MLB Raises Salary Cap Proposal to $258.3 Million in Push for 2028 Start

Major League Baseball and the MLB Players Association remain at an impasse over the structure of the league's financial framework, with the central dispute focused on the implementation of a salary cap and floor. The league has formally proposed delaying the start of the cap and floor system to 2028 to allow teams time to adjust their payrolls, a move designed to ease the transition from the current competitive balance tax regime.

MLB has increased its proposed salary cap to $258.3 million and the salary floor to $180.2 million. This figure represents an increase from the league's initial proposal in June, which set the cap at $245.3 million and the floor at $171.2 million. Under the new timeline, the existing competitive balance tax and revenue sharing systems would remain in effect for the 2027 season, giving clubs a full offseason to restructure their rosters before the new financial limits take hold.

Glen Caplin, an MLB spokesman, stated that the proposal acknowledges the operational needs of the clubs. He noted that a smoother transition is necessary because the current offseason is already underway. Caplin emphasized that the league is willing to discuss further phase-in scenarios to reach a final agreement on the compensation structure.

The players' union has expressed strong resistance to the cap and floor system, viewing it as a primary obstacle to a new collective bargaining agreement. An ESPN poll of current major league players revealed a divided but largely opposed stance on the issue. Sixteen players polled expressed firm opposition, while five indicated they were open to further discussion. Several players cited the 1994 strike and the 2022 lockout as precedents for holding out against unfavorable terms.

The league has tied other proposed changes to the acceptance of the salary cap and floor. These changes include a 154-game season, a standard off day every week, and an expansion of the Division Series from best-of-five to best-of-seven. MLB also proposed allowing higher seeded teams to select their opponents in the Wild Card and Division Series. The union has countered with its own draft proposals, including moving the draft back to June and preserving the 20-round format.

Commissioner Rob Manfred and interim union head Bruce Meyer have continued to exchange positions on various topics, including roster rules and free agency windows. Meyer criticized the league's proposed quiet periods for limiting player leverage. The two sides must reach an agreement before mid-March 2027 to avoid a high risk of delaying or shortening the 2027 season. A lockout extending into late May would trigger contract extensions for national broadcast deals, potentially delaying the league's planned centralization of streaming rights.

The current collective bargaining agreement governs the working relationship between players and owners for a five-year period. The previous agreement was reached after a 99-day lockout that delayed the 2022 season. The next agreement will determine how league revenues are divided between the two sides, covering issues from minimum salaries to roster sizes and travel protocols. The negotiations continue as both sides prepare for the upcoming season.