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.
"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," MLB spokesman Glen Caplin said in a statement. "This proposal would allow a smoother transition into the cap and floor system without delaying key player benefits, including earlier free agency, a $1 million minimum salary, a 30% increase to the pre-arbitration bonus pool, and transactional reform that will reduce roster churn."
The league also newly proposed a $180.2 million salary floor and a $258.2 million salary cap, up from $171.2 million and $245.3 million respectively in its previous proposal in June. The $1 million minimum salary would only apply to players with at least two years of service time; the minimum would be $900,000 for all other players.
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 current competitive balance tax and revenue sharing system would remain in place in 2027 before the transition to a salary cap and floor system in 2028.
The 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 leading up to Opening Day. If a similarly lengthy lockout occurs, it would be impossible for clubs to become salary cap-compliant in such a short period.
The MLB Players Association has repeatedly insisted it will not accept a salary cap and floor system, instead proposing a revised revenue sharing system that would funnel more money from big-market teams to small-market teams. In a statement following the league's proposal, the MLBPA accused owners of continuing to "propose blowing up the current system and replacing it with one designed to line their pockets and increase their franchise values." The union also said that even with delayed implementation, the league's proposal maintains the same "negative impacts," including a "massive reduction in player compensation" and the "elimination of fundamental player rights, including guaranteed contracts."
MLB says its push for a salary cap and floor system is intended to improve competitive balance. The small-market Milwaukee Brewers defeated the small-market Tampa Bay Rays in the World Series last week and swept big-market teams, the Los Angeles Dodgers and New York Yankees, en route to the Fall Classic.
