MLB owners propose first salary cap since 1994 strikeJesse RogersMay 28, 2026, 03:44 PM ETClose
- Jesse joined ESPN Chicago in September 2009 and covers MLB for ESPN.com.
Major League Baseball owners proposed a hard salary cap to players as part of the next CBA on Thursday, their first firm cap proposal since 1994.
Under the proposal, presented in a meeting with union officials, each team would need to maintain a payroll of at least $171.2 million without exceeding $245.3 million starting in 2027. That includes player benefits just as it does under the current CBT system.
If the sides can’t negotiate a new CBA before the current one expires on Dec. 1, owners are likely to “lockout” the players until a new deal is in place. In that instance, players will have no contact with their teams while league business involving players – like trades and free agency – will come to a halt. The sides are likely to meet again in the coming weeks after each has digested the other’s proposals.
Editor’s Picks
MLB gets first official CBA proposal from union
Guide to MLB’s labor battle: What to know about initial CBA negotiations, salary cap fight and more
MLB Power Rankings: Where every team stands in our final May edition
“Fans overwhelmingly support a salary cap and floor like in the other leagues because they don’t believe a $446 million spending gap from top to bottom is a fair fight,” league spokesperson Gleb Caplin mentioned in a statement. “Our salary cap and floor proposal levels the playing field while sharing baseball revenue with the players 50/50 as we grow the game together.”
Currently 12 teams would need to increase their payrolls to reach the minimum while eight teams would have to shed payroll to get under the ceiling.
The proposal includes a 50/50 split of league revenues with the players. As those increase, the salary floor and cap would also increase. Additionally, the league is proposing a centralized fund for all local media revenues with money distributed equally among the 30 teams.
The proposal comes one day after the union made its first overture to the league which included higher CBT thresholds as well as a higher minimum salary and a tax on teams who spend less than $150 million on their payroll. It did not include a hard salary floor or cap – a sticking point between the sides which could stretch well into the offseason.
The league did not address reserve clause issues like free agency or arbitration in its proposal on Thursday. Nor did it provide any exceptions or carve-outs within the cap system. Those issues could be addressed at a later time, depending on if the sides can agree to the bigger economic issues.
For example, if the union agrees to a salary cap, it’s possible the sides negotiate some version of the Larry Bird rule which exists in the NBA. That allows teams to sign their own players even if its exceeds the cap. They could potentially negotiate a phasing in period for the cap as well. All of that is secondary to the larger economic system which will be negotiated over the coming months.
What actually constitutes as team revenue is also something which needs addressing.
The league is proposing a 7-year term for the next CBA.
Teams that would need to increase their payrolls based on current projections for this season include the A’s, Rockies, Cardinals, Guardians, White Sox, Pirates, Twins, Brewers, Rays, Marlins, Nationals and Reds.
Teams needed to shed payroll to get under the cap include the Dodgers, Yankees, Mets, Blue Jays, Phillies, Red Sox, Braves and Padres.
MLB remains the only major North American professional sports league without a cap-and-floor system. The last time baseball owners proposed a firm cap –1994 — it prompted a 7 1/2-month strike that forced the cancellation of the World Series for the first time in 90 years. MLB eventually withdrew the cap proposal after pressure by the National Labor Relations Board.
