Top officials from Major League Baseball and the MLB Players Association met Tuesday to officially open up collective bargaining talks a little more than six months before the expiration of the game's labor deal, sources told ESPN.
In a face-to-face meeting in New York, each side offered opening presentations, sources said, though no proposals were made. MLB intends to pursue a salary cap system, a financial structure that players staunchly oppose. The current deal, which came after a 99-day lockout by the league that threatened the beginning of the 2022 season, expires Dec. 1. If there is no agreement by the time the deal lapses, MLB is expected to again lock out the players, causing a work stoppage that could jeopardize games in the 2027 season.
During the opening presentations, sources said, the sides outlined their views on the game, noting challenges they see and opportunities to use labor negotiations as a tool to move it forward. While MLB is on pace to generate record revenues and has seen national television ratings soar this year, owners continue to sing the virtues of a salary cap, a mechanism the MLBPA has resisted for decades.
The expected lockout has drawn the attention of Congress, according to multiple sources familiar with discussions on Capitol Hill. Should a lockout last into the spring -- negotiations last time began in earnest with the threat of missed games -- intervention from politicians, including President Trump, could be in play. Three-time All-Star Mark Teixeira, a former member of the MLBPA's executive subcommittee, is expected to win the November election to represent the 21st district in Texas and would likely play a central role in any House hearings.
The league and union declined comment when reached by ESPN.
During meetings with players throughout the spring, MLBPA executive director Bruce Meyer -- who was elevated to the position after the resignation of Tony Clark, one of a handful of recent changes in senior leadership at the union -- pushed back vociferously on the idea of a cap, a sentiment shared by top player leaders.
With MLB expected to formally propose a cap-and-floor system in the coming months, union officials and players have emphasized the importance for solidarity among the 1,200 members of its major league unit to stave off the league's efforts. Salary caps, which have been in the NFL, NBA and NHL for decades, are popular with fans and seen by many as a solution for the significant payroll gaps between the top and bottom teams in MLB -- with the Los Angeles Dodgers' estimated competitive-balance-tax payroll of $417 million more than five times as much as the Miami Marlins' $82 million.
The union believes the game's relatively even standings so far this season, the success of lower-payroll teams such as Tampa Bay and Cleveland, and the thriving viewership numbers suggest MLB is in too strong a position to endanger the 2027 season by insisting on a salary cap. While the league has told players they would make more money in a capped system, players are wary of putting a ceiling on potential earnings.
While the tenor of the meeting was respectful and calm, sources said, the chasm between the sides remains significant. MLB sees the gap in payroll -- not just between the top and bottom teams but generally among high and low spenders -- as a significant marker of disparity. The union believes the consistent competitiveness of lower-payroll teams -- the Rays, Guardians and Milwaukee Brewers among them -- suggests that intelligent transacting can overcome financial inequality and that a cap-and-floor system should not be necessary to encourage lower-revenue stragglers to increase spending.
Early discussions between the parties rarely lead to significant progress. When the league does formally propose a cap -- owners, sources said, are almost unanimous in their support of one, believing that in addition to evening the playing field it would help goose franchise values -- players will push back in hope of changing the narrative that the cap is a silver bullet for imbalance.
Studies have shown that is not necessarily the case, and with MLB's national television rights expiring after the 2028 season, an enormous potential windfall could inject billions of extra dollars annually into the league's coffers. A prolonged work stoppage could eat into those proceeds, incentivizing the parties to strike a deal and continue the momentum brought about by the introduction of the pitch clock and ABS challenge system as well as the international growth from the World Baseball Classic.
The negotiations come at a seminal time for all parties. The San Diego Padres, purchased in 2012 for $800 million, recently sold for $3.9 billion, reflecting a drastic leap in franchise values since the last sale of the Baltimore Orioles for $1.725 billion. Federal law enforcement officials, in the meantime, are investigating the MLBPA's finances, which led to Clark's resignation after an internal investigation revealed an inappropriate relationship with his sister-in-law. Other high-ranking MLBPA officials, including chief operating officer Xavier James, have been let go in its wake.