Source: Fortune
Summary
President Donald Trump has expressed support for a hard salary cap in Major League Baseball, as proposed by team owners in the next collective bargaining agreement. The cap would be set at $245 million and includes a salary floor for each team. The players union vehemently opposes the idea, which could lead to a lockout and a prolonged work stoppage if an agreement is not reached before December 1. This issue is a key point in what is expected to be the toughest labor negotiation in decades.
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Trump’s support for a salary cap adds fuel to the contentious negotiation between MLB owners and the players union. The proposed cap of $245 million would be a seismic shift in the economics of professional baseball. The players union’s opposition to the idea could lead to a lockout, similar to the 1994 labor dispute that resulted in a strike and the cancellation of the World Series. The owners’ proposal includes a salary floor for each team, but the union remains opposed. The situation is likely to escalate if an agreement is not reached before December 1.
The hard cap is a familiar solution to a familiar problem.
Author: Evan Null
