With the collective bargaining agreement set to end on Dec. 1 at 11:59 p.m. ET, Major League Baseball has officially proposed a salary cap in its negotiations with the MLB Players’ Association.
One day after the MLBPA detailed its initial position, MLB announced Thursday that it intends to seek a $245.3 million salary cap (including benefits). It’s the first time since 1994 the league is recommending a hard cap.
According to Spotrac.com, the cap is lower than the amount being spent (including tax) by the New York Mets, Los Angeles Dodgers, New York Yankees, Philadelphia Phillies Toronto Blue Jays, Boston Red Sox, San Diego Padres and Atlanta Braves for the 2026 season.
MLB also proposed a salary floor of $171.2 million, which, per Spotrac’s current calculations, would require 12 teams to increase their payrolls.
MLB also declared it would increase the players’ share of revenue to 50%, which would be a boon to players because, per MLB’s figures, revenues have increased 247% since 2003 while salaries have improved 149%.
The MLBPA fears a regression to 1994, when the union went on strike in the middle of the pennant race — eventually canceling the World Series — and did not relent until the 1995 season was scheduled to begin.
“The owners responded today with a demand for a salary cap system, something generations of players have fought against. The last time the owners made such an explicit push for a cap — over 30 years ago — it led to the longest work stoppage in MLB history… 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.”
MLB commissioner Rob Manfred appeared on ESPN’s Pat McAfee Show on Wednesday and suggested the owners’ salary cap stance addresses the fans’ biggest wish.
“We pay a lot of attention to what our fans are saying,” Manfred said. “The one thing that they’re the biggest on right now is the lack of competitive balance in the game. And I think that’s going to be the cornerstone issue of the negotiations with the MLBPA.”
Heading into Thursday’s action, however, the MLB standings showed four of the top 10 teams on Spotrac’s payroll chart (the Mets, Blue Jays, Houston Astros and Detroit Tigers) with losing records. That goes for 11 of the top 18 teams in payroll, too.
“We’ll continue our review of the owners’ proposal and stand ready to negotiate system improvements that benefit players and fans alike,” Meyer said.
