MLB owners counter players’ union’s proposal with salary cap for first time since 1994-95 strike
Major League Baseball’s owners have submitted a proposal to install a $245.3 million salary cap – the first such management offer in collective bargaining since the 1994-95 players’ strike – as both sides exchange opening positions ahead of the current agreement’s Dec. 2 expiration. The proposal also sets a payroll floor of $171.2 million and includes a 50-50 split of centralized local media revenue equally distributed across all 30 clubs, replacing the existing revenue-sharing system.
The owners’ counterproposal follows the MLB Players’ Association’s own opening bid, which focused on penalizing low-spending franchises through what it described as a “competitive-integrity tax” and called for raising the luxury-tax threshold from its current level to $300 million. The union simultaneously sought to increase the minimum player salary from $780,000 to $1.5 million. MLBPA executive Bruce Meyer responded sharply to the cap proposal, stating that owners were seeking to control costs and maximize franchise values at players’ expense, and reiterated the union’s longstanding position that salary caps harm players at every level and do not benefit fans through lower ticket prices or reduced tanking.
Several high-payroll clubs – including the Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia Phillies, and Toronto Blue Jays – would currently exceed the proposed cap, while franchises such as the Miami Marlins, Tampa Bay Rays, Cleveland Guardians, and Chicago White Sox would need to raise payrolls to meet the floor. Owners acknowledged a phase-in schedule would be negotiated to give top-spending clubs time to comply. The proposal is structured to run seven years and preserves guaranteed contracts, with an escrow system to be established jointly with the union.
The last MLB work stoppage concluded in March 2022 after a 99-day lockout, with both sides reaching agreement before the season was significantly disrupted. Formal negotiations are expected to intensify once the 2026 season concludes, with the Dec. 2 deadline providing the hard boundary for a new deal. The gap between the two sides on the cap question alone – the union has said it will never accept one – signals a prolonged and contentious bargaining process ahead.
