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Dodger Blue > Featured > MLB Lockout Rumors: Luxury Tax Threshold Not Part Of Recent CBA Proposals
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MLB Lockout Rumors: Luxury Tax Threshold Not Part Of Recent CBA Proposals

Matt Borelli
February 24, 2022
4 Min Read
MLB lockout
Rich Graessle/Icon Sportswire
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Major League Baseball and the Players Association (MLBPA) have met every day this week at Roger Dean Stadium in effort to negotiate a new collective bargaining agreement (CBA), but time is running out to get a deal done to avoid pushing back the start of the regular season.

The league reportedly reiterated to the union on Wednesday that Feb. 28 remains the deadline for a new CBA to be in place, and going past it would mean playing a shortened 2022 season due to canceled games.

In the latest round of negotiations, MLB and the MLBPA have largely focused on establishing a pre-arbitration bonus pool and Draft lottery.

Other important topics have been discussed this week, but one notable omission is the luxury tax threshold. According to ESPN’s Jeff Passan, MLB and the MLBPA finding common ground on that issue could determine whether Opening Day will take place on March 31:

THREAD: I’d like to talk about the CBT. Today was the third consecutive day of bargaining, and neither the league nor the union has made a proposal on the competitive-balance tax, which is vital seeing as it is almost certainly going to determine whether opening day is March 31.

— Jeff Passan (@JeffPassan) February 24, 2022

The Players Association has asked for the luxury tax threshold to increase to $245 million this year, then $252 million, $259 million, $266 million and $273 million over the lifetime of a new CBA.

MLB has not gotten close to the figures as of last week, proposing totals of $214 million, $214 million, $216 million, $218 million and $222 million. The league also offered to remove the loss of a third-round draft pick for teams that exceed the first luxury tax threshold, but increased monetary penalties from the last CBA.

With the MLB’s current proposal, first time offenders would pay a 50% tax on the first threshold, 75% tax on the second and 100% tax on the third. Furthermore, teams who exceed the second and third tier will still lose their second- and first-round draft picks, respectively.

Bellinger: MLB CBA needs ‘to be fixed’

The upended offseason has created an array of challenges for players, but Cody Bellinger is understanding of the drawn-out negotiations.

“It’s extremely unfortunate, but things have to get done, and we all know that,” he said. “Hopefully things get figured out here and we can get going.”

Bellinger’s career has seen him rewarded financially but realizes there are other players who haven’t enjoyed such benefit. “There’s things in the system that need to be fixed, and that’s what we’re working towards,” he said of a new CBA.

“Hopefully both sides can work together, see the big picture and what’s important. That’s getting the game going. Things have to get dialed in first before we can do that, and then guys will be ready to go.”

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TAGGED:Collective Bargaining AgreementMLBMLBPA
ByMatt Borelli
Matt Borelli covers the Los Angeles Dodgers as a staff writer for Dodger Blue and holds similar responsibilities for Lakers Nation, a sister site with an emphasis on the Los Angeles Lakers. He also contributes to RamsNewswire.com and RaidersNewswire.com. An avid fantasy sports player, Matt is a former 2014 MLB Beat the Streak co-champion. His favorite Dodgers moment, among a list of many, is Clayton Kershaw's no-hitter against the Colorado Rockies in 2014. Follow him on Twitter: @mcborelli.
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