From Where We Are

MLB lockout ends: Agreement reached with players association

After a 99-day lockout, the MLB has agreed to several demands made by the MLB Players Association

America’s greatest pastime is getting back into the swing of things! Major League Baseball has ended its 99-day lockout after the league reached a tentative agreement with the MLB Players Association.

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The agreement outlines various changes that aim to stop some of the practices that have allowed team owners to claim a greater percentage of the team’s profits.

Some of the biggest changes include increasing the competitive balance tax threshold for team payrolls from $210 million to $230 million.

The competitive balance tax is known as a luxury tax, and it’s designed to cap how much baseball clubs spend in order to ensure fair competition.

Teams who spend more than the designated threshold must pay revenue taxes that go towards player benefits and funding smaller teams. Basically, a lower tax threshold leads to teams spending less, and players reaping less of the profits.

Another term agreed to will raise the players’ starting salary from $570,000 to $700,000.

The agreement, which will remain in place for the next five years, will allow for spring training to open this weekend and the current 2022 season to take place in its entirety.

Opening day of the 2022 season will take place on April 7th!

For Annenberg Media, I’m Sam Tarlov.