TORONTO – Major League Baseball proposed pushing back implementation of a salary cap to 2028 while implementing various benefits next year, its latest attempt to tempt the players’ association into engaging on an economic system it steadfastly rejects.
The latest offer, details of which were released Tuesday afternoon, suggests starting a cap with a floor of $180.2 million and a hard ceiling of $258.2 million after the 2027 season, giving clubs time to prepare for a more restrictive framework. Based on this season’s Competitive Balance Tax payrolls, eight teams — including the Toronto Blue Jays — would need to cut salary, while 12 clubs — the World Series champion Milwaukee Brewers and finalist Tampa Bay Rays among them — would need to spend more.
In theory, delaying the cap would also remove the uncertainty teams and free agents are operating under this off-season with the CBA due to expire Dec. 1. Some executives are wary of making moves that could tie their hands or force them into accommodations down the road.
As an inducement for the association to consider the offer, MLB said a number of player benefits would begin in 2027, including: free agency after five years of service instead of six for players at least 30 years old; elimination of the system that requires teams to forfeit a draft pick for signing a free agent that receives a qualifying offer; and a minimum salary of $900,000 with the chance to get it to $1 million through the pre-arbitration bonus pool.
Other economic elements of MLB’s original proposal would start next year, too.
The union, as it has historically, rejects a salary cap system and refuses to negotiate off proposals built around one, saying MLB’s initial proposals will restrict player rights and reduce compensation by billions. Back in May, players instead proposed raising the current Competitive Balance Tax threshold from $244 million to $300 million, and adding a new Competitive Integrity Tax for teams below a $150 million payroll.
With each side working off an entirely different framework, there’s been no path to progress on core economic issues, and MLB’s new offer is unlikely to shift that dynamic, although it does present some movement. The league’s previous offer included a floor of $171.2 million and a ceiling of $245.3 million, beginning in 2027, although the extra money may also reflect projections of increased revenue, too.
“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 per cent increase to the pre-arbitration bonus pool, and transactional reform that will reduce roster churn,” MLB spokesman Glen Caplin said in a release. “The projected salary cap and floor for 2028 continues to provide more money for major league players while levelling the playing field and giving more teams the ability to participate in the free-agent market and retain their homegrown stars so that every fan believes their team has a fair chance to win it all.”
The union didn’t immediately issue comment on the new proposal.
