Big Offseason, New CBA, Lead to 11% Increase in MLB Salaries

A new collective bargaining agreement and a star-studded free-agent class contributed to MLB’s biggest salary increase in a generation.

The average MLB season salary leapt 11% to $4.9 million at the start of this season, according to the Associated Press — the largest increase since 2001 (13.9%).

The new CBA, which was reached after a 99-day lockout that delayed the start of the 2022 season, raised both the floor and ceiling on player salaries. 

The minimum salary for players on the 40-man roster jumped from $563,500 in 2020 to $700,000 in 2022, with $20,000 increases each year to 2026. 

The threshold at which teams must start paying MLB’s competitive balance tax increased from $210 million to $230 million in 2022, then to $233 million in 2023. 

Leagues

| by Owen Poindexter

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The most recent offseason was the first full one under the new agreement (most big signings prior to the 2022 season occurred before the lockout), and free agents enjoyed higher-than-expected contracts from the top levels down. 

Seven teams are expected to cross the threshold this season, led by the New York Mets, who are on pace to top $100 million in luxury tax payments.

MLB’s average salary hit $2 million in 2000, growing to $3.3 million in 2010.

The modern record for year-over-year salary increase is unlikely to be beaten anytime soon: MLB salaries exploded by 53.9% to $891,188 heading into 1991.