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 offer, the league announced Tuesday.
The delay is intended to provide a "smoother transition" and give clubs a full offseason to prepare their payrolls, according to MLB spokesman Glen Caplin. "We recognize that clubs will need a full offseason to prepare to operate within the cap and floor system. Therefore, with this offseason already underway, we proposed today to begin the cap and floor system in 2028," Caplin said in a statement.
The 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 the league's June offer. A $1 million minimum salary would apply only to players with at least two years of service time; all other players would have a $900,000 minimum.
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 existing competitive balance tax and revenue sharing system would remain in place for 2027 before the transition to a cap/floor system in 2028.
The current collective bargaining agreement expires at 11:59 p.m. ET on Dec. 1, and owners are expected to lock out the 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 such a short period.
The MLB Players Association has repeatedly rejected a salary cap/floor system, instead proposing a revised revenue sharing model that would shift more money from large-market to small-market teams. In a statement Tuesday, the union accused owners of "proposing blowing up the current system and replacing it with one designed to line their pockets and increase their franchise values." The MLBPA said even a delayed cap would maintain "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 cap/floor system aims 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.
