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Morning Edition

June 4, 2026

MLB commissioner Rob Manfred this week acknowledged the league’s luxury tax has “failed” at addressing competitive balance concerns. His comments come as the league and MLBPA remain at odds over labor talks, with owners holding firm on their salary cap proposal.

— Eric Fisher [[link removed]]

First Up Julian Champagnie was a 22-year-old rookie when the Sixers waived him. Since then, he’s become a shooting engine in the Spurs’ postseason run. Read the story [[link removed]]. Adam Silver said the NBA’s European league is on track to launch next year. He also said the Aspiration investigation is close to wrapping up. Read the story [[link removed]]. The U.S. Women’s Open will pay out a $12.5 million purse this week, setting a new record for a single women’s golf tournament. Read the story [[link removed]]. Terry Rozier is pushing back on an arbitration ruling that allows the NBA to withhold most of the remaining $26.6 million on his Heat contract. Read the story [[link removed]]. MLB Owners Hold Firm On Salary Cap, Cite ‘Failure’ With Luxury Tax [[link removed]]

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NEW YORK — MLB team owners are still going full bore after a hard salary cap in labor talks with the MLB Players Association, as league commissioner Rob Manfred said the sport’s existing luxury tax has “failed.”

Marking some of his most direct comments on the subject, Manfred said that more than two decades’ worth of attempts to make the tax an engine for greater competitive and economic balance have been increasingly ineffective.

“We have tried mightily over several rounds of bargaining to use a competitive balance tax to address competitive concerns, and sometimes you’ve got to admit you failed,” Manfred said as the league is holding an owners’ meeting this week here.

To that end, a record nine teams paid luxury-tax penalties following the 2024 and 2025 seasons. The Dodgers by themselves paid $169.4 million in the tax last year.

“When you see more and more tax getting paid, you realize that is not the kind of speed bump that would help on the issue of competitive balance,” he said.

Labor Dynamics

Manfred’s remarks also arrive as the league and union remain squarely at odds [[link removed]] after each side presented its initial proposal last week. The players are seeking a broad expansion [[link removed]] of the current market-based economic system, including enhanced provisions for free agency and arbitration and a significant increase in minimum salaries.

Management responded a day later with its hard salary cap proposal [[link removed]], topping at $245.3 million per game in 2027. MLBPA interim executive director Bruce Meyer said on Monday that under the cap system, players would collectively lose at least $500 million annually [[link removed]] from reduced compensation. Manfred, however, took direct aim at that assertion.

“Our initial proposal was specifically constructed to ensure that in the first year of the contract, major league players would make more than they made in 2026,” Manfred said. “To the extent that somebody is suggesting something other than that, it’s just not accurate.”

While the Dodgers last fall became the first repeat World Series champion [[link removed]] in a quarter century, MLB says postseason entry, and particularly playoff success, vastly favors large-revenue teams. As a result, the owners see the cap proposal as a key means to leveling the economic playing field.

“The perception among our fans is really strong that we have a lack of competitiveness,” Manfred said.

The commissioner also acknowledged he does have concerns of a repeat of the bitter, cap-related labor fight of more than 30 years ago, when the 1994 World Series was wiped out as a result. And echoing then, players are again vowing to fight a cap for as long as it takes.

“Of course [I worry]. We want to make an agreement,” Manfred said. “We’re open to whatever ideas people have, but we need a realistic framework that addresses the fans’ concerns about competitive balance and you just can’t ignore that financial penalties have not gotten it done for us.”

Media Matters

A critical component of the owners’ cap proposal is a dramatically reimagined revenue system in which all local media revenues would be centralized and shared equally across the league. That represents a major pivot for large-market clubs such as the Dodgers, Yankees, and Mets that currently enjoy disproportionate income from that revenue stream.

Manfred, however, said even the well-heeled and two-time defending champion Dodgers agreed to the concept, in large part because of the greater returns that the league sees in a cap system.

“The Dodgers understand that there is a need to update the overall economic model in the industry, and that the upside associated with that, in terms of growing the industry, growing the popularity of the sport, is big for large markets, small markets, owners, and players,” he said. “In every way, that upside is bigger than any issue that separates us at the bargaining table.”

FRONT OFFICE SPORTS LIVE

Join Us Next Week

As the world’s attention turns to the global game this summer, one thing is clear: The organizations that win aren’t just building audiences—they’re building belonging.

In sports, fandom is a blueprint for loyalty. Teams have long mastered what many industries are still chasing: how to create emotional connection at scale, design seamless experiences across every touchpoint, and turn moments into lasting relationships.

Now, those same expectations are shaping every industry.

Join us [[link removed]] June 11 in Los Angeles for Future of Sports: The Business of Fandom.

We’ll explore how purpose-driven fandom, AI-powered personalization, and real-time infrastructure are redefining engagement—and what every business can learn from sports’s ability to turn customers into communities.

Space is limited— request to attend [[link removed]].

ONE BIG FIG Down to the Wire

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15.9 million

How many people tuned in to Game 7 of the 2026 NBA Western Conference finals between the Spurs and Thunder.

The game outdrew the 2025 NBA Finals and was the most-watched conference finals game since 2016. The seven-game series averaged 10.83 million viewers on NBC and Peacock, according to Nielsen and Adobe Analytics. Read the story [[link removed]].

Daily sports trivia: Can you rank the top five NFL kickers by the most career points scored?

[[link removed]] FOS NEWS USMNT Doc Director on the Reyna Decision

FOS graphic

Rand Getlin spent four years following the USMNT from Qatar to the doorstep of a home World Cup, and the result is U.S. Against the World, now airing Tuesday nights on HBO.

Last week, the show went viral for a reason that had nothing to do with a highlight reel: A clip about the team’s decision on how to handle the Gio Reyna and Gregg Berhalter situation lit up social media.

Getlin joins Front Office Sports to address that decision directly, explaining the editorial reasoning behind it, as well as discussing what it took to get the documentary on-screen.

Watch the full interview [[link removed]].

SPONSORED BY WSC SPORTS

A Conversation With USA Sports President

“Off The Record with Andrew Marchand presented by WSC Sports” is an event series that features the biggest dealmakers in sports, talking about the future of sports media and technology in an intimate setting. Past guests have included Jimmy Pitaro, Rick Cordella, Gary Bettman, Jay Marine, Mark Shapiro, Hans Schroeder, Christian Oestlien, Don Garber, and Gabe Spitzer.

USA Sports president Matt Hong is the featured guest on Tuesday, June 9, starting at 4 p.m. In this closed-door conversation, Marchand will ask Hong about USA’s future plans, how he thinks the sports media landscape is evolving, and where AI stands in it all.

The event is free and includes light appetizers and cocktails. Space is limited so signing up does not guarantee a spot. Request an invite here [[link removed]].

LOUD & CLEAR Bringing the Drama

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“For the first time, we’re seeing the storylines be as dramatic as some of the biggest men’s leagues, and people care when there’s a storyline there.”

—Big Ten Network analyst and former Northwestern softball player Sydney Supple on why Texas Tech’s expensive—and somewhat controversial—roster is driving more fans to college softball.

Between walkoff home runs, NIL discussion, and transfer controversies, the Red Raiders are the most talked about college softball team as they prepare to take on Texas in a rematch of last year’s Women’s College World Series championship. Read the story [[link removed]].

Editors’ Picks New York Drops Ban on Rowdy Knicks Watch Parties Outside MSG [[link removed]]by Ava Hult [[link removed]]The permit is good for one game. Russia-Ukraine War Takes Center Stage at French Open [[link removed]]by Colin Salao [[link removed]]Aryna Sabalenka lost to Russian Diana Shnaider in the quarterfinals Wednesday. Shadow of Hockey Canada Trial Looms Over Carter Hart in Stanley Cup Playoffs [[link removed]]by Meredith Turits [[link removed]]Carolina fans broke out into a “no means no” chant. Question of the Day

Who are you rooting for in the NBA Finals?

Knicks [[link removed]] Spurs [[link removed]]

Wednesday’s result: 47% of respondents said they watched Game 1 of the Stanley Cup Final.

Events [[link removed]] Video [[link removed]] Games [[link removed]] Shop [[link removed]] Written by Eric Fisher [[link removed]] Edited by Katie Krzaczek [[link removed]], Catherine Chen [[link removed]]

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