MLB memo orders clubs to halt business as December deadline nears

Major League Baseball clubs received a 34-page memo this month laying out steps to take if owners and players fail to agree on a new collective bargaining agreement by 11.59pm on December 1st. The instructions call for temporarily removing images and videos of current stars from team websites, barring executives from discussing contracts with player agents, and closing all training facilities. Club officials may attend players' weddings only if they agree not to talk about the game with guests, and they are barred from sending Christmas or holiday cards to players.

The memo sets the terms for a dispute that has hung over the World Series between the Milwaukee Brewers and Tampa Bay Rays. The series marked the first matchup of two small-market teams in the Fall Classic since 1991. A lockout beginning after the December deadline could wipe out the 2027 season.

The disagreement centers on how revenue is divided. Juan Soto, an outfielder for the New York Mets, is in the second season of a 15-year contract worth $765 million. Shohei Ohtani, who pitched and hit for the Los Angeles Dodgers, is not halfway through a 10-year deal paying $700 million. Owners are pushing for a salary cap to limit what top players earn.

Under the proposal, a player re-signing with his current team could sign for up to six years at $265 million. A player changing teams could sign for up to five years at $202 million. No individual could earn more than 16 percent of a team's salary cap, which would be set at $245.3 million for a 26-man roster each season. Twenty-seven of the 30 MLB clubs are owned by billionaires, including the owners of the Mets, Dodgers and Boston Red Sox.

Major League Baseball Players' Association officials have accused owners of trying to "juice their profits and franchise values." Commissioner Rob Manfred said the changes are meant to address competitive balance. "In order for this game to reach its full potential, we need to continue to address concerns that our fans have, particularly concerns that go to the core of what we're about, that is, competitive balance," Manfred said. "We need to make sure fans in markets at the beginning of the season have a realistic belief that their team has a chance to win."

Labor disputes have interrupted seasons before. A 99-day lockout delayed the start of the 2022 campaign. The 1994 World Series was cancelled after players and owners failed to agree on a CBA, with a salary cap the sticking point.

The Brewers entered the World Series with the 19th-highest payroll and the Rays ranked 28th. Together, the two clubs spend nearly $100 million less on salaries than the Dodgers. The next deadline for a deal is 11.59pm on December 1st.

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