Major League Baseball owners have proposed a salary cap for the first time since the 1994-95 strike, countering the players' union's initial CBA proposal with a plan designed to reshape the sport's economic landscape.
According to reports, the owners' proposal sets a salary cap at $245.3 million and a payroll floor at $171.2 million. High-spending teams like the Los Angeles Dodgers, New York Mets, and New York Yankees currently exceed that cap, while low-spending teams like the Miami Marlins and Cleveland Guardians would need to significantly increase payroll to meet the floor.
A key element of the proposal is the centralization of local media revenue, to be shared equally among all 30 teams with players receiving a 50-50 split. This would eliminate the current revenue-sharing system and, per MLB spokesman Glen Caplin, address fan concerns about local TV blackouts.
Union leader Bruce Meyer has already rejected the concept, stating caps do not lower ticket prices or eliminate tanking. The players' counter-proposal focused on penalizing low-spending teams with a "competitive-integrity tax" and raising the luxury tax threshold to $300 million, while raising the minimum salary from $780,000 to $1.5 million.
The current CBA expires December 2, and negotiations are expected to intensify after the 2026 season concludes.