Penny-Pinching Owners vs. Talented Superstars: How the Dodgers' Historic Win Could Spell Disaster for America’s Pastime

Baseball has a problem. And a big one at that. For the past three years, the MLB has seen a fantastic growth in attendance. Four teams had their best attendance in at least 10 years, while 2 teams set franchise records in attendance. The back-to-back champs are the first team to pass 4,000,000 since the Mets and Yankees in 2008. Even television viewership is up, with FOX recording a 9% increase, FS1 reporting 10%, ESPN rising 21%, TBS up 29% and even MLB Network up 13%. All of this, mixed with stellar performances from just about every team in the league this year, makes fanbases hopeful and excited for the next year, and as the Toronto Blue Jays stepped up to take on the powerhouse Los Angeles Dodgers, fans across the globe tuned in.

“Here’s the 0-2 pitch, Kirk bounces one up the middle! Betts to the bag, over to first! To beat the champ, you gotta knock him out! The Dodgers stand tall and win back-to-back titles!” 

Heartbreak across the country as millions of fans watched the Dodgers take down the Blue Jays in the 11th inning late Saturday night. Cementing themselves in history as the first back-to-back champs since the New York Yankees' 3-peat from 1998-2000. As baseball fans finally went to bed, something else was lurking in the shadow of the Dodgers’ victory. And to understand what exactly is at stake, we have to go back. 

It’s December 2nd, 2021, at 12:01 AM EST. Owners across the MLB voted unanimously to force a lockout after the 2016 CBA (Collective Bargaining Agreement) expired between the league and the Players Association, and for the first time since 1994, there was chaos in the MLB. For over a week, the sides met daily to negotiate an agreement. And after three months of speaking, the MLB was forced to cancel its first two series of the season on March 1st, 2022. However, after 10 days and an Opening Day delay, the MLB and the MLBPA (Major League Baseball Players Association) later managed to come to an agreement, and the full 162-game season was salvaged. And with this new agreement came only a handful of changes, but ones that have impacted and changed the game we know:

- Universal DH rule applied to the National League

- Postseason expands to 12 teams

- Luxury Tax increased to $230 million (increases to $242 million in 2026)

- Draft Lottery

- $50 Million Pre-Arbitration Bonus Pool (for young players who excelled but don’t qualify for Arbitration)

- Ads on team uniforms and helmets

- Removal of the Game 163 tiebreaker (only 16 have happened between 1946-2018)

- Player, Umpire, and MLB appointees Joint Committee for rule changes

- Major League Minimum Salary Increase

These changes, while minuscule to the outside, lead to sweeping changes across the league and saw many prominent names in new cities. Carlos Correa (signed with the Minnesota Twins after 7 years with the Houston Astros), Freddie Freeman (signed with the Los Angeles Dodgers after 12 years with the Atlanta Braves), and Clayton Kershaw. However, overall, these changes benefited the league and its players. 

So, if the 2021-2022 Lockout was mutually beneficial, why is a 2026-2027 Lockout such a threat to the sport? 

One Word: MONEY

See, since 2012, the MLB as a whole has more than DOUBLED its revenue. Setting new records consecutively for the past 13. In 2012, the Gross Revenue for the MLB was roughly $7.5 billion, expanding to $12.1 billion last year. With the average team revenue up to $2.6 billion and record sponsorship revenues (>$2 billion), the league is likely to see an even higher Gross Revenue than that. However, despite this trend, MLB owners have been hesitant to spend money on their star players or star free agents. Most recently, the Detroit Tigers and Cy Young (likely x2) winner Tarik Skubal, with Jon Heyman reporting that the Tigers' front office offered the superstar a 4-year contract for less than $80 million. An offer that, while significant in dollar value to the outside world, is disrespectful to a player of this caliber. Another example, the Cleveland Guardians, who have been the poster child of letting superstars walk after grossly undervaluing them. These players are then dealt to “big market” teams for pennies, while the fans are forced to accept that their team is being managed by people who care only for their bottom line and not the product that they put out. This leads to a massive gap in talent and performance as teams like the Dodgers, Yankees, Mets, Phillies, and Cubs to consistently rank at the top of the payroll standings. 

This is where the issue lies: On December 8th, 2024, the internet exploded as news of baseball's top free agent, Juan Soto, finally agreed to sign with a team. The New York Mets welcomed the power hitter with a record-breaking 15-year, $765 million contract. Putting the 25-year-old under team control until he’s 40 with an opt-out at age 30. This contract sent waves through the league as owners were baffled, Mets’ fans ecstatic, Yankees’ fans in tears, and baseball fanbases feeling frustrated. For the 4th time in the Cohen era, the Mets were a top 5 team in payroll, and yet they’ve only had 2 postseason appearances. And with this signing, talk of a salary cap has picked up steam. 

Out of the 5 major sports (Football, Soccer, Basketball, Baseball, and Hockey), the only league without a salary cap is the MLB. That’s due to the CBT (Competitive Balance tax or Luxury Tax), which has been implemented across the league since 1997. The tax works to balance high-value teams with a 20% starting rate (increasing for repeat offenders). The money is then distributed to three categories: Player Benefits, Player Retirement, and Supplemental Commissioner Discretionary Fund. Essentially, a salary cap would remove this tax and instead (using the NFL as an example) put penalties on teams that overspend, such as voiding contracts, losing draft picks, etc. On paper, a salary cap is not by any means a bad concept, and we’ve seen it work across many sports over decades. 

However, baseball isn’t most sports and is often a sport where the most talented team is much more likely to fall short. Regardless of their payroll, a team that spends a fortune isn’t always the team that reaches the postseason. Case in point being the New York Mets, the Houston Astros, San Fransico Giants, all in the top 10 in payroll but failed to make the postseason. But teams like the Cleveland Guardians and Milwaukee Brewers have managed to stay competitive and make postseason appearances despite the drastic difference in payroll. Despite this a push for a salary cap has grown even stronger, with the Dodgers' win, those voices grow louder. 

As I said before, a Salary cap is not a bad concept, and ignoring my bias as a Mets fan, I can see why some would want this implemented. However, there is a misconception as to what the problem is in this league, and it’s on the owners. A salary cap punishes the wrong group of people, the players. I strongly believe owning an MLB team is a privilege, as I’m sure many would be in agreement. Bottom line, as is with any sport, putting the best possible product out there for the fans should be the goal of EVERY. SINGLE. OWNER. And that has not been the case. Look at the Athletics and their ownership. Cleveland and its ownership. Colorado and its ownership. Teams that have every opportunity to put themselves in a position for success but refuse to. Why? Because to them, an MLB team is simply pocketing as much money from their fans as possible. This isn’t a case like the NBA, where players are flat-out refusing to play over the tiniest thing. Baseball players put more on the line, arguably, than any other sport. And often go the whole 162-game season fighting injuries in hopes of putting their team in a position to win it all. This goes on while the owners are focused on upping ticket sales and putting as much money as possible back into their own hands. A salary cap would only reinforce this idea and notion that the players hold all the responsibility for winning. Despite the owner's refusal to build a team that can do just that. 

Granted, I do believe that something needs to be done and that a change is inevitable. But rather than a salary cap, a salary floor would make much more sense across the league. Per Spotrac, the average MLB payroll is $112,707,377, with $108,551,853 being allocated to their active roster. There are 16 out of the 30 teams that fall well below the league average. The Arizona Diamondbacks are the closest at $103,508,333, and the furthest team is the Washington Nationals at a measly $47,186,200. Of those 16 teams, only 5 finished with a record of .500 or better, and in a league where everyone plays everyone, strength of schedule isn’t really a factor. 

Implementing a Salary Floor near the league average in payroll (while maintaining the Luxury Tax) would force owners to build competitive rosters and maintain their star players. Thus, making the league more competitive and giving players the money they deserve, while at the same time pushing owners to be more passionate and hands-on with their team and that team's production. A simple yet effective solution to the growing issue of incompetent owners.

The current MLB CBA is set to expire on December 1st, 2026. Over the next roughly 13 months, the odds of the league and the Players Association reaching an agreement dwindle. Tensions are rising, as evidenced by Superstar Bryce Harper’s comments on the potential of a salary cap. Leaving the future of the MLB up in the air, many fans are wondering what could be next for America’s Favorite Pastime.