MLB’s Looming Labor Battle and Media Rights Shift: A Collision Course for 2027
Thursday’s Opening Day may be the calm before the storm for Major League Baseball. The league’s collective bargaining agreement (CBA) with its players expires at the finish of the 2026 season, setting the stage for potential disruption. Owners, with the commissioner’s backing, are almost certain to push for a salary cap – a proposal that has historically met strong resistance from the players.
The Inevitable Lockout?
MLB owners have been unable to secure a salary cap through negotiations with the MLB Players Association (MLBPA). Bruce Meyer, Interim Executive Director of the MLBPA, expects a lockout is “all but guaranteed” when the current CBA expires on December 1, 2026. A lockout would halt free agency and trades, similar to the 2021-2022 offseason, and create a deadline – typically in early to mid-March – to avoid losing regular-season games.
The Shifting Landscape of MLB Media Rights
Beyond the CBA negotiations, a significant upheaval is occurring in how MLB games are broadcast. Approximately one-third of MLB teams lacked local television deals in place for the 2026 season until recently. Nine teams – the Washington Nationals, Seattle Mariners, Milwaukee Brewers, St. Louis Cardinals, Miami Marlins, Tampa Bay Rays, Cincinnati Reds, Kansas City Royals, and Detroit Tigers – announced on March 20, 2026, that their games will be broadcast on MLB-operated channels carried by DirecTV.
These teams had previously partnered with Main Street Sports (formerly Diamond Sports Group), which operates regional sports networks (RSNs). But, contracts were terminated due to missed payments, leading to financial instability for the RSNs. The Atlanta Braves are too launching their own network, BravesVision, with a distribution agreement with Charter’s Spectrum.
MLB’s Vision for National Media Rights
MLB aims to control the rights to all 30 teams by the end of the 2028 season, enabling the league to package in-market local games as a national streaming offering. This would represent a shift away from the traditional RSN model and create a valuable package for streaming services like ESPN+ and Amazon Prime Video.
In addition to local rights, MLB’s national media rights agreements also expire at the end of the 2028 season, allowing the league to renegotiate deals with existing partners – NBC, ESPN, Fox, and CBS/Turner – or pursue new ones. Commissioner Rob Manfred emphasized the importance of having all rights available during negotiations to maximize revenue.
Potential League Realignment and Expansion
Manfred has even suggested the possibility of expanding the league to 32 teams and realigning the league geographically, potentially eliminating the American and National League structure that has been in place for over a century.
Rising Popularity Amidst Uncertainty
Despite these looming changes, MLB is experiencing a surge in popularity. The implementation of the pitch clock in 2023 has led to shorter game times, increased attendance, and higher television ratings. More than 50 million viewers in the U.S., Canada, and Japan watched Game Seven of the 2025 World Series – the most-watched baseball game in 34 years. The 2026 World Baseball Classic also drew nearly 11 million viewers on Fox and Fox Deportes for its final game.
MLB team valuations have risen 13% from the previous year, with the average team now worth $2.95 billion, according to CNBC Sport data. However, MLB’s profitability remains lower than that of the NFL, NBA, and NHL. In 2025, MLB teams had an EBITDA margin of under 2%, with average revenue of $426 million and average EBITDA of $7 million.
The upcoming CBA negotiations will be pivotal in shaping the future of MLB. While the league faces significant challenges, its recent success suggests that a carefully negotiated agreement can ensure continued growth and stability.