Baseball faces looming lockout, salary cap battle after 2026 season

Looming over baseball is a likely lockout in December 2026, a possible management push for a salary cap and perhaps lost regular-season games for the first time since 1995.

“No one’s talking about it, but we all know that they’re going to lock us out for it, and then we’re going to miss time,” New York Mets All-Star first baseman Pete Alonso said Monday at the All-Star Game. “We’re definitely going to fight to not have a salary cap and the league’s obviously not going to like that.”

Baseball Commissioner Rob Manfred and some owners have cited payroll disparity as a problem, while at the same time MLB is working to address a revenue decline from regional sports networks. Unlike the NFL, NBA and NHL, baseball has never had a salary cap because its players staunchly oppose one.

Despite higher levels of luxury tax that started in 2022, the World Series champion Los Angeles Dodgers and New York Mets have pushed payrolls to record levels. The last small-market MLB club to win a World Series was the Kansas City Royals in 2015.

After signing outfielder Juan Soto to a record $765 million contract, New York opened this season with an industry-high $326 million payroll, nearly five times Miami’s $69 million, according to Major League Baseball’s figures. Using luxury tax payrolls, based on average annual values that account for future commitments and include benefits, the Dodgers were first at $400 million and on track to owe a record luxury tax of about $151 million — shattering the previous tax record of $103 million set by Los Angeles last year.

Baseball’s collective bargaining agreement expires Dec. 1, 2026, and management lockouts have become the norm, which shifts the start of a stoppage to the offseason. During the last negotiations, the sides reached a five-year deal on March 10 after a 99-day lockout, salvaging a 162-game 2022 season.

The union’s opposition to a cap has paved the way for record-breaking salaries for star players. Soto’s deal is believed to be the richest in pro sports history, eclipsing Shohei Ohtani’s $700 million deal with the Dodgers signed a year earlier. By comparison, the biggest guaranteed contract in the NFL is $250 million for Buffalo Bills quarterback Josh Allen.

Manfred cites that 10% of players earn 72% of salaries.

A management salary cap proposal could contain a salary floor and a guaranteed percentage of revenue to players. Baseball players have endured nine work stoppages, including a 7 1/2-month strike in 1994-95 that fought off a cap proposal.




(AP Photo Mike Stewart)