For the first time since 1995, Major League Baseball and the players association are in a lockout after the two sides were unable to agree upon a new Collective Bargaining Agreement ahead of the previous one’s expiration Dec. 1 at 11:59 p.m.
A lockout means that there is a freeze on trades, signings and negotiations of major league players, that teams cannot communicate with players on their 40 man rosters and the Winter Meetings are cancelled. It does not necessarily mean that games will be cancelled or spring training will be delayed, at least not yet. If the two sides are not able to reach an agreement by the time spring training would normally start in mid-February, it would likely affect the 2022 season, which is scheduled to start its regular season on March 31.
This brings an end to 26 years of labor peace, the longest stretch of the four major North American sports, though it is not particularly surprising. Both the league and players have been at ends with each other for several years now, and while both sides negotiated in Dallas this week, the odds of a deal seemed nonexistent.
The most apparent example of the worsening relationship between the two sides was in May and June of 2020, where the two sides were unable to reach a revised deal for how to restart the 2020 season after the COVID-19 pandemic halted it in March. The league ended up implementing a 60-game season using a previous agreement the two sides struck in March that guaranteed players full prorated salaries instead of scaled salaries or a revenue sharing system like owners proposed, hoping to offset some costs because fans would not be in attendance that season.
According to Joel Sherman, the players association filed a $500 million grievance with the league this past May over the season being only 60 games, something Manfred said publicly that the owners never intended to play more than that amount.
Per Jon Heyman, owners voted unanimously to lock out players after the previous CBA expired, with action taking place right at 12:01 a.m. Thursday.
“Simply put, we believe that an offseason lockout is the best mechanism to protect the 2022 season,” Rob Manfred wrote in an open letter. “We hope that the lockout will jumpstart the negotiations and get us to an agreement that will allow the season to start on time. This defensive lockout was necessary because the Players Association’s vision for Major League Baseball would threaten the ability of most teams to be competitive. It’s simply not a viable option. From the beginning, the MLBPA has been unwilling to move from their starting position, compromise, or collaborate on solutions.”
“This shutdown is a dramatic measure, regardless of the timing,” the MLBPA released in a statement. “It is not required by law or for any other reason. It was the owners ’choice, plain and simply, specifically calculated to pressure players into relinquishing rights and benefits, and abandoning good faith bargaining proposals that will benefit not just players, but the game and industry as a whole.”
The commissioner’s letter can be found here, and the MLBPA’s full statement can be found below:
Statement from the Major League Baseball Players Association: pic.twitter.com/34uIGf762W
— MLBPA Communications (@MLBPA_News) December 2, 2021
Some of the most important issues in these negotiations revolve around revenue sharing, service time and when a player reaches free agency, and disincentivizing tanking.
In Manfred’s letter, he wrote how the league has offered to raise minimum salaries for players, establishing a minimum payroll for all clubs to meet, and a new free agency proposal that would allow players eligible through an age-based system. According to ESPN’s Jesse Rogers, players would reach free agency after five full years of service time, rather than the current six, or by the time they are 29 ½, whichever comes first.
The league also proposed a universal designated hitter, a draft lottery system and raising the competitive balance tax (Rogers reports from $210 million to $240 million).
However, there were parts of their proposal that were quickly shot down, such as reducing pension funding, according to Travis Sawchik.
The two sides will continue to negotiate throughout the winter.
During the lockout, teams can continue to communicate regularly with players not on the 40-man roster. The Pirates will be taking advantage of this by having two separate minor-league camps in Bradenton, Fla. in December and January. General manager Ben Cherington did a Zoom call with local media Wednesday while preparing to fly down to the team’s baseball academy in the Dominican Republic.
“The minor-league player development continues and is obviously really critical for us, and then there’s no shortage of things we need to keep getting better at in baseball operations,” Cherington said. “There’s always an opportunity to do that, and if we have some period of time where we can’t talk with players or agents, then we’ll pour our energy into that to keep getting better into decision-making and our process.”
Until then, the focus will be on if the MLBPA and league will be able to resolve this work stoppage more peacefully than the last, which resulted in the cancellation of the 1994 World Series and a delay to the 1995 regular season.
“The drastic and unnecessary measure will not affect the Players’ resolve to reach a fair contract,” MLBPA executive director Tony Clark said in a released statement. “We remain committed to negotiating a new collective bargaining agreement that enhances competition, improves the product for our fans, and advances the rights and benefits of our membership.”
“Today is a difficult day for baseball, but as I have said all year, there is a path to a fair agreement, and we will find it,” Manfred wrote. “I do not doubt the League and the Players share a fundamental appreciation for this game and a commitment to its fans. I remain optimistic that both sides will seize the opportunity to work together to grow, protect, and strengthen the game we love. MLB is ready to work around the clock to meet that goal. I urge the Players Association to join us at the table.”