Latest On MLBPA’s Funds
The Major League Baseball Players Association is putting aside money in anticipation of the end of the collective bargaining agreement, as it routinely does. Jorge Castillo of ESPN and Evan Drellich of The Athletic report that the union has about $519MM in total assets, as of the start of this year.
It is standard practice for both MLB and the MLBPA to set aside money in a CBA year, as having a war chest could be needed for a work stoppage or for leverage in negotiations. Back in February, it was reported that the league had set aside about $2 billion. No details on the MLBPA’s funds were available until this week.
As both Castillo and Drellich point out, the MLBPA war chest has more than doubled relative to the last round of CBA talks. In 2021, just after the COVID-impacted 2020 season, the union had under $200MM on hand. Castillo reports they had $171MM ahead of the last round of negotiations, though Drellich puts them slightly higher at $192MM. Both reports note that the players have allowed the union to withhold licensing checks since 2024, in order to bolster the available funds.
After more than 25 years without a work stoppage, the league locked out the players in December of 2021. That lockout lasted 99 days until a new agreement was reached in early March, just in time to still play a full 162-game season, with some creative scheduling.
Many in the industry are expecting yet another lockout after the CBA expires on December 1st this year, with the bargaining perhaps becoming even more contentious. The game’s economic imbalances have seemingly widened. Clubs like the Dodgers and Mets continue to ramp up spending to record highs. Other clubs have been clutching the purse strings tightly, pointing to the decreased broadcast revenues as many fans cut cable cords and pivot to streaming.
The owners are expected to push for a salary cap, as they have done in the past. The players are opposed to a salary cap and will likely push for alternatives involving greater revenue sharing between clubs. Any salary cap proposal would be accompanied by a salary floor, which would likely require the smaller clubs to receive more money from the bigger clubs, in order to meet that floor. A notable shake-up of baseball’s finances seems inevitable, though the league and union will have different ideas about which changes are acceptable.
If the two sides can’t reach consensus on an acceptable framework, the possibility of losing games in 2027 would grow. Such an outcome would have negative consequences for baseball at a time when its popularity is on the upswing. Ratings and attendance have been increasing in recent years, with Game Seven of the 2025 World Series the most-watched game since 1991. The recent World Baseball Classic had TV ratings comparable with the most recent NBA finals. Cutting into that popularity could be costly since a large number of the league’s broadcast deals expire after the 2028 season.
Even if the two sides can avoid cancelling games in 2027, a lockout is still widely expected. MLB commissioner Rob Manfred has spoken positively about how a lockout affects negotiations. In the wake of those comments, then-executive director of the MLBPA Tony Clark said the union expects to be locked out. Clark recently resigned under the shroud of scandal with deputy director Bruce Meyer taking over on an interim basis.
Speaking of Clark, during his tenure, concerns were raised about an MLBPA-owned company called Players Way. The company came under federal investigation as the union seemed to be diverting millions of dollars to it without the company doing much with that money. The union hired a law firm to conduct an internal investigation in response to those concerns, as well as the investigation of OneTeam Partners, a joint venture with the NFLPA. That internal probe reportedly uncovered messages between Clark and his sister-in-law, an MLBPA employee, which led the union to seek his resignation. This week, both Castillo and Drellich report that Players Way has now been shut down.
Photo courtesy of Evan Petzold, Imagn Images
MLB, MLBPA Putting Aside Money Ahead Of CBA Negotiations
The collective bargaining agreement between Major League Baseball and the Players Association expires December 1st. Many in the industry expect a lockout and some even worry about the potential for lost games in 2027. Jon Heyman and Joel Sherman of The New York Post report that the league has put aside a war chest of about $2 billion, roughly $75MM per team, from a central fund to help weather a potentially lengthy stoppage. The MLBPA has made similar preparations but the report doesn’t provide specifics for that side.
At first blush, it may seem ominous that such measures are being taken, especially when the rhetoric around the negotiations has been contentious. However, the piece from The Post points out that these kinds of steps are standard procedure when a CBA is expiring, both for MLB and the MLBPA.
When the previous CBA expired, the owners immediately locked out the players. That lockout lasted 99 days and was resolved just in time for a full 162-game season to be played in 2022. Another lockout is expected after the upcoming season. That’s both due to tensions seeming high and because MLB commissioner Rob Manfred has spoken positively about how a lockout affects negotiations. In the wake of those comments, then-executive director of the MLBPA Tony Clark said the union expects to be locked out. Clark recently resigned under the shroud of scandal with deputy director Bruce Meyer taking over on an interim basis.
For those pessimistic about a speedy resolution, there are things to point to. The economic imbalances of the game have seemingly grown more extreme. The Dodgers have been consistently in the playoffs for more than a decade and have won the past two titles, while running historically high payrolls. That has led to many fans to call for a salary cap, something many owners want as well. Ownership has historically favored a cap with the union opposed. The ownership side often cites competitive balance as a justification for a cap while the player side will say the owners simply want to control labor costs and increase franchise values.
An optimist could point to other factors. Manfred’s contract runs through January of 2029 and he has said he doesn’t plan to seek another term. He may not want to have a lengthy work stoppage as his parting legacy. He also intends for the league to seek a massive payday from broadcast rights after the 2028 season, when a large number of the current contracts will expire. Baseball’s popularity is currently on the rise but could drop if a large number of games are cancelled, which would hurt the value of the broadcast rights.
Time will tell how it all plays out. For now, both sides are getting prepared, as they always do. The Post says that negotiations are expected to begin once the regular season commences in late March.
Photo courtesy of Susan Tompor, Imagn Images