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The players’ union has already vowed it would never accept a salary cap in Major League Baseball, but that didn’t stop the owners from proposing one on Thursday.
The collective bargaining agreement between the MLB Players’ Association and the league’s owners is set to expire in December, and there are some pressing concerns that another lockout could occur. The last was after the 2021 campaign, although both sides reached an agreement after 99 days.
Now, the MLBPA reportedly presented 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 the fact that cheap owners refuse to spend money to improve their roster, as they proposed 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 rejected the proposal, to no one’s surprise, but they have come back with their own. And it is the first time since the 1994-95 baseball strike that a salary cap has been set.
MLB’s proposal would create a salary cap of $245.3 million while using figures for luxury tax payments that include benefits and the pre-arbitration bonus pool. The proposal also establishes a payroll 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 limit if it were to be implemented today. Owners noted in the proposal that they would discuss a phase-in plan that would give teams at the top of the payroll a chance to meet the imposed salary cap.
MLBPA OPENS CBA NEGOTIATIONS WITH PLAN TO PUNISH LAG-USING TEAMS AND RAISE LUXURY TAX THRESHOLD TO $300M USD
Teams such as However, the Miami Marlins, Cleveland Guardians, Tampa Bay Rays and Chicago White Sox would have to increase their salaries to reach the proposed minimum of $171.2 million.
An escrow system would also be introduced with the union, where 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 every time they reach free agency, especially in MLB when those moments are fewer than other professional sports leagues.
The proposal is set to last seven years.
Aside from the significant salary cap issue, MLB also proposed centralizing local media revenue equally among the 30 teams, while giving the players a 50-50 cut of it. The proposal would also eliminate the current revenue sharing plan.
Los Angeles Dodgers’ Mookie Betts and Freddie Freeman celebrate after scoring against the New York Yankees during the fifth inning of Game 5 of the World Series in New York on Oct. 30, 2024. (Seth Wenig/AP)
“Our salary cap and floor proposals level the playing field while sharing baseball revenue with the players 50/50 while growing the game together,” MLB spokesman Glen Caplin said in a statement. “Additionally, by sharing media revenue equally as part of our proposal, we can address another top fan concern about local TV blackouts.”
While both sides throw out proposals before the summer even begins, negotiations usually heat up after the MLB season ends. A deal shouldn’t be expected to be reached during the 2026 MLB season, but there’s always the improbability of one side meeting the other halfway through.
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 asset value, only player salaries,” Meyer said. “This is not out of generosity or a desire to protect the well-being of the game. It is a play to control costs, increase profits and maximize franchise values - all at the expense of players past, present and future.”
New York Yankees’ Aaron Judge 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 Gutierrez/AP)
It’s no secret that players want teams to keep spending, and the likes of the Phillies’ Bryce Harper and the San Diego Padres’ Manny Machado like what the Dodgers have done, spending around half a billion to field a team of superstars. They have managed to win back-to-back World Series titles in 2024 and 2025.
As part of the MLBPA proposal, players also want to increase the minimum salary from $780,000 to $1.5 million, as well as raise the first competitive balance tax threshold 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 latest in 2005-06 after their lockout wiped 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 $765 million deal over 15 years with the New York Mets, why would MLB players want to cap that type of spending if an owner is willing to hand out such a contract?
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 cap systems because they hurt players at all levels, erode or eliminate contractual guarantees, pit player against player, lead to more work stoppages, not less, and get worse for players over time,” Meyer said. “Caps do not lower ticket prices for fans, eliminate second-guessing, or ensure teams are run with equal competence. They stifle competition by offering owners an all-purpose excuse for passivity and mediocrity.”
It’s bound to be contentious negotiations, but it’s just getting started here as the 2026 season unfolds with the expiring CBA hanging over the sport. The agreement is set to expire on 2 December.
