The New CBA — MLB Minimum Salaries
The Collective Bargaining Agreement (CBA) between MLB and the Players Association (PA) expires on December 1st. The new CBA will be a hot topic this offseason. Negotiations could delay the 2022 season and potentially cause a lockout or strike. We will look at a number of changes you might see in the next CBA.
One item that didn’t change very much in the current agreement is the minimum salary of a Major Leaguer. The minimum salary rose from $507,500 to just $535,000 when the current CBA began in 2017. That was only a 5% rise from the prior agreement. In the 4 following years leading up to the 2021 season minimum of $570,500, the rise was less than 2% per year.
The negotiation process for this CBA will consist of the players making a list of demands and the clubs offering some sort of counter proposal. While the PA is supposed to represent all players with Major League contracts, the leadership of the PA is generally comprised of older veterans. These veterans have generally fought to raise the compensation at the top end of the pay scale in free agency rather than to the youngest players in the league. That may be the reason that the minimum salary remained so low in the 2017 agreement.
For the 2022 agreement, we should see a much larger rise. Not only has inflation been soaring, but younger players are creating more value than ever for teams. There have been rumors that the teams have made an offer that includes a salary floor as well as a lower and harsher luxury tax threshold. This tactic would likely come with a much larger minimum salary.
This would force teams like the Rays, Pirates, Orioles, Marlins, and Indians to raise their payroll, potentially due to a higher minimum. That seems like a good thing for the players. However, as all teams push more money into these lower salaries, they’d have less money to negotiate at the top end of the free agent market, especially if the luxury tax thresholds are lowered. It might offer more competitive balance on the field, which is generally a good thing for the game.
The 2022 agreement will likely see a 10% or more raise in the minimum salary, with larger inflation adjustments in the 5% range. That would put the new minimum in the range of $625,000–$650,000 for the 2022 season. The 2012 CBA saw the minimum rise from $414,000 to $480,000, a 16% raise. This was the same raise given in the 2007 agreement. That raise would put the minimum at $661,000.
Below is the MLB Minimum Salary by Year:
2021: $570,500
2020: $563,500
2019: $555,000
2018: $545,000
2017: $535,000 (new CBA begins with 5% raise)
2016: $507,500
2015: $507,500
2014: $500,000
2013: $490,000
2012: $480,000 (new CBA begins with 16% raise)
2011: $414,000
2010: $400,000
2009: $400,000
2008: $390,000
2007: $380,000 (new CBA begins with 16% raise)
2006: $327,000
2005: $316,000
2004: $300,000
2003: $300,000 (new CBA begins with 50% raise)
2002: $200,000
2001: $200,000
2000: $200,000
1999: $200,000
