Major League Baseball and the Major League Baseball Players Union (MLBPA) continue to work towards a new collective labor agreement in order to put an end to the lockout established at the beginning of this month of December.
According to rumors, this new agreement included a termination for the luxury tax after the 2021 season; however, there would be a zero percent chance that the owners will be willing to operate in an economic system that does not include a luxury tax threshold.
As another option, MLBPA Proposed League and Team Owners to Raise Luxury Tax Threshold by 2022 to US $ 245 million in the annual roster of schools. Owners have offered a much more modest raise to $ 214 million, though they have suggested even harsher penalties for teams that spend more.
One of the central issues in the negotiations will not be whether the luxury tax will continue to exist, but its future form, how much higher the threshold will rise, and what penalties there would be for those franchises that exceed the established limit.
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