With each proposal, MLB is taking the CBA negotiations to the next level and perhaps opening a newer front with the MLBPA. They already had their previous rounds on the salary cap and the luxury tax threshold, and those are yet to reach a consensus. MLB now shared their latest set of proposals that includes an overhaul in the existing free agency system, qualifying offers, and deferred contracts. As the MLBPA is unlikely to accept these new terms, the looming lockout risk is becoming a reality.

“MLB’s next CBA proposal includes a maximum contract length of five years for free agents switching teams, and six years if they return to their club. No deferred contracts, eliminates qualifying offer, Five years to free agency for players 30+,” Foul Territory shared via X.

The competition involved in signing a marquee free agent with the maximum value could be a thing of the past. For instance, Kyle Tucker entered free agency after his 2025 season with the Chicago Cubs. The Los Angeles Dodgers picked him up for $240 million for 4 years. This is not going to happen anymore if MLB’s proposal comes to fruition. As per the new proposal, free agents switching teams are capped at a maximum of 5 years. The maximum projected value for these contracts is limited to $202 million or 15% of the team’s payroll.

Thus, for the deep-pocketed teams like the Dodgers, New York Yankees, and Mets, their financial muscle might not work every time in signing up the marquee names from free agency. However, if the same team wants to sign their free agent, they could do so for a maximum of 6 years and $265 million. “The biggest issue baseball fans want solved to strengthen the game is fixing the payroll disparity that leaves too many fans without hope of their team competing for a World Series title,” said MLB spokesperson Glen Caplin.

This is MLB’s way of bringing pay equity to the league.

Additionally, according to MLB’s latest proposal, players need to have 5 years of service time by age 30 to hit free agency, compared to the current 6 years of service time. This may fit right with the MLBPA, but their accepting the capping of free agency seems highly unlikely for the players’ union. MLB also proposed eliminating deferred contracts. The Dodgers have deferred over $1.11 billion in guaranteed player salaries pending so far. This proposal, if it comes to life, would be a direct hit to them.

“A lockout is all but guaranteed at the end of the agreement,” said Bruce Meyer, the MLBPA’s executive director. MLB’s latest proposal, especially their plan to limit free agency, would be another flashpoint, pulling a lockout risk closer. However, for MLB’s commissioner, Rob Manfred, baseball should have the same structure as the NBA and NFL.

Rob Manfred’s NBA footprint is showing in MLB

Apart from the above-discussed proposals, MLB also came up with a “Cornerstone Player” provision. “We also proposed to eliminate deferred compensation and to create a new “Cornerstone Player” provision similar to the NBA’s “Bird Rights” to give every team a fair shot at retaining their fans’ favorite star players. We will continue working with the MLBPA during the bargaining process to improve the game for teams, players, and fans,” Caplin noted.

So, the NBA’s much-talked-about “Bird Rights” provision is coming to MLB.

In the NBA, Bird rights allow teams to exceed the salary cap to re-sign their own free agents. Named after Boston Celtics legend Larry Bird, the provision helps franchises retain core players by offering longer contracts and higher annual raises than rival teams. Something that the Denver Nuggets did with Nikola Jovic back in 2018. They signed Jovic to a $25.5 million deal, allowing Denver to retain their superstar without needing open salary cap space.

So, when Manfred said in the past about following the NBA, he meant business. He even said that if MLB ever expands to 32 teams, he wants to shift to a geographic realignment similar to the NBA. Fans may brace up for more NBA-like changes in baseball.