Mark Walter and Andrew Friedman, the owners of the Los Angeles Dodgers have set standards for Major League Baseball spending by increasing their payroll to $400 million—a record-breaking move. Their notable acquisitions include Shohei Ohtani for $700 million, Yoshinobu Yamamoto for $325 million, and Tyler Glasnow for $136 million placing the Dodgers beyond the reach of other teams’ aspirations.

Dodgers’ supporters rejoice in their victory and spending power while some teams prepare for potential long-term challenges. The New York Yankees’ manager Aaron Boone stands out as a most vocal critic and expresses concerns about the implications of the Dodgers’ extensive expenditures once MLB’s current Collective Bargaining Agreement concludes after 2026.

The Dodgers’ $400M payroll: A game-changer or a problem?

Speaking about MLB’s financial structure on WFAN Sports Radio, Boone highlighted a growing concern: disparity between franchises creates rifts among owners themselves. When you see a team at a payroll level that’s hard to even comprehend, you start wondering what that means for the next CBA. Boone said, “It’s not always just MLB and owners against players, but it’s owners against themselves because they gotta get 23 out of 30 teams to agree to ratify the deal.”

Boone’s concern stems from the fact that teams like the Oakland Athletics, Pittsburgh Pirates, and Tampa Bay Rays are barely scraping by with payrolls under $100 million, while the Dodgers’ spending eclipses that by nearly four times. This financial divide could fuel a contentious CBA battle, with small-market teams pushing for stricter payroll regulations and big-market owners fighting to maintain financial flexibility.

In reaction to the Dodgers’ hefty spending, one of the ideas is to introduce a strict salary limit like the ones seen in the NFL and NBA for player contracts and earning control mechanisms. However, baseball history has shown that the MLB Players Association (MLBPA) which represents players’ interests and rights fiercely resists any such idea as they believe it unjustly restrains player income potential.

A more likely scenario? A more aggressive luxury tax system, where teams that exceed payroll thresholds face even steeper penalties. Currently, teams like the Dodgers, Mets, and Yankees willingly accept tax penalties, knowing their vast revenues still make the spending worthwhile. If smaller-market owners demand a stricter system—such as harsher financial penalties or limits on player contract structures—negotiations could quickly heat up.

Could this lead to a work stoppage in 2027?

If owners fail to reach an internal consensus or if the players reject new spending restrictions, a work stoppage in 2027 becomes a real possibility. The 2022 lockout which lasted 99 days, already demonstrated how fragile MLB labor relations can be, even without a massive payroll disparity. Small market teams might push for a salary cap while big market clubs strive to retain their flexibility, leading to a more intense dispute.

The key issue isn’t just the Dodgers’ spending—it’s whether the league’s financial structure can balance competitive integrity with economic freedom. If smaller teams believe they’re at a permanent disadvantage and refuse to approve a new CBA without major financial reforms, negotiations could reach a breaking point. Likewise, if players see a push for spending restrictions as a direct attack on their earning potential, the MLBPA will have little incentive to compromise.

Seems like Boone’s concerns about owners turning on each other are valid—if too many teams feel the current system is broken, MLB could face one of the most contentious labor disputes or worse, a player strike in its history.

Can you speculate what awaits? Share your thoughts!