MLB owners and players begin CBA negotiations in New York as salary cap fight looms over 2026 season

The 2026-2027 Major League Baseball offseason won’t be dominated by free agency, or big trades. It’ll be dominated by the most exciting aspect of any sport: labor negotiations. 

The Collective Bargaining Agreement between the league and the Major League Baseball Players Association expires this December, and extensive disagreements between the two sides are expected to lead to contentious debate. 

Well, per several new reports, those negotiations are officially underway as owners and the players look to avoid a work stoppage that could derail baseball’s hard fought momentum.

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Both Jeff Passan and Evan Drellich reported on Tuesday that representatives from the league office and MLBPA met in New York City to start the process. And there’s plenty to unpack from the leadup to these discussions already.

Commissioner of Major League Baseball Robert D. Manfred Jr. speaks during the 2024 Grapefruit League Spring Training Media Day at George M. Steinbrenner Field in Tampa, Fla., on Feb. 15, 2024. (Mike Carlson/MLB Photos via Getty Images)

Per Drellich’s report, this first meeting was not intended to discuss "formal proposals." Instead, it was "about setting the stage with opening presentations."

"Both the league and the players were expected to outline their respective visions for how the game is operating today," he wrote. "Moving forward, the real heavy lifting begins, with subsequent meetings set to feature formal proposals on the economics and core issues at hand."

While details on the proposals are scarce, it’s no secret where both sides sit. And the first quarter of the 2026 season has put some very big holes in the league’s arguments already.

Ownership wants to incorporate a salary cap and salary floor, based on arguments and assumptions that big market, high spending teams like the New York Mets or Los Angeles Dodgers are making competitive balance impossible for smaller market organizations. 

New York Mets shortstop Francisco Lindor looks on during an at-bat against the Washington Nationals at Nationals Park in Washington, D.C., on Aug. 19, 2025. (Amber Searls/Imagn Images)

The players, meanwhile, have repeatedly said that a salary cap is a non-starter for negotiations. Their contention is that it limits their earning potential with few benefits, particularly competitive ones. 

And there’s plenty of evidence they’re right.

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It’s still early, but with roughly 25% of the season completed, the New York Mets, with their $370 million and more than $100 million in luxury tax penalties, are one of the worst teams in baseball. They’re 15-25, in dead last in the National League East, and are a whopping 12.5 games out of first place. An expensive lineup that features the highest-paid player in baseball, Juan Soto, along with other high-priced players like Bo Bichette, Francisco Lindor, Marcus Semien, Jorge Polanco and Luis Robert Jr., has scored just 139 runs in 40 games. That’s tied for the lowest run scoring total in MLB this year. 

The other team tied at 139 runs scored? The big-market, high-payroll San Francisco Giants. San Francisco has a $200 million payroll thanks to expensive players like Willy Adames at $26 million per year, Matt Chapman at $25 million, Jung Hoo Lee at nearly $19 million, and Rafael Devers, who’s making nearly $30 million annually. The Giants are 17-24 and 7.5 games out of first place. 

The Philadelphia Phillies, with a nearly $300 million payroll, are 19-22, have been outscored on the season by over 30 runs, and are nine games back in their division. 

Even the Dodgers, who have been accused of "ruining baseball" and making the sport not worth watching, are currently in second place behind the Padres. Their big free-agent acquisition, Kyle Tucker, is hitting just .250 with four home runs and a .392 slugging percentage thus far. He’s making $60 million this year. 

Shohei Ohtani, designated hitter for the Los Angeles Dodgers, leans on the dugout railing during a game against the Miami Marlins at Dodger Stadium in Los Angeles, Calif., on April 29, 2026. (Kiyoshi Mio/Imagn Images)

Meanwhile, the lowly Tampa Bay Rays, whose entire team payroll is just $87 million, are 27-13 and in first. They have one player making more than $9 million this year, pitcher Nick Martinez. 

In the American League West, a division filled with teams in Houston, the Los Angeles metro area, Dallas, and Seattle, it’s the (Sacramento) Athletics in first place as of May 12. The Cleveland Guardians sit first in the AL Central.

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In fact, here are the markets in first in all six divisions: 

• Tampa Bay
• Cleveland
• Sacramento
• Atlanta
• Chicago
• San Diego

How can the owners make a serious argument that it’s impossible to compete with big market teams with the standings the way they are? Well, it won’t be a serious argument because competitive balance is the least of their concerns. Increasing their franchise values and limiting costs are. 

The theory across baseball ownership is that spending less money on contracts makes organizations more valuable. Interestingly, the San Diego Padres, with several big commitments on their books, despite their small market, just sold for $3.9 billion. So that argument falls apart on any level of scrutiny as well.

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In reality, a salary cap benefits ownership by limiting a free market. Players have little reason to agree to it; therefore, a lockout seems inevitable. If anyone analyzing from the outside can see the standings and make this connection, you can bet the players have too. 

It’s a long way from May to December. Hopefully these negotiations, presentations and proposals are successful. Based on prior results, that seems unlikely.