MLB average salary sets record in 2025 despite slowing increases

Major League Baseball players' average salary reached a record $4.7 million in 2025, but the growth rate slowed to just 1.4%, lagging behind inflation. This comes as the league's collective bargaining agreement nears expiration, setting the stage for potentially tense negotiations. Attendance and revenue trends remain positive, bolstering the sport's financial health.

The Major League Baseball Players Association, via the Associated Press, released figures showing that player salaries rose by only 1.4% in 2025, a sharp deceleration from previous years. This marks the slowest increase since a period of declines through 2021, influenced by the COVID-19 pandemic's impact in 2020 and 2021. For context, salaries jumped 14.8% in 2022, 7.2% in 2023, and 2.9% in 2024, reflecting a post-pandemic rebound.

The average salary for the 2025 season hit a new high of $4,721,393, underscoring the overall upward trajectory despite the tempered growth. This development arrives ahead of the current collective bargaining agreement's expiration on December 1, 2025, which could lead to contentious talks between players and owners in the upcoming offseason.

On a brighter note, fan engagement continues to grow. Seventeen of the 30 MLB teams recorded year-over-year attendance increases in 2025, with the New York Mets leading at more than 10,000 additional fans per game. Eleven teams gained over 1,000 fans per game, including the Toronto Blue Jays with over 2,000, the San Francisco Giants with more than 3,000, and the Detroit Tigers with nearly 7,000. League-wide, regular-season attendance totaled 71,409,522, the highest since 2017 and marking the third consecutive year of growth.

Revenue figures for 2025 are not yet available, but Forbes reported MLB's 2024 earnings at a record $12.1 billion, up from $11.6 billion in 2023 and $10.9 billion in 2022. Analysts expect another record in 2025, providing a strong financial backdrop amid labor uncertainties.

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Vladimir Guerrero Jr. and Juan Soto depicted signing record-breaking MLB contracts for Blue Jays and Mets, symbolizing league's massive player deals.
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MLB teams' largest contracts highlight recent extensions

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Major League Baseball teams have committed to massive contracts in recent years, with extensions and free-agent deals setting franchise records across the league. Standouts include Vladimir Guerrero Jr.'s 14-year, $500 million extension with the Toronto Blue Jays and Juan Soto's 15-year, $765 million free-agent pact with the New York Mets. These agreements underscore the growing financial stakes in player retention and acquisition.

Major League Baseball owners are reportedly set to push aggressively for a salary cap in upcoming labor negotiations, driven by frustration over big-market spending sprees. The move comes as the collective bargaining agreement nears expiration, raising fears of another work stoppage. Players' union leaders remain firmly opposed, viewing the cap as a tool to boost owner profits rather than improve competition.

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The Los Angeles Dodgers faced a staggering $169.4 million luxury tax bill for the 2025 season, contributing to a league-wide record of nine teams exceeding the threshold. This marked the highest total payments in MLB history at $402.6 million. The competitive balance tax threshold rose to $241 million, which the Dodgers surpassed with a $417.3 million payroll.

Outfielder Kyle Tucker, MLB's top free agent, has agreed to a four-year, $240 million deal with the Los Angeles Dodgers, featuring the highest average annual value in baseball history. The contract includes opt-outs after the second and third years, a $64 million signing bonus, and $30 million in deferrals, bringing the present-day AAV to $57.1 million. This move bolsters the back-to-back World Series champions' outfield as they pursue a three-peat.

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Major League Baseball revealed three-year media rights agreements with ESPN, NBC and Netflix on Wednesday, following ESPN's earlier opt-out of its previous contract. The deals, worth nearly $750 million annually, redistribute key broadcasts including Sunday Night Baseball to NBC and the Home Run Derby to Netflix. These partnerships aim to expand national coverage starting in 2026 while integrating MLB.TV with ESPN's streaming platform.

Major League Baseball announced new three-year media rights agreements with ESPN, NBCUniversal and Netflix on Wednesday, covering the 2026-2028 seasons. The deals shift Sunday Night Baseball to NBC, give Netflix exclusive coverage of Opening Night, the Home Run Derby and the Field of Dreams Game, while ESPN gains rights to MLB.TV and additional national games. The partnerships aim to expand fan reach amid rising viewership from the 2025 season.

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MLB Pipeline highlights six under-the-radar prospects outside their teams' top 10 who might climb into the 2026 Top 100 Prospects ranking. These players showed promise in 2025 through strong performances in the minors and the Arizona Fall League. The full Top 100 list will be revealed on MLB Network on January 23.

 

 

 

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