent contracts worth more than $15 million.

Online JCA-CrystalCity

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Re: The Next CBA (2027 and beyond)
« Reply #13 on: January 20, 2026, 12:44:04 pm »
I thought saw this on Federal Baseball. Msy have been quoting the article.

Yes, the Nats are a problem. What's particularly galling and odd is they are a revenue sharing payers, so the minimal spending grievance doesn't apply to them. That's forced the As and the Pirates to spend a bit

Offline Slateman

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Re: The Next CBA (2027 and beyond)
« Reply #14 on: January 20, 2026, 01:08:55 pm »
the nba system functions pretty much like a cap. you can only  afford  to go into the  second apron for a couple of years.The Celtics are decent example. It functions to limit you to 2 max players most years but allows you to bring in a 3rd or 4th one to go for it over  a year or two.
What do you mean by "can only afford?"

Like, does the NBA force them to push their salary cap lower, or do they just keep increasing the taxes? Because if they just increase the taxes, that pretty much does nothing to stop the Dodgers.

Offline Slateman

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Re: The Next CBA (2027 and beyond)
« Reply #15 on: January 20, 2026, 01:10:53 pm »
Another question is what does a cap/floor do to the minor league system? Does it get expanded since teams will have more money to spend? Will players be kept in the minors longer, so as to avoid breaching into the window of MLB eligibity?

Online JCA-CrystalCity

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Re: The Next CBA (2027 and beyond)
« Reply #16 on: January 20, 2026, 02:58:59 pm »
What do you mean by "can only afford?"

Like, does the NBA force them to push their salary cap lower, or do they just keep increasing the taxes? Because if they just increase the taxes, that pretty much does nothing to stop the Dodgers.
There  are penalties beyond just very high dollars, such as prohibiting certain types of trades, draft pick forfeits (remember, it's much more significant to lose a 1st round pick in the NBA). Can't put cash into a trade, lose a mid-level exception for player acquisition, etc...

This article goes into detail
https://sports.yahoo.com/article/explaining-second-apron-key-financial-083531560.html?guccounter=1

It's most of the reason the Celtics dealt Jrue Holliday and Kristaps Porzingis, then did not try to re-sign Al Horford or Luke Kornet (well, having Neemas Quetta helped  on the latter). They kept added Jrue  and KP to their core, won a championship, competed for another, but when Tatum was hurt, they  didn't think they could keep repeating 2d apron penalties for a less competitive season without Tatum and then another when he would  be back.

IDK similar MLB penalties. I suppose losing the ability to sign contracts longer than 1 year for arb eligible guys, prohibiting sending  or receiving cash in a deal (to make deals more difficult), perhaps granting free agency a year earlier for your system guys, maybe blocking a team from signing KBO/NPB players, ... Maybe prohibiting new multi-year contracts?

Basically, it's not just a $ penalty. It's a set of penalties that gum up talent acquisition and the ability to plug a hole mid-season. Your bullpen stinks? Sorry, but no deal for a non-contender's closer.

Your thoughts welcome.

Offline HalfSmokes

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Re: The Next CBA (2027 and beyond)
« Reply #17 on: January 20, 2026, 03:15:43 pm »
Another question is what does a cap/floor do to the minor league system? Does it get expanded since teams will have more money to spend? Will players be kept in the minors longer, so as to avoid breaching into the window of MLB eligibity?

Some teams will have more money, some will have a lot less

Offline imref

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Re: The Next CBA (2027 and beyond)
« Reply #18 on: January 22, 2026, 10:24:48 am »
Per this, high school draft eligibility could end in the new CBA.

https://overslotbaseball.com/articles/mlb-draft-high-school-eligibility/

Offline rileyn

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Re: The Next CBA (2027 and beyond)
« Reply #19 on: January 23, 2026, 06:48:29 am »
Another question is what does a cap/floor do to the minor league system? Does it get expanded since teams will have more money to spend? Will players be kept in the minors longer, so as to avoid breaching into the window of MLB eligibity?
Will there be a minor league season in '27 if there is an MLB lockout?

Offline Slateman

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Re: The Next CBA (2027 and beyond)
« Reply #20 on: January 23, 2026, 07:21:46 am »
Will there be a minor league season in '27 if there is an MLB lockout?
Great question. No idea.

Online blue911

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Re: The Next CBA (2027 and beyond)
« Reply #21 on: January 23, 2026, 07:38:09 am »
Will there be a minor league season in '27 if there is an MLB lockout?

They’re represented by the MLBPA.

Offline varoadking

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Re: The Next CBA (2027 and beyond)
« Reply #22 on: January 23, 2026, 08:28:03 am »
Per this, high school draft eligibility could end in the new CBA.

https://overslotbaseball.com/articles/mlb-draft-high-school-eligibility/

Wonder what happens to International signings of even younger kids?

Online blue911

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Re: The Next CBA (2027 and beyond)
« Reply #23 on: January 23, 2026, 08:31:48 am »
Wonder what happens to International signings of even younger kids?

Scott Boras starts his own development league and sells prospects to MLB.

Offline varoadking

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Re: The Next CBA (2027 and beyond)
« Reply #24 on: January 23, 2026, 09:31:36 am »
Scott Boras starts his own development league and sells prospects to MLB.

Boras Island?