Negotiators for Major League Baseball players and owners sat down Tuesday to begin collective bargaining talks, 7.5 months before their current labor contract expires December 1. The last time the parties started this early was never. The 2021-22 negotiation ran past expiration and cost 99 games. This time, both sides showed up in November.
The timing is not about goodwill. MLB is preparing to announce expansion to two cities by late 2026, a process that requires labor stability and a finalized revenue-sharing framework before ownership groups commit $2.4 billion to $2.8 billion per franchise. Commissioner Rob Manfred has named Nashville, Charlotte, Salt Lake City, and Portland as serious candidates. Each city has ownership groups that include former players, private equity firms, and local family offices. None will write a check while the league's labor future sits undefined.
The Players Association knows this. Getting a deal done by July 2025 gives the union leverage to extract higher minimum salaries, expanded playoff shares, and a revised international draft structure before expansion cities finalize their bids. The union also wants clarity on revenue splits from the league's $8.2 billion media deals that renew between 2028 and 2030. Early talks let the union press for percentage escalators tied to streaming revenue, which is expected to double by 2030 as RSN bankruptcies force teams into direct-to-consumer models.
Owners, meanwhile, need the CBA signed to unlock expansion fees. Two new franchises at $2.6 billion each would generate $5.2 billion in one-time payments split among the existing 30 clubs—roughly $173 million per team. That cash arrives only after the expansion draft, which requires a locked-in CBA to define roster rules, salary-floor mechanics, and luxury-tax thresholds. Several small-market teams are already modeling that $173 million as debt paydown or stadium renovation funding. The Chicago White Sox, for instance, are negotiating a new ballpark deal with Illinois officials and need expansion proceeds to cover infrastructure gaps.
The union's early arrival also reflects internal calculus. Over the past 18 months, teams have signed 14 rookie extensions worth a combined $1.87 billion, including the Tigers' $288 million deal with Kevin McGonigle last week. These extensions lock up players before arbitration, suppressing short-term salaries but guaranteeing long-term security. The union wants the next CBA to raise arbitration floors and shorten service-time requirements, knowing that once expansion adds 60 roster spots, the talent pool dilutes and leverage shifts back to owners.
Watch for movement on three items by March 2025: a revised luxury-tax structure that accommodates the Dodgers' $350 million payroll without triggering punitive penalties; a minimum salary increase from $740,000 to somewhere near $850,000; and international draft rules that let Latin American academies continue operating under team control. If those three move, the rest falls into place.
Expansion bids are due to MLB by September 2026. The CBA talks that started this week decide who profits, and by how much, when those checks clear.
The takeaway
Early CBA talks let MLB lock labor peace before expansion cities commit $5.2 billion in franchise fees by late 2026.
mlbcbaexpansionlaborrevenue-sharingNashville
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