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Reading: MLB’s Salary Cap Showdown: A Deep Dive into the History of Baseball’s CBA Negotiations
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Sports Daily > Baseball > MLB’s Salary Cap Showdown: A Deep Dive into the History of Baseball’s CBA Negotiations
Why the impending salary cap battle is nothing new for MLB: A history of baseball's CBA negotiations
Baseball

MLB’s Salary Cap Showdown: A Deep Dive into the History of Baseball’s CBA Negotiations

December 1, 2025 5 Min Read
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Here’s a rewritten version of the content in my own words:


Welcome to the only functioning time machine in American sports media. If you’re reading this, time likely has advanced about a year—give or take, since the machine can’t get the exact date right. Soon, we will reach the end of the current collective bargaining agreement (CBA) between Major League Baseball (MLB) and the Players Association, which expires on December 1, 2026, at 11:59 p.m. ET—exactly a year from today. This could lead to another owner-imposed lockout.

The offseason is warming up, and many are curious about how next winter’s labor talks will unfold, especially around the controversial idea of a salary cap. This is predictable since the recent World Series featured two of the top five highest-paid athletes in sports, and the Los Angeles , equipped with a high-priced star lineup, won consecutive championships for the first time in over two decades.

But wait—I’ve accidentally swung the dial wrong. Instead of the future, I have jumped back about 150 years. The quotes about financial inequality and salary caps come from an 1889 article in the Cleveland Leader. Back then, team presidents complained that wealthier cities like New York and Boston could pay players more, while smaller markets struggled to compete.

This mistake is a reminder that battles over salary caps and financial fairness have been a constant in professional baseball’s history. Understanding these past fights helps predict future labor disputes. CBS Sports explores four major historical salary cap struggles in baseball, showing this conflict is nothing new.


Competing leagues and player action (1889-1903):
Before the National League became baseball’s benchmark, owners tried to control player salaries by imposing caps, which led to competing leagues that were popular with players and fans. Players, led by Hall of Famer John Montgomery Ward who held a law degree, formed the Brotherhood of Professional Baseball Players—the first such union in pro sports. They challenged the salary caps by forming the Players League (PL), promising better pay and player control. Though the PL was popular, it folded after one season when financial backers sided with the National League, which remained the dominant league after making peace with its rival, the newly elevated American League.

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NBA’s salary cap example (1985):
Unlike baseball’s earlier troubles, the NBA implemented a successful salary cap starting in 1984. MLB executives eyed this model to handle financial instability during the rise of free agency in the 1980s. Owners proposed a salary cap mirroring the NBA’s system, which would limit free agency for high-payroll teams but allow low-payroll teams to add players. However, the players union strongly opposed the cap, and the owners eventually dropped the idea, instead focusing on limiting arbitration raises.


Loss of the World Series and federal intervention (1994-1995):
About a decade later, the salary cap issue sparked the longest work stoppage in MLB history, canceling the 1994 World Series—the first time the championship was lost in nearly 100 years. Owners wanted a salary cap combined with restricted free agency, but players rejected this plan, leading to the strike. The season never resumed, and owners even tried using replacement players in 1995, prompting federal intervention and restoring the old collective bargaining terms. This crisis underscored the deep divide regarding salary limits.


Emerging salary control (1997-present):
Post-strike, MLB experienced an unusual stretch of labor peace, but the salary cap debate never ended. Instead of a hard cap, MLB introduced luxury taxes to punish teams that spent excessively, creating a “soft cap” effect without strict limits. Some clubs have embraced this as a spending guide, but others criticize it. The MLB Players Association remains firmly opposed to any salary cap, seeing it as incompatible with union principles. Though discussions continue, past history suggests these disputes will keep resurfacing as owners seek financial control and players fight for fair pay.

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Fan Take:
This historical perspective reveals that salary cap battles are deeply ingrained in baseball’s story, reflecting ongoing struggles for economic balance between owners and players. For fans, understanding these recurring clashes helps explain why labor disputes persist and highlights the importance of fair negotiations to keep the sport thriving and competitive.

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