MLB Proposes Delaying Salary Cap Until 2028
Baseball's owners offered a later start for a salary cap and floor, with higher dollar limits. The players' union says its objections still stand.
Major League Baseball has offered to start its proposed salary cap and floor in 2028. But the players' union says the delay changes nothing about its opposition, and the collective bargaining agreement expires on Dec. 1.
The clock and the lockout
The owners are expected to lock out players at 11:59 p.m. ET on Dec. 1, when the agreement runs out. The previous lockout ended on March 10, followed by a three-week spring training. A similarly long stoppage would leave clubs too little time to become compliant with a cap.
What the league changed
The league announced the new proposal on Tuesday. It says the delay is meant to give teams more time to get payrolls in order. Spokesman Glen Caplin said the move would "allow a smoother transition" and would not hold up player benefits such as earlier free agency.
The dollar limits rose. The floor is now $180.2 million, up from $171.2 million in the June proposal. The cap is $258.2 million, up from $245.3 million.
The package keeps a $1 million minimum salary, a 30% bigger pre-arbitration bonus pool and rule changes meant to cut roster turnover. Only players with two or more years of service would get the $1 million minimum. All other players would be paid at least $900,000. In 2027 the existing competitive balance tax and revenue sharing rules would still apply.
Which teams are affected
FanGraphs calculations show four teams with more than $258.2 million on their 2027 books, counting arbitration projections. Twenty teams have less than $180.2 million.
The union's response
The MLB Players Association has repeatedly said it will not accept a cap and floor. It has proposed a revised revenue sharing system that would move more money from big-market to small-market teams.
After Tuesday's offer, the union accused owners of continuing to "propose blowing up the current system". It said a delay leaves the same negative impacts, including a large cut in player compensation and the elimination of fundamental player rights, including guaranteed contracts.
The league's argument
MLB says the cap is meant to improve competitive balance. Small-market Milwaukee beat small-market Tampa Bay in last week's World Series.
Our view
The delay answers a practical problem, since payroll planning takes a full offseason, but it does not touch the union's objection to a cap itself. The raised floor and cap numbers may add a second argument, since 20 teams currently sit below the proposed floor. The next signal is whether the union's revenue sharing counterproposal gets a response before Dec. 1.
Source: CBS Sports