The labor contract between Major League Baseball and its players expire tonight at midnight, but both sides have been working all night to solidify a new agreement. Major areas of contention include the luxury tax, minimum salary for players, and an international draft. The luxury tax, also known as the "competitive balance tax", penalizes a team if it spends beyond a determined percentage of its payroll. The MLB recently dropped its push for an international draft after players resisted due to the diminishing effect it could have on their salaries. The draft currently only admits athletes from the U.S, Canada, and Puerto Rico. The collective bargaining agreement could be extended while the two parties finalize the deal, otherwise the owners could lock out the players.
See "Sticking points remain as MLB, Union look to avoid lockout by Thursday deadline", Barry Svrluga, The Washington Post, November 30, 2016