MLB owners propose salary cap as labor negotiations heat up

Mac Cerullo, Boston Herald on May 28, 2026

Published in Baseball

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With MLB’s current labor agreements set to expire on Dec. 1, the owners and players have begun negotiating a new deal that could shape the sport’s future for years to come.

This week the two sides laid out their opening proposals, and it’s clear they are far apart.

As has long been expected, the owners formally proposed the implementation of a salary cap, a long sought goal that would bring MLB in line with the other major North American professional sports leagues. Owners argue a salary cap would help improve competitive balance and rein in big-spending clubs that tend to dominate the free-agent marketplace, but players have vehemently opposed a cap for decades, arguing that it would stifle player salaries.

According to multiple reports, including Evan Drellich of The Athletic, MLB’s salary cap proposal calls for a cap of $245.3 million and an accompanying salary floor of $171.2 million. There would be a 50/50 split in revenue between the league and players, and all local media revenues would be centralized.

“The biggest issue we need to solve next to continue to grow the game off the field is fixing the payroll disparity unseen in any other major U.S. sport,” league spokesperson Glen Caplin said in a statement to The Athletic. “Ultimately the game is about hope and competition and too many fans in too many markets have too little hope their team has a fair chance to win. 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.”

“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. Further, by sharing media revenue equally as part of our proposal, we can address another top fan concern of local TV blackouts. We look forward to working with the MLBPA during the bargaining process to continue improving the game for the fans.”

The MLB Players Association responded with a statement signaling its continued opposition to a salary cap.

“For generations, our members have fought against cap systems because they harm 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,” MLBPA interim executive director Bruce Meyer said in part in a statement. “Caps don’t lower ticket prices for fans, eliminate tanking or ensure teams are run with equal competence. They suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity.”

Wednesday the players made their opening pitch, which among other things included the creation of a “competitive-integrity tax” for any team whose payroll spending doesn’t meet a minimum benchmark. The concept mirrors MLB’s preexisting Competitive Balance Tax, which levies penalties against clubs that spend above certain thresholds, and would theoretically encourage the league’s lower-spending franchises to invest more in their roster.

The players also proposed an increase in the league’s minimum salary, an expansion of salary arbitration eligibility, qualified free agency for players with five or more years of service time who have reached age 30, an increase in the base CBT threshold, revenue-sharing adjustments that would increase the amount of local television money shared and decrease the amount for in-stadium revenue, and more.

“We all see the momentum in our game. Amazing Players and incredible fans. Attendance, viewership, interest — by any measure you want to use, our game is moving in a positive direction. We’ve put forward proposals designed to continue that trend,” said Chris Bassitt, a Baltimore Orioles right-hander and an MLBPA executive subcommittee member.

Negotiations are expected to continue throughout the season, and if a deal isn’t reached by the start of December the widespread expectation is that MLB will lock out the players, potentially putting the start of the 2027 season in jeopardy.