Major League Baseball proposed delaying the implementation of a hard salary cap until 2028, telling players that clubs carry too many financial commitments for the upcoming season to cut spending quickly enough, according to details released from labor negotiations in New York. The league delivered the proposal to the Major League Baseball Players Association on Tuesday, one day after the opening of the 2026-27 free-agent signing window.
The latest framework calls for a rigid salary cap of $258.2 million by 2028 alongside a salary floor of $180.2 million, utilizing average annual values for luxury tax payrolls. Under the terms, teams could drop as low as 90% of the floor—amounting to $162.18 million in 2028—provided they spend the full floor amount across a three-year period.
League Officials Delay Cap Rollout for Offseason Transition
League officials acknowledged that front offices require a full offseason to restructure operations around a strict cap-and-floor model. Glen Caplin, speaking as a spokesperson for MLB, stated that the delayed rollout creates a smoother transition without postponing core benefits for athletes.
Those promised benefits include an earlier path to free agency, an elevated minimum salary of $1 million, a 30% expansion in the pre-arbitration bonus pool, and transaction reforms designed to limit roster churn. The current five-year collective bargaining agreement, struck in March 2022 following a 99-day lockout, expires on December 1.
MLB Proposes Pushing Salary Cap Start Back to 2028 MLB owners now want a $258.2 million salary cap and $180.2 million floor to begin in 2028, with the labor deal set to expire December 1.https://t.co/Fcy0xVAlfQ pic.twitter.com/VLGpTThVjT
Union Opposes First Formal Salary Cap Proposal Since 1994
Tuesday’s proposal marks the first time league management has formally tabled a salary cap since the contentious 1994 negotiations that triggered a seven-and-a-half-month player strike and wiped out the World Series. The players’ union maintains its long-standing stance that a salary cap remains a non-starter.
In a formal statement, the union criticized the proposal as an attempt by owners to dismantle the existing market structure and inflate franchise valuations. The players’ association argued that the plan replaces market principles with a zero-sum mechanism that harms mid-tier earners and eliminates competitive advantages for smaller-market franchises, while also cutting $400 million from amateur signing bonuses by 2027.
Payroll Adjustments Across Franchises
Projections shared by management indicate the stark divide across the league under the proposed 2028 framework. Eight organizations would need to slash existing payrolls by a combined $528 million to clear the cap ceiling: the Boston Red Sox, Chicago Cubs, Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia Phillies, San Diego Padres, and Toronto Blue Jays.
Conversely, twelve franchises would need to boost spending by a combined $636 million to hit the proposed floor. That group includes the Oakland Athletics, Chicago White Sox, Cincinnati Reds, Cleveland Guardians, Colorado Rockies, Miami Marlins, Milwaukee Brewers, Minnesota Twins, Pittsburgh Pirates, St. Louis Cardinals, Tampa Bay Rays, and Washington Nationals.
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