Owners Propose Salary Cap After MLB Players Did Not

Major League Baseball owners on Thursday made their first true salary-cap proposal for the sport since the 1994 strike that wiped out the World Series. The plan presented to the players union would install a firm payroll range starting in 2027, with teams required to spend between $171.2 million and $245.3 million, including benefits. An MLB spokesperson framed it as a matter of fairness, ESPN reports, citing a $446 million gap between the highest and lowest spenders and touting a 50-50 revenue split with players, plus equal sharing of local media money among all 30 clubs.

The proposal would force 12 teams to boost spending to reach the floor and eight to trim payroll to stay under the cap. The seven-year proposal leaves major issues like free agency and arbitration untouched for now, as both sides focus on the basic economic framework. The union's opening bid this week called for higher tax thresholds and minimum salaries but no hard cap or floor. The players have said they'll never accept a cap, per the AP. Such an impasse could threaten the 2027 season and beyond. If no new collective bargaining agreement is in place by Dec. 1, per ESPN, owners are likely to lock out players—freezing trades, signings, and all contact with teams.