“Well, you’d be cutting your own throat” - MLB insider warns a salary cap could trigger a work stoppage, devastating for baseball

The issue of having a salary cap in Major League Baseball is being discussed. Ken Rosenthal, a baseball insider, warned that there may be a serious work stoppage if people insist on the implementation of a salary cap like in previous player-owner clashes on the "Foul Territory" podcast on Tuesday. It brings into question the future of the game from a business point of view.

"If a cap is instituted it would be accompanied by a floor, and I don't know that the union is ever going to agree to this kind of thing," Rosenthal said. "They want the free market system. My point on a cap would be, OK, I get why the players don't want it. Free market is what all players should want in every sport.

"At the same time is there a number, a percentage of the revenue where the players will be more intrigued? And if the owners want a cap, usually these thing's it's 50 to 55% of the revenue goes to the players, well, maybe the players get a little bit more in baseball because they are agreeing to it."

The proposal for introducing a salary cap arises mostly from owners who want to create more equality among teams. Nonetheless, this is strongly opposed by the MLB Players Association, which believes that imposing it would violate players' right to proper wages and salaries upon becoming free agents, which is an important part of players' rights in baseball.

The MLBPA has always stood against salary caps because it sees them as nothing but a tool for reducing wages and not increasing competition.

"I don't know how this is going to go down in the next couple of years," Rosenthal said. "The agreement expires after the 2026 season, December 1st, 2026. I am not saying the players should take a cap, but if the owners are gonna keep pushing this, alright, push the limits here, give us 60%, give us 65%. The owners would never do that.

"If the owners push the cap, what I see coming is a work stoppage, and that would be the worst thing for this sport at this time. We've had something of a renaissance with the pitch clock and some other innovations that have come about in recent years. We've got some great star players.

"Work stoppage after '26, well, you'd be cutting your own throat."

There are various effects of a salary cap. It may increase equality among the teams since the richer ones would be prevented from getting all the star players.

Lessons from MLB's labor strikes and the potential impact of salary caps

There have been several labor strikes within MLB history. A notable example occurred between 1994 and 1995 when the players went on strike for 232 days, leading to the cancellation of the World Series for the first time since the Second World War.

Ken Rosenthal’s warning about a potential work stoppage points toward these historical events. In such circumstances, not only would the season face disruption again but also fans might turn away.

Owners tried hard to put salary caps, but they didn’t go well with most players, leading them to strike over what they considered a threat to their entitlements.

As MLB continues its discussions regarding salary caps, every stakeholder involved should think if it will bring back labor unrest or not before deciding on what to do next. The message given by insiders like Ken Rosenthal is important about how baseball has always had issues concerning work stoppages.