Major League Baseball has proposed delaying the implementation of a salary cap and floor system until 2028 as part of its latest collective bargaining agreement proposal, the league announced Tuesday. The delay is intended to provide a "smoother transition" and give teams more time to prepare their payrolls, according to MLB spokesman Glen Caplin.
The new proposal sets a $180.2 million salary floor and a $258.2 million salary cap, increased from $171.2 million and $245.3 million in the league's June proposal. A $1 million minimum salary would apply to players with at least two years of service time, while other players would have a $900,000 minimum. The league also highlighted key player benefits including earlier free agency, a 30% increase to the pre-arbitration bonus pool, and transactional reform to reduce roster churn.
According to FanGraphs calculations, four teams currently have more than $258.2 million on the books for 2027 (including arbitration projections), while 20 teams have less than $180.2 million. The current competitive balance tax and revenue sharing system would remain in place for 2027 before transitioning to the cap/floor system in 2028.
The collective bargaining agreement expires at 11:59 p.m. ET on Dec. 1, and owners are expected to lock out players at that time. The previous lockout ended on March 10, followed by a three-week spring training. A similarly lengthy lockout would make it impossible for clubs to become salary cap-compliant in a short period.
The MLB Players Association has repeatedly rejected a salary cap/floor system, instead proposing a revised revenue sharing system to funnel more money from big-market to small-market teams. In a statement Tuesday, the MLBPA accused owners of proposing a system "designed to line their pockets and increase their franchise values," arguing the cap would cause a "massive reduction in player compensation" and eliminate "fundamental player rights, including guaranteed contracts."
MLB contends the salary cap/floor system would improve competitive balance. The league noted that the small-market Milwaukee Brewers defeated the small-market Tampa Bay Rays in the World Series last week and swept big-market teams such as the Los Angeles Dodgers and New York Yankees en route to the Fall Classic.
