Day 56CBA Expiration

CBA stands for Collective Bargaining Agreement. In professional sports, it’s the agreement between the league and the players’ union that establishes the rules for how the league operates from a labor and business standpoint.

In MLB, the CBA is negotiated between Major League Baseball (MLB) and the MLB Players Association (MLBPA).

What Does the MLB CBA Cover?

The CBA covers nearly every major issue involving players and teams, including:

• Player salaries: Minimum salaries, raises and other compensation rules
• Free agency: When players become eligible to sign with any team
• Arbitration: How certain players negotiate salaries before reaching free agency
• Service time: How a player's time on an MLB roster affects their eligibility for arbitration and free agency
• Trades and roster rules: Restrictions and procedures surrounding player movement
• The MLB Draft: Rules governing the selection and signing of amateur players
• Competitive Balance Tax: MLB's system for taxing teams that exceed certain payroll thresholds
• Benefits: Player pensions, health care and other benefits
• League operations: Certain rules governing the structure and operation of MLB

Why Does the CBA Matter?

The CBA essentially sets the ground rules for the relationship between MLB's owners and its players.

When the agreement expires, MLB and the MLBPA have to negotiate a new deal. If they can't reach an agreement, the sport can face a lockout or strike, potentially delaying or canceling games.

The most recent MLB lockout began in December 2021 after the previous CBA expired. The sides eventually reached a new agreement in March 2022, allowing the 2022 season to begin.

When Does the MLB CBA Expire?

The current MLB CBA runs through the 2026 season. That means MLB and the MLBPA must reach a new agreement before the current deal expires if they want to avoid another labor dispute.

In short: The CBA is baseball's labor rulebook. It determines how players are paid, when they can move between teams, how teams can spend money and many of the other rules governing the relationship between players and owners.

Major League Baseball and the MLB Players Association are currently negotiating a new Collective Bargaining Agreement, or CBA, that will govern the sport for the next several years.

The current CBA expires after the 2026 season, meaning the two sides need to reach a new agreement to avoid another labor dispute.

What Are MLB and the MLBPA Negotiating?

There are several major issues on the table, but one stands above the rest:

A salary cap.

MLB has proposed introducing a salary cap — along with a salary floor — that would place limits on how much teams can spend on player salaries.

MLB currently does not have a traditional salary cap. Instead, teams face a Competitive Balance Tax, commonly called the luxury tax, when their payroll exceeds certain thresholds.

The MLBPA has historically opposed a salary cap because it can limit the amount teams are willing or able to pay players.

Why Does MLB Want a Salary Cap?

MLB argues that a salary cap and floor could improve competitive balance.

The league has a large gap between its highest- and lowest-spending teams. A cap-and-floor system would theoretically prevent teams from spending dramatically more or less than their competitors.

MLB believes that could give more teams a realistic opportunity to compete and create a more consistent economic structure across the league.

Why Does the MLBPA Oppose It?

The players' union views a salary cap very differently.

From the players' perspective, limiting team payroll can also limit the amount of money available to players.

Without a hard cap, wealthy teams can compete for players by offering larger contracts. The MLBPA wants to preserve that competition because it gives players greater leverage in the free-agent market.

That's why the salary-cap debate is about more than just a number.

It's fundamentally a debate over how baseball's money is divided between players and owners.

What Else Is Being Negotiated?

The salary cap isn't the only issue.

MLB and the MLBPA are also discussing changes involving:

• Free agency: Potential changes to how and when players can sign
• Player salaries: Minimum salaries and other compensation
• Roster rules: How many players teams can carry
• The draft: Potential changes to the domestic and international draft systems
• Player health and safety: Rules affecting player workload and working conditions
• Competitive balance: Other ways to make the league more competitive
• Team spending: How payroll and revenue are distributed throughout the league

The two sides have already exchanged proposals, but significant disagreements remain.

What Happens If They Can't Agree?

If MLB and the MLBPA fail to reach a deal before the current CBA expires, baseball could face another lockout or strike.

The owners initiated a lockout when the previous CBA expired in December 2021. That lockout lasted 99 days before the sides reached a new agreement in March 2022.

A new work stoppage wouldn't necessarily mean games are immediately canceled. The length and timing of a dispute would determine whether spring training, Opening Day or regular-season games are affected.

Why Does This Matter Now?

The 2026 season is still being played, but negotiations are happening now because reaching a new CBA takes time.

The longer the two sides remain divided on major issues — particularly the salary cap — the greater the possibility of a labor dispute after the season.

For now, there is no new CBA.

MLB and the MLBPA still have to bridge their differences before the current agreement expires.

In short: MLB wants changes to the economic structure of the sport, most notably a salary cap and floor. The MLBPA wants to protect the open market for players. How those two positions are reconciled could shape the future of Major League Baseball for years to come.

You can read more at CBAWatch.com, a site run by BenchScout.

You can also sign a petition at CBAWatch.com.