Spring training is now underway, marking the unofficial end of Major League Baseball free agency. This year’s iteration was a tumultuous one. The upcoming CBA (Collective Bargaining Agreement) negotiations loomed over this free agency period as the MLBPA (Players’ Association) and the Owners’ Association prepare to do battle at the conclusion of the 2026 season. MLB teams also had a clear shift in strategy this offseason, migrating away from long mega deals in favor of shorter deals with higher AAVs (Annual Average Values). Here are the key takeaways from free agency and what effects they could have as we barrel towards opening day of the 2026 MLB Season.
The rich get richer
To the chagrin of most baseball fans, the Los Angeles Dodgers dominated free agency despite already having the largest payroll in the MLB and being the first repeat World Series winners since the Evil Empire Yankees. The Dodgers added Kyle Tucker and Edwin Diaz this offseason to an already star-studded roster. Kyle Tucker was widely considered the top catch of the free agent class, and instead of taking a 10-year mega deal, opted to sign with the Dodgers on a 4-year, $240 million deal. Edwin Diaz was similarly considered the best of his position on the market and inked a 3-year, $69 million deal to become the Dodgers' closer. These additions have been controversial in the baseball community, as many fans believe that these signings prove the need for systemic change to stop super teams from forming. This is sure to be a large talking point in the upcoming CBA negotiations, as it feels to many fans that small-market teams simply don’t have a chance when teams like the Dodgers can outspend them by so much and continuously acquire all the best talent.
Years and opt-outs
In the past, teams have given out long-term deals in free agency with the goal of spreading out the money given to a singular player over a long period of time. However, this year marked a significant shift in strategy. This year, teams had a clear preference for paying players a high AAV over a short period of time, even if that means including opt-outs. The longest contract given out this season was seven years to now Toronto Blue Jays pitcher Dylan Cease. This stands in stark contrast to the 10+ year deals that have become commonplace in the MLB over the past two decades. The benefits of short-term deals with opt-outs for both players and teams are clear. The player gets more control, more money per year, and the ability to opt out and enter free agency again. For the team, the appeal is not being locked into a deal where they might end up paying an aging player far more than they are worth. The pressing question is whether this new contract format will remain popular in the years to come.
Japanese doubts
Major League Baseball is in an era of unprecedented success by foreign-born players, particularly Japanese players. However, despite the success that players out of the NPB (Japanese Professional Baseball League) have had, Japanese players were noticeably underpaid this offseason. Pitcher Tatsuya Imai was perceived as the best pitcher out of the NPB this year and was only able to garner a 3-year, $54 million contract with the Astros. Perhaps the largest underpay was to corner infielder Munetaka Murakami, who was projected to break into the nine-figures, but was forced to settle for a 2-year, $34 million deal. There has always been a fear within MLB front offices about giving large contracts to players from other professional leagues, but this year there was a particularly strong regression to the mean. Just three years ago, the Dodgers shelled out $325 million to Yoshinobu Yamamoto, but it appears that hesitancy still exists towards Japanese players among MLB executives and general managers.
