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Lockouts in sports, explained: Definition, history, examples and what to know about league work stoppages | Sporting News Canada

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Lockouts in Professional Sports: A Comprehensive Overview

Professional sports leagues in North America and beyond have witnessed a number of work stoppages in recent decades, most commonly known as lockouts. These events arise when owners refuse to allow players to work while a collective bargaining agreement (CBA) is being negotiated. While the term “lockout” is often used interchangeably with “strike,” the two have distinct meanings: a strike is initiated by players, whereas a lockout is initiated by owners. Understanding the nuances, history, and implications of these stoppages sheds light on how labor disputes shape the sports industry.

What Is a Lockout?

A lockout is a unilateral action taken by a league’s owners or owners’ association to bar players from working while they negotiate a new CBA. The owners may lock the facilities, prevent access to training facilities, or refuse to grant the players’ union the right to negotiate. This gives the owners leverage to push for terms they deem favorable. Once the negotiation concludes, the lockout ends, and play resumes under a new agreement. The stakes are high for owners, who can influence revenue sharing, salary caps, and other financial arrangements; for players, a lockout threatens pay, game time, and overall career prospects.

The First Major Lockout: MLB 1994‑95

The most devastating lockout in North American sports history was the 1994–95 Major League Baseball (MLB) lockout. Owners of the 30 teams locked out all players on August 12, 1994, citing a dispute over revenue sharing and the implementation of a salary cap. The league had scheduled a World Series in September, but the lockout forced the cancellation of the postseason and, ultimately, the entire remainder of the season. The 1995 season began only in April after a new CBA was signed on March 28, 1995, shortening the season to 144 games. The lockout’s fallout extended beyond the diamond: ticket sales plummeted, television ratings dropped, and the collective bargaining relationship between MLB and the MLB Players Association (MLBPA) was strained for years.

Subsequent Lockouts Across Leagues

Following the MLB example, other sports leagues experienced their own lockouts:

• NBA 1995‑96 – Owners locked out the 1995–96 season, seeking control over revenue sharing and salary structure. The lockout lasted 103 days, ending on July 1, 1996, after a new CBA was reached. The 1996–97 season began on October 24, but the lockout’s legacy lingered in the league’s collective bargaining philosophy.

• NHL 2012‑13 – Owners locked out the National Hockey League (NHL) to negotiate a new CBA that addressed player compensation and the introduction of a salary cap. The lockout began on September 15, 2012, and lasted until January 19, 2013, when a 66‑day delay forced the league to reschedule the remaining games. The CBA signed on January 19 included a salary cap set at $81.3 million, a major shift from the previous revenue‑based model.

• NFL 2011 – While not a traditional lockout, the National Football League (NFL) faced a potential lockout during the 2011 offseason. Owners sought to eliminate the minimum salary for new players and reduce the number of guaranteed contracts. The two sides eventually settled on a CBA on March 9, 2011, preventing a full work stoppage but setting the tone for future negotiations.

• MLB 2011 – Owners briefly locked out players during the 2011 offseason over the desire for a salary cap and a reduction in the luxury tax penalty. The lockout was avoided after the owners and players agreed to a temporary CBA in December 2010, but the negotiations highlighted a growing divide over the financial structure of the league.

• MLB 2023 – The most recent major lockout occurred on December 2, 2022, after the 2023 CBA expired. Owners sought to eliminate the “luxury tax” and increase revenue sharing among teams, while the MLBPA demanded a higher minimum salary and stronger player protections. The lockout ended on March 10, 2023, after an 87‑day delay, with a new 10‑year agreement that included increased minimum salaries, a new revenue‑sharing formula, and expanded player health benefits. The 2023 season began on April 2 after a shortened spring training schedule.

Why Do Lockouts Happen?

Several factors drive lockouts:

1. Revenue Sharing Disputes – Owners often seek greater control over how television, sponsorship, and ticket revenue are divided among teams. Players, meanwhile, advocate for a more equitable distribution that reflects revenue growth.

2. Salary Caps and Luxury Taxes – Many leagues impose salary caps or luxury taxes to maintain competitive balance. Disagreements over the structure, calculation, and penalties associated with these mechanisms can prompt lockouts.

3. Collective Bargaining Philosophy – Some owners favor a more flexible, free‑market approach to player compensation, while players push for guaranteed contracts and protections against performance‑based terminations.

4. Economic Climate – External economic forces—such as recessions or pandemics—can affect league finances and push owners to renegotiate CBAs. The COVID‑19 pandemic, for instance, forced MLB to delay the 2020 season and to negotiate a short‑term deal in March 2020 that allowed play to resume with a shortened schedule.

The Impact of Lockouts

Lockouts have profound effects on all stakeholders:

• Players lose wages, game time, and conditioning opportunities, which can affect career longevity and performance.
• Teams suffer lost revenue from ticket sales, merchandise, and concessions, in addition to the cost of delaying or canceling games.
• Broadcasters and sponsors face programming gaps, leading to renegotiated contracts and lost advertising revenue.
• Fans experience frustration and disappointment, which can erode loyalty and reduce future engagement.

Moreover, lockouts can leave a lasting scar on the sport’s public image. The 1994 MLB lockout, for instance, left fans questioning the integrity of the game and the fairness of its economics. The fallout was felt for years, with the league working to rebuild trust and ensure the stability of future CBAs.

The Future of Lockouts

While the frequency of lockouts has decreased in recent years—thanks to more sophisticated negotiation tactics and an emphasis on maintaining fan goodwill—labor disputes remain a potential threat. Advances in technology, such as streaming rights and digital sponsorship, add new revenue streams that both sides will want to protect. Additionally, the global nature of many leagues’ marketing strategies means that labor disputes could have international ramifications, impacting fan engagement across continents.

In sum, lockouts are a fundamental component of labor relations in professional sports, reflecting deeper economic and philosophical differences between owners and players. By examining the key moments in lockout history—from the 1994 MLB crisis to the 2023 MLB agreement—fans and observers gain insight into the mechanics of collective bargaining and the complex interplay between revenue, competition, and fairness in the sports industry.