NEW YORK — MLB Commissioner Rob Manfred said Wednesday that he worries that the upcoming labor battle could result in a repeat of the 1994-95 strike.
However, the league believes a hard salary cap and floor system is needed to solve the competitive balance issue, with Manfred conceding that the competitive balance tax threshold failed to deter the growing gap between the haves and the have-nots.
“Of course I do [worry about a repeat of 1994-95],” Manfred said Wednesday from the MLB owners meetings at the league’s Manhattan headquarters. “You want to make an agreement. We made a proposal on one set of topics. At the outset of the negotiations, I went and said myself, ‘We’re open to whatever ideas people have, but we need a realistic framework that addresses the fans’ concerns about competitive balance, and you just can’t ignore that financial penalties have not gotten it done for us.’”
The Dodgers won their second straight World Series last season with an MLB-record payroll of $515M, including a league-record $169M in luxury taxes. The 30th-ranked Marlins, meanwhile, were $446M lower, at $69M in total payroll.
“We have tried mightily over several rounds of bargaining to use a CBT to address competitive concerns, and sometimes you’ve got to admit you failed,” Manfred said.
The union’s proposal sought to increase the CBT threshold from $244M to $300M.
MLB’s initial proposal included a $245.3M-$171.2M cap-floor, 50-50 revenue split and centralization of all local media revenue. The union, which has been vehemently against a cap for decades, soundly rejected the league’s proposal, with MLBPA Interim Executive Director Bruce Meyer saying players would have lost $500M if it were in place for the 2026 season with current amateur entry figures.
“All I can tell you about our initial proposal is it was specifically constructed to ensure that in the first year of the contract [2027], players would make more money than they made in 2026,” Manfred said. “To the extent that somebody’s suggesting something other than that, it’s just not accurate.”
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Manfred said there was “unanimous support” among all 30 teams for revenue-sharing of all local media, including the Dodgers, whose TV deal averages $334M annually through 2038.
“The Dodgers understand that there is a need to update the overall economic model in the industry, and that the upside associated with that in terms of growing the industry, growing the popularity of the sport is big for large markets, small markets, owners and players,” Manfred said. “And in every way that upside is bigger than any issue that separates us at the bargaining table.”
Currently, 48% of all local revenue is shared equally. However, under MLB’s proposal, relating to non-local TV revenue, Manfred said, “There would be a supplemental, commissioner-driven system to make sure that clubs have enough revenue.”
The next CBA is being dealt with before the league is going through its next national TV deal, where it hopes to secure a massive streaming rights pact after the 2028 season.
“Certainly, the form of revenue sharing in the proposal was influenced by developments in the media market, and where we need to be in order to extract the maximum revenue from the media environment as it sits today,” Manfred said. “You need more control over rights.”
The MLB proposal did not address reserve clause issues.
“In collective bargaining, you take topics in chunks, get them out there, and hope everybody tries to, over a period of time, complete all the issues that they want to address, and you move from there,” Manfred said.
Also of note from Manfred:
- On the Padres’ sale: “Things are moving along with the sale, not ready for a vote today. It’ll be at some point this summer.”
- On expansion: “We’ve made clear to all the cities that have expressed an interest that this is a post-labor topic.”
- On the next Olympics: “That’s something No. 1 we’re going to have to work out with the MLBPA, probably at the end of labor. We’re certainly thinking about it, and I can’t speak for the MLBPA, but it is my impression that they’re thinking about it on a separate track. I hope that’s the case, because we can’t wait until we have a collective bargaining agreement.”
- On the Rays’ stadium situation in Tampa: “They obviously got through the step last week in terms of positive votes over at the county and city level. They need to get to definitive documents, and my understanding is they’re on a mid-Julyish timeline on that. We’re hopeful. And there remains strong community support. We think that the polling runs about 60-40 in favor of the stadium. And we’re hopeful that they get over the next hurdle.”
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