MLB insider details why wild spending by Los Angeles Dodgers, New York Yankees and Mets has league on lockout collision course in 2026
Yesterday at 06:28 PM
A top MLB insider recently detailed why the massive spending of teams like the Los Angeles Dodgers, New York Yankees, and New York Mets probably has the league on a collision course for a work stoppage in two years.
The lack of a salary cap in baseball is one of the biggest differences the league has from other major sports leagues like the NBA, NFL, and NHL. Those leagues have come to the understanding that a few very wealthy teams dominating the open market aren’t best for their business and have gone to salary caps.
Unfortunately, for fans of mid and small-market clubs, MLB still is a game filled with haves and have-nots when it comes to finances. The situation has seemingly only gotten worse in recent years. The Mets now have the richest owner in sports and he is willing to throw around some huge paydays to get his franchise a championship.
The defending champion Dodgers are also breaking new ground by putting together contracts with massive deferrals to stockpile talent. After signing Blake Snell this offseason, they now have $1 billion in deferrals to pay off in the future. Unsurprisingly, it has restarted new momentum about a salary cap coming to MLB when the current collective bargaining agreement ends in 2026.
However, during a recent conversation on the “Foul Territory“, MLB insider Ken Rosenthal explained why a lockout/work stoppage could be possible in two years if MLB owners are serious about a salary cap.
Los Angeles Dodgers and New York Mets may need to give up more of MLB pot to avoid a salary cap
Rosenthal believes the MLB Players Union would fight tooth and nail to avoid a salary cap coming to baseball. Due to an obvious preference to have a wide open market where contract rates continue to increase. However, he suggested there might be one way to bridge the gap. And that would be to give players a bigger percentage of the MLB revenue pie.
“I get why the players don’t want it. A free market is what all players should want in every sport. At the same time, is there a number, a percentage of the revenue, where the players would be more intrigued? And if the owners want a cap, 50 to 55 percent of revenue goes to players. Well, maybe the players get a little bit more because they are agreeing to it.”
The MLB insider believes if owners push hard for a cap, the MLBPA should push for 60 to 65 percent of revenue. However, he does not believe the league’s owners would have any interest in such an arrangement.
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“The problem with this whole thing is the players don’t trust the owners to report their revenue properly and that’s not going to get off the ground. If the owners push for a cap, what I see coming is a work stoppage. And that would be the worst thing for this sport at this time… A work stoppage after 2026 would be cutting your own throat.”
The top 10 organizations spent $200 million or more in 2024. While a pair of teams — the New York Yankees and Mets spent over $300 million. The Los Angeles Dodgers had a payroll of $240 million this season. But as mentioned before have massive deferrals in their biggest contract.
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