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The players’ union has already promised it will never agree to a salary cap in Major League Baseball, but that didn’t stop owners from proposing one Thursday.
The collective bargaining agreement between the MLB Players’ Association and the league’s owners is set to expire next December, and pressing concerns remain about the possibility of another lockout situation. The last one took place after the 2021 campaign, although the two sides reached an agreement after 99 days.
Today, the MLBPA reportedly submitted its first proposal on how to hopefully find common ground in 2027 and beyond. ESPN’s Jeff Passan reported that the players’ first proposal focuses on cheap owners refusing to spend money on improving their roster because they suggest a “competitive integrity tax.”
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MLB Commissioner Rob Manfred opens the MLB Draft at the Coca-Cola Roxy on July 13, 2025. (Brett Davis/Imagn Images)
The owners balked at this proposition, unsurprisingly, but they came back with theirs. And it’s the first time since the 1994-95 baseball strike that a salary cap has been imposed.
MLB’s proposal would set a salary cap of $245.3 million, while using luxury tax payroll numbers that include benefits and the pre-arbitration bonus pool. The proposal also establishes a payroll floor of $171.2 million.
Several teams, including the Los Angeles Dodgers, New York Mets, New York Yankees, Toronto Blue Jays and Philadelphia Phillies, would be well over the cap if this measure were implemented today. The owners indicated in the proposal that they would discuss a phased implementation schedule, which would give teams that spend the most on payroll a chance to comply with the imposed salary cap.
MLBPA OPENS CBA NEGOTIATIONS WITH PLAN TO PUNISH LOW-SPENDING TEAMS, Raise LUXURY TAX THRESHOLD TO $300M
However, teams like the Miami Marlins, Cleveland Guardians, Tampa Bay Rays and Chicago White Sox, among others, are expected to increase their payroll to reach the proposed floor of $171.2 million.
Additionally, a union escrow system would be put in place, in which all current contracts would remain guaranteed and there would be no ban on guaranteed contracts under a salary cap system. After all, players are always looking for guaranteed money whenever they hit free agency, especially in MLB where those times are fewer than in other professional sports leagues.
The proposal is expected to last seven years.
Besides the important salary cap issue, MLB has also proposed centralizing local media revenue equally among the 30 teams, while giving players a 50-50 share. The proposal would also eliminate the current revenue sharing plan.
Mookie Betts and Freddie Freeman of the Los Angeles Dodgers celebrate after scoring against the New York Yankees during the fifth inning of Game 5 of the World Series in New York on October 30, 2024. (Seth Wenig/AP)
“Our salary cap and floor proposal levels the playing field while sharing baseball revenue with players 50/50 as we grow the game together,” MLB spokesman Glen Caplin said in a statement. “Additionally, by equally sharing media revenue as part of our proposal, we can address another major fan concern regarding local television blackouts.”
While both sides float proposals before the summer even begins, discussions typically intensify after the MLB season ends. A deal shouldn’t be expected to be reached during the 2026 MLB season, but there’s always a chance that one side will meet the other halfway.
However, union leader Bruce Meyer’s statement clearly shows the tension between the two sides.
“Billionaire owners are not looking to cap their profits or the value of their assets, only player salaries,” Meyer said. “This is not out of generosity or a desire to protect the well-being of the game. This is a game aimed at controlling costs, increasing profits and maximizing the value of franchises, all at the expense of past, present and future players.”
Aaron Judge of the New York Yankees rounds the bases after hitting a solo home run in the third inning against the Texas Rangers in Arlington, Texas on April 27, 2026. (Tony Gutiérrez/AP)
It’s no secret that players want teams to keep spending, with Bryce Harper of the Phillies and Manny Machado of the San Diego Padres appreciating what the Dodgers did, spending around half a billion to field a team of superstars. It worked, winning back-to-back World Series titles in 2024 and 2025.
As part of the MLBPA’s proposal, players also want to increase the minimum salary from $780,000 to $1.5 million, as well as raise the first threshold for the competitive balance tax from $244 million to $300 million. This would allow more teams to spend more money without paying the luxury tax.
While other leagues have implemented salary caps, the NHL being the most recent in 2005-06 after their lockout erased the 2004-05 season from the record books, MLB has not found common ground to implement one.
And when players like Juan Soto sign a 15-year, $765 million deal with the New York Mets, why would MLB players want to cap that type of spending if an owner is willing to make such a deal?
Baseball Commissioner Rob Manfred announces that Major League Baseball and the Chicago Cubs will host the 2027 All-Star Game at Wrigley Field in Chicago. (David Banks/Imagn Images)
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“For generations, our members have fought against cap systems because they harm players at every level, erode or eliminate contractual guarantees, pit players against each other, lead to more work stoppages, not fewer, and get worse for players over time,” Meyer said. “Caps do not lower ticket prices for fans, eliminate tanking, or ensure that teams are run with equal skill. They stifle competition by providing owners with an all-purpose excuse for inaction and mediocrity.”
These are bound to be contentious negotiations, but they’re only just beginning here as the 2026 season unfolds with the expiration of the CBA hanging over the sport. The deal is set to expire on December 2.
