MLB Facing Major Changes: TV Rights, CBA & Future of the League

A Pivotal Season for Baseball: Labor Tensions and Media Rights Redefined

Thursday’s Opening Day arrives as Major League Baseball stands on the precipice of significant change. Beyond the first pitch, a complex interplay of expiring labor agreements, shifting media rights, and potential league restructuring looms large, threatening to reshape the sport as we know it. The current collective bargaining agreement (CBA) between MLB and the Major League Baseball Players Association (MLBPA) is set to expire at the end of the 2026 season, and the prospect of a lockout is increasingly likely, according to MLBPA Interim Executive Director Bruce Meyer. This comes as the league navigates a turbulent transition in how its games are broadcast to fans.

The Looming Labor Dispute: A Salary Cap on the Horizon?

For decades, MLB owners have sought to implement a salary cap – a system that limits the total amount teams can spend on player salaries – but have consistently been rebuffed by the MLBPA. The players union has indicated it won’t even entertain the notion of a capped system. However, with the CBA expiring, owners, backed by Commissioner Rob Manfred, are almost certain to renew their push for a cap, potentially coupled with a salary floor to incentivize spending. Meyer anticipates a lockout is “all but guaranteed” when the current agreement lapses on December 1, 2026, at 11:59 p.m. ET. A lockout would immediately halt free agency and trades, mirroring the disruption seen in 2021, and establish an informal deadline of early to mid-March 2027 to avoid losing regular-season games.

The Local Broadcast Puzzle: Teams Take Control

Adding to the complexity, a significant portion of MLB teams faced uncertainty regarding their local television rights heading into the 2026 season. One-third of the league – nine teams including the Washington Nationals, Seattle Mariners, and Detroit Tigers – didn’t have local TV deals in place until recently. These teams have now partnered with MLB to launch their own team-branded channels, carried by DirecTV. This move comes after terminating contracts with Diamond Sports Group (now FanDuel Sports Networks) due to missed payments, signaling a broader shift away from traditional regional sports networks (RSNs).

A National Streaming Future?

MLB’s long-term strategy centers on gaining control of all 30 teams’ in-market broadcast rights by the end of 2028. The league aims to package these rights as a national streaming offering, creating a lucrative fresh revenue stream and potentially attracting major streaming services like ESPN+ or Amazon Prime Video. This would represent a fundamental change from the current RSN model. The Atlanta Braves are already pioneering this approach with the launch of BravesVision, secured through a multiyear distribution agreement with Charter’s Spectrum.

National Rights on the Block: A Multi-Billion Dollar Opportunity

The shift in local broadcast rights is just one piece of a larger media rights puzzle. At the end of 2028, MLB’s national media rights agreements with NBC, ESPN, Fox, and CBS/Turner as well expire. Commissioner Rob Manfred has emphasized the importance of having all rights available for negotiation to maximize revenue. He believes that a comprehensive package of playoff and regular-season games will attract higher bids from potential partners. Manfred stated last year, “The key in media negotiations now is having all of your rights available…there will be buyers, and I’m confident there will be buyers at a higher price for us.”

Beyond Broadcasting: League Expansion and Realignment

The potential for change extends beyond media rights. Manfred has even floated the idea of expanding the league to 32 teams and realigning the American and National Leagues, a structure that has been in place for over a century. While the feasibility of these proposals remains uncertain, they underscore the league’s willingness to consider radical changes.

Rising Popularity Amidst Financial Disparities

Despite these looming challenges, MLB is experiencing a surge in popularity. The implementation of the pitch clock in 2023 has led to shorter, more action-packed games, contributing to increased attendance and television ratings. More than 50 million viewers in the U.S., Canada, and Japan watched Game Seven of the 2025 World Series – the most-watched baseball game in 34 years. The recent World Baseball Classic also drew nearly 11 million viewers on Fox and Fox Deportes for its final game. MLB team valuations have risen 13% in the past year, with the average team now worth $2.95 billion, according to CNBC Sport data.

However, despite the rising popularity, MLB’s profitability lags behind other major American sports leagues. In 2025, MLB teams had an EBITDA margin of under 2%, with average revenue of $426 million and average EBITDA of $7 million. In contrast, the NFL boasted a 20% EBITDA margin, the NBA 21%, and the NHL 22%. This financial disparity underscores the need for MLB to address its economic structure and unlock new revenue streams.

The coming months will be critical as MLB and the MLBPA navigate these complex issues. Similar to the recent CBA agreement reached in the WNBA, a successful outcome will require both sides to identify common ground and avoid a potentially damaging perform stoppage. The stakes are high, and the future of Major League Baseball hangs in the balance.