MLB team owners have formally proposed implementing a salary cap in baseball, an expected move as labor negotiations with the MLB Players Association intensify but one rife with complications.
After the union made its initial bargaining proposal on Wednesday, management presented its opening offer on Thursday, looking to impose a hard cap on team spending. The proposal from the owners included a $171.2 million salary floor for each team beginning in 2027, a top-end cap of $245.3 million, and an even split of industry revenue between owners and players.
Under this structure, 12 teams would need to raise their payroll spending, based on their 2026 outlays, while eight others would need to make cuts. Foremost among that latter group, of course, is the two-time defending champion Dodgers, which have a MLB-record luxury tax payroll of $420.1 million this year.
“Baseball has gotten stronger because we listened to the fans and made necessary changes on the field, like the pitch clock, to quicken the game and ABS Challenge to get the most important calls right. 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,” MLB spokesman Glen Caplin said. “Fans overwhelmingly support a salary cap and floor.”
