Major League Baseball and the players union have agreed to an alteration to the collective bargaining agreement that will redirect some money collected through the competitive balance tax to teams losing local television revenue, according to a report.
The arrangement is in place for one year. The union believes it will increase spending on players.
\"We believe this agreement should positively affect the player market by softening the impact of revenue declines, by increasing the number of clubs who have monies to spend, and by undermining the ability of clubs to weaponize recent developments in [regional sports network] markets,\" the MLBPA wrote in a memo to players that was obtained by The Athletic.
According to the Associated Press, nine teams cut payroll this past offseason, with uncertainty regarding local television revenue a frequently cited reason.
Via The Athletic