The current collective bargaining agreement between Major League Baseball and the Major League Baseball Players Association is set to expire at 11:59 p.m. ET on Dec. 1. It is expected that MLB will institute a lockout following the CBA’s expiration, and the lockout could threaten the 2027 season. Sportico’s Michael McCann, who is an attorney and a law professor, breaks down the potential legal fallout of a lockout in two parts. Below is Part I, which analyzes the outlines of the labor dispute and the legal questions confronting MLB and management. Part II, which will run on Monday, will look more closely at the player and labor side of the legal question.

1. What’s the Dispute About?

At the core, the disagreement between MLB and MLBPA is about money, and who gets it.

MLB contends cost controls are needed to bridge the wide gap between teams that spend massive amounts of money on payroll and those that spend comparatively little. According to Spotrac, the New York Mets’ player payroll this year is $328 million, while the Cleveland Guardians’ is $80 million. MLB has reportedly proposed a salary cap and salary floor of $245 million and $171 million, respectively. In other pro sports leagues, there are salary caps and maximum salaries, which are depicted as helping to promote fair play and leveling the playing field.