The Major League Players Association rejected an owner's salary cap proposal, asking players to split all revenues 50-50. In addition, the citation stated that salary arbitration would be eliminated and free agency for players could be reached after four years in the majors instead of six.
As negotiations continued to heat up, the owners decided to withhold $7.8 million that they were obligated to pay into the players' pension and benefit plans. The final straw fell after the Senate Judiciary Committee failed to approve an antitrust legislation that left the players with little choice but to strike.
On September 14th, the remainder of the baseball season was canceled thirty-four days into the players' strike. As a result, the World Series was also called off for the first time since 1904. Three months later, the owners unilaterally implemented a salary cap as negotiations remained at a standstill.