Imagine trying to run a marathon where some teams are sprinting with state-of-the-art gear while others are using their hand-me-downs. This isn’t fiction; this is what Major League Baseball is going through. The financial gap between the teams is only increasing every season. Everyone knows that it can’t continue like this, and it’s high time that the league does something about it.

Now, as the collective bargaining agreement is nearing its expiration in 2026, the taboo topic of the salary cap is no longer hush-hush. Suddenly, the topic is making the headlines, and while the players’ union is opposed to it, it’s gaining momentum because MLB executives and owners have already reached their breaking point. If Hal Steinbrenner can count the increasing cost of the New York Yankees this offseason, one can only imagine how frustrated the rest of the teams are. These teams are apparently all ready to take on the league, according to the bombshell news dropped by Bob Nightengale.

Nightengale, reporting for USA Today, said without revealing the owner’s name, “One owner believes they have 75% of the votes needed to call for a lockout if the current system isn’t changed after the 2026 season.” An executive told him, “Something has to change.” And it does make sense that they would want a change. After all, MLB is the only major US sports league without a cap.

The NFL introduced a cap back in 1994. The NBA, too, has had one since 1984, and the NHL made a late move in 2005. And no, while there are major doubts about whether it will kill creativity, the cap has not negatively affected any of the sports. They still produced superstars, competitive games, and fan excitement. And well, MLB, in retrospect, is also growing at a much slower rate than the NFL or NBA. The cap is a framework MLB might be missing.

And the lack of framework shows in the disparity between the teams. For example, nine teams are spending over $200 million this season. Five teams haven’t even hit the $100 million. Meanwhile, the Los Angeles Dodgers are expected to spend upwards of $500 million after the taxes and the deferred deals. It’s not a gap but more like a mountain standing between the haves and have-nots.

It’s not that Rob Manfred or others are not aware of this. Manfred admitted that the lack of a cap is a major problem for small-market teams. “I’m sympathetic to fans… who go into the season feeling like they don’t have a chance in the world to win,” he told The New York Times. Well, for now, both sides are gearing up for a possible clash, and MLBPA has also piled up funds in case of a lockout.

The reason behind MLB’s financial disparity

There is also a reason for this gap in spending power. It’s not that teams don’t want to spend; it’s just that some don’t have the funds. The big elephant in the room is the glaring difference in financial power between teams. Take the Dodgers, for example: they are pulling in $300 million annually from their TV deal alone. Meanwhile, the Miami Marlins struggle to even reach $50 million. A major chunk of the problem is the way teams rely on RSNs.

While the Dodgers lock in massive TV deals, the same cannot be said for the smaller teams. Moreover, cable subscriptions and the regional sports networks are struggling. This has turned the once-reliable revenue streams into fragile lifelines. Like Roku pays just $10 million a year for 18 games, and Apple has an $85 million annual deal for Friday Night Baseball. It is far from enough to level the playing field in MLB.

The problem now is that big spenders are continuing to dominate. The Dodgers and Mets have the luxury of spending more money, as they earn more. And this is a major reason why serious conversations about a salary cap are now underway. Stan Kasten, the CEO of the Dodgers, admitted that his team’s revenue is around ten times that of a smaller team at the bottom. So he has the advantage. If that doesn’t say something, what will?

Right now, many think a salary cap would allow small-market teams to retain their superstars and compete with the big dogs in MLB. Do you think it should be implemented? Let us know.