The MLB Players Association fired chief operating officer Xavier James and human resources director Michael O'Neill for cause Wednesday following an internal investigation tied to a federal inquiry into alleged financial improprieties at the union, sources told ESPN.

Attorney Adam Braverman, who is conducting the internal review, delivered a fresh findings report to the MLBPA on Wednesday. The union intends to share information with federal investigators, sources said. Braverman was unavailable for comment. James did not respond to messages, and O'Neill could not be reached.

The Eastern District of New York launched its investigation into the union last year, focusing on several of the MLBPA's business interests. Areas of potential federal interest include the union's involvement with OneTeam Partners, a group-licensing consortium, and Players Way, a youth baseball initiative shuttered after sources told federal investigators the MLBPA had spent roughly $10 million on the venture with limited returns.

The firings follow executive director Tony Clark's February resignation, which came after an internal probe revealed an inappropriate relationship with his sister-in-law, a union employee, sources said.

Veteran major leaguer Chris Capuano, a union staffer since 2019, will assume the COO role. Ian Penny, a former union general counsel now advising executive director Bruce Meyer, was appointed interim HR chief.

The leadership upheaval arrives at a critical juncture. The current collective bargaining agreement expires December 1, with MLB owners expected to pursue a salary cap, a position the union firmly opposes. A lockout is considered likely if no deal is reached, sources said, mirroring the 2021 work stoppage resolved in March 2022.