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 league's new proposal sets a $180.2 million salary floor and a $258.2 million salary cap, up from $171.2 million and $245.3 million in its 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 current competitive balance tax and revenue sharing system would remain in place for 2027 before the transition in 2028.
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 collective bargaining agreement expires at 11:59 p.m. ET on Dec. 1, and owners are expected to lock out players at that time. A lengthy lockout similar to the previous one, which ended March 10, 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 system, instead proposing a revised revenue sharing system. In a statement Tuesday, the union accused owners of proposing to "blow up the current system and replacing it with one designed to line their pockets and increase their franchise values." The union said the delayed implementation does not change the "negative impacts," including a "massive reduction in player compensation" and the "elimination of fundamental player rights, including guaranteed contracts."
MLB argues its push for a salary cap and floor is intended to 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, sweeping big-market teams such as the Los Angeles Dodgers and New York Yankees en route to the Fall Classic.
