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Major League Baseball’s collective bargaining agreement marches near its December 1 expiration. On Tuesday, in response to a June proposal by the Owners to gut the Amateur draft, the MLB Players Association issued a counter proposal. The union’s blueprint directly answers ownership’s push for a streamlined, age-restricted system, setting the boundaries for what will be a defining winter of labor negotiations.
Preserving the High School Prospect
The union’s plan focuses on structural preservation, especially for keeping the high school prospect eligible for the draft. Instead of accepting the ownership’s proposal to shrink the draft to 12 rounds and ban high school athletes from declaring for the draft, the MLBPA wants to maintain the 20-round format and keep prep stars eligible. They also propose opening the draft to all four-year college sophomores, regardless of their age.
This approach protects major league organizations from losing vital minor league roster depth and keeps a large part of the development process within professional baseball. By allowing college sophomores to declare a year earlier, the union is trying to keep advanced talent away from college baseball and their Name, Image, and Likeness (NIL) system, keeping the money and spending on young talent in the MLB. Management, by contrast, prefers a 12-round system to reduce amateur spending and trim the overhead of deep minor league systems.
Combatting Financial Disparity
To address competitive disparity–without implementing ownership’s desired salary cap– the MLBPA is proposing new market flexibility. Their framework would allow teams to trade draft picks across the first ten rounds up to two hours before the start of the draft. It would also lessen the tax penalties for teams that go over their allotted pools, encouraging large contracts to players. The current CBA penalizes teams that outspend their pool by 5% by adding a 75% overage tax and the loss of a first round pick. These penalties increase to a 100% tax and the loss of a first and second round pick if teams outspend by over 10%. Under the MLBPA proposal clubs could outspend by 15% before forfeiting draft picks, and only after 20% would they lose a first round pick.
The union also pushed to move the draft from mid-July (July 11-12 in 2026) back to June. This would give newly signed players an extra month of professional summer instruction, but would separate the event from All-Star Week.
The most innovative element is a targeted financial lifeline for lower-revenue clubs. Designated “small-market” teams would receive $2 million added to their bonus pool in one draft over the next five years, adding another $1 million reward if they reach the postseason. To add more financial ammunition, those franchises could sign up to two early-round draftees (taken before the third round) directly to major league contracts. By signing straight to major league contracts, the slot value of the selection would be removed from their pool. This proposal is designed to help teams outbid lucrative college NIL offers.
How Does This Affect Negotiations?
This counter-proposal is nearly opposite of the owners proposal setting up a stark divide between the two sides. Ownership favors strict cost containment, hard slot values and uniform spending to ensure economic predictability across all 30 franchises. The union is countering with a model built around giving power to the major leagues over college and incentivizing small-markets to invest more in their team.
While draft pick trading is a rare area of common ground that will likely be implemented in the next CBA, the disagreement on amateur spending and age eligibility remains wide. With the current agreement expiring in December, finding a compromise between ownership’s cost-cutting and the union’s wish for more investment will be critical to avoiding a winter lockout and keeping the start of the 2027 season on schedule.
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