MLB Owners and Players Kick Off Labor Talks in New York as CBA Expires This December

The 2026-2027 Major League Baseball offseason will center on labor negotiations rather than free agency or trades. The Collective Bargaining Agreement between the league and the Major League Baseball Players Association expires this December, with major disagreements expected to spark tough talks.

Reports from Jeff Passan and Evan Drellich on Tuesday said representatives from the league office and MLBPA met in New York City to launch the process. Owners and players aim to avoid a work stoppage that could disrupt baseball's recent gains.

Drellich reported the first meeting focused on opening presentations, not formal proposals. "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."

Owners seek a salary cap and floor, arguing big-market, high-spending teams like the New York Mets and Los Angeles Dodgers prevent competitive balance for small-market clubs. Players call a salary cap a non-starter, saying it curbs their earnings with little competitive upside.

Early 2026 season results undermine the owners' case. After about 25 percent of the schedule, the Mets sit at 15-25 with a $370 million payroll plus more than $100 million in luxury tax. They rank last in the National League East, 12.5 games out of first, and tie for the fewest runs scored at 139 in 40 games. Their lineup includes MLB's highest-paid player, Juan Soto, plus Bo Bichette, Francisco Lindor, Marcus Semien, Jorge Polanco and Luis Robert Jr.

The San Francisco Giants match that run total on a $200 million payroll. Key contracts include Willy Adames at $26 million a year, Matt Chapman at $25 million, Jung Hoo Lee at nearly $19 million and Rafael Devers at nearly $30 million. The Giants are 17-24, 7.5 games back.

The Philadelphia Phillies, near $300 million in payroll, stand 19-22. They trail by nine games in their division after getting outscored by over 30 runs. The Dodgers, often blamed for unbalancing the sport, sit second behind the Padres. Newcomer Kyle Tucker hits .250 with four home runs and a .392 slugging percentage on his $60 million salary.

Tampa Bay Rays top the American League East at 27-13 on an $87 million payroll. Their top earner, pitcher Nick Martinez, makes more than $9 million. In the AL West, the Sacramento Athletics lead as of May 12 despite markets like Houston, Los Angeles, Dallas and Seattle. Cleveland Guardians top the AL Central.

Smaller markets hold first place in all six divisions: Tampa Bay, Cleveland, Sacramento, Atlanta, Chicago and San Diego. Owners face questions on competing against big markets amid these standings. Their real aims appear to be boosting franchise values and cutting costs.

The San Diego Padres, a small-market team with big contracts, sold for $3.9 billion. That undercuts claims that lower spending raises team value. A salary cap would limit the free market to owners' benefit. Players see little gain, making a lockout likely.