Manfred Officially Cancels Regular Season Games

For the first time in 27 years, Major League Baseball will lose regular season games due to a labor stoppage.

MLB Commissioner Rob Manfred announced earlier today that he has cancelled Opening Day, scheduled for March 31st, as well as the first two series of the season.

There was hope among those in the industry we could see a last-second deal to avoid this situation.

Owners and players had been exchanging offers through the night and into the morning, but the sides were unable to reach an agreement.  The main sticking point during these negotiations, for both parties, is the luxury tax.

While baseball is the last major North American sports league to operate without a salary cap, the luxury tax serves as a sort of “soft cap”.  This means that while there isn’t a rule preventing teams from spending over a certain limit, previously $210 million, there are serious penalties for any team that does so.  The penalties also get more severe the more often a team surpasses that mark.

The owners argue that the luxury tax is the only way to maintain parity and keep the game competitive.  Players argue that the luxury tax threshold prevents teams from spending, which limits the money and options players have available to them.

Players have been adamant throughout this process about raising the threshold from $210 million to $245 million, while owners have maintained their stance that it needs no adjustment.  With this big of an issue separating both sides it is all but assured more games will be canceled before a deal is reached.

Who knows if MLB will have any fans left by that point.