With Major League Baseball’s collective bargaining agreement set to expire on December 1, 2026, clubs, ownership groups, and their counsel should begin preparing now for the possibility of a prolonged work stoppage. While a negotiated agreement remains possible, a lockout extending into spring training or the regular season could create significant legal challenges that reach beyond traditional labor relations.
In this article for Sports Business Journal, Mark Salah Morgan explains that some of the most significant concerns are the potential effects on broadcast agreements, debt management, and player service time. Lost games could trigger force majeure provisions and disputes concerning media rights contracts. At the same time, interrupted revenue from a stoppage could place additional pressure on debt-service obligations, financial covenants, and franchise valuations. A prolonged lockout would also create questions surrounding service-time credit, arbitration eligibility, and free agency.
Mark also explores the consequences of a prolonged lockout for prospective expansion groups and club front offices, noting that a work stoppage could disrupt expansion-related financing, stadium development, hiring, and media planning. Clubs may face difficult decisions about managing the significant fixed costs associated with non-player employees.