MLB proposes delaying salary cap until 2028

The Major League Baseball Players Association is fighting a $258.2 million cap that Major League Baseball wants to delay until 2028. The league’s latest proposal would set a maximum payroll of $258.2 million and a minimum spend of $180.2 million per team. This structure represents a major shift from the current luxury tax system that has governed the sport for decades.

Negotiations have been ongoing since the start of the year. The current collective bargaining agreement is set to expire on December 1, 2026. MLB believes teams need more time to adjust their budgets and contract structures before switching to a hard cap. The league proposes keeping the luxury tax system in place for the 2027 season. The new model would then take effect in 2028.

Glen Caplin, a spokesman for the league, said the delay allows for a smoother transition. He stated that this approach avoids delaying other benefits for players. These benefits include a minimum salary of $1 million and an increase in the pre-arbitration bonus pool. The league argues that this timeline gives franchises the flexibility they need without sacrificing key player improvements.

The players’ union remains opposed to any form of salary cap. Union leaders argue that a cap hurts mid-level players and puts guaranteed contracts at risk. They warn that the system could reduce signing bonuses for amateur players by $400 million in 2027. The union has reiterated that it does not accept the salary cap mechanism, a stance that has defined their negotiating position.

Under the proposal, teams could spend 10% below the minimum in 2028. This would allow a payroll as low as $162.18 million for that single year. However, teams would have to make up the difference over a three-year period to meet the cumulative minimum. This flexibility is designed to help clubs manage short-term financial pressures.

MLB calculations show that eight teams would need to reduce their current payrolls by a total of $528 million. These clubs are the Boston Red Sox, Chicago Cubs, Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia Phillies, San Diego Padres, and Toronto Blue Jays. The league believes this reduction is necessary to balance the competitive field.

Conversely, twelve franchises would need to increase their spending by a combined $636 million to reach the minimum threshold. These teams include the Athletics, Chicago White Sox, Cincinnati Reds, Cleveland Guardians, Colorado Rockies, Miami Marlins, Milwaukee Brewers, Minnesota Twins, Pittsburgh Pirates, St. Louis Cardinals, Tampa Bay Rays, and Washington Nationals. The league says this model helps these teams retain their key players.

The proposal also centralizes MLB media rights revenue starting in 2028. The league claims this will help balance competition across all thirty teams. It aims to give smaller market clubs more resources to sign free agents. This financial restructuring is a core part of the league’s pitch to the players.

Both sides have found some agreement on other terms. MLB agreed to reduce the service time required for free agency to five seasons for players aged 30 and older. The minimum salary would rise from $780,000 to $1 million for players with two years of service. Players with less experience would see their minimum rise to $900,000, with an additional $100,000 bonus possible if they stay healthy.

The pre-arbitration bonus pool would grow from $50 million in 2026 to $65 million in 2027. It would reach $75 million for the remainder of a seven-year deal that would last until 2033. MLB also offered extraordinary service payments for the 2026 season. Players who participate in at least 172 of the 187 regular season days would receive $285,000.

This dispute echoes the 1994 strike, which lasted seven and a half months and canceled the World Series. MLB has not proposed a salary cap since then. The union has maintained its opposition to the concept throughout those negotiations. With the deadline approaching in December, the two sides are working to avoid a work stoppage.