MLB pushes salary cap start to 2028

Major League Baseball proposed delaying the implementation of a salary cap and floor until the 2028 season on November 3. The league argues this timing allows teams to prepare their rosters and payrolls during a complete offseason. The current competitive balance tax and revenue sharing structure would remain in effect for the 2027 season. This move is part of ongoing negotiations for a new collective bargaining agreement.

Glen Caplin, an MLB spokesman, stated that clubs need a full offseason to operate within the new financial system. He noted that the current offseason is already underway, making a 2027 start difficult. Caplin said, "We recognize that clubs will need a full offseason to prepare to operate within the cap and floor system. Therefore, with this offseason already underway, we proposed today to begin the cap and floor system in 2028." He added that this approach would allow a smoother transition.

The league also increased its proposed financial thresholds. The salary cap is now set at $258.3 million, while the salary floor is $180.2 million. In June, MLB had proposed a cap of $245.3 million and a floor of $171.2 million. The league indicated it is willing to discuss additional phase-in scenarios with the players' union.

The salary cap remains the central point of contention in these talks. Team owners view the cap as necessary to protect franchise values, noting that MLB is the only major North American sports league without such a limit. Players and the union have generally resisted the cap, viewing it as a primary obstacle to a new deal. The collective bargaining agreement governs the relationship between players and owners, including minimum salaries, free agency rules, and revenue sharing.

In late September, an ESPN poll of current players revealed strong opposition to the cap. Sixteen players expressed firm resistance, while five said they were open to further discussion. A National League starting pitcher entering arbitration said he was not open to the cap. An American League catcher entering arbitration said he needed more information but might listen. The union hopes to maintain unity against the cap, though owners are looking for divisions between lower-salaried players and high-earning veterans.

Previous proposals have been tied to the acceptance of the salary cap. In October, MLB suggested a 154-game season with a standard off day each week. The league also proposed extending the Division Series to seven games. In August, the league proposed changing roster rules, including setting weekly rosters on Mondays and allowing 14 pitchers on a 26-man roster. Bruce Meyer, the interim head of the MLB Players Association, criticized some of these changes. He said an artificial free agency window would reduce player leverage.

The players' union counter-proposed changes to the draft in July. They want to preserve the 20-round format and move the draft back to June. The union also proposed increasing signing bonus pools for lower-revenue clubs. These proposals serve as a response to the league's earlier demands regarding draft eligibility and slot bonuses.

Time is a critical factor in these negotiations. A new agreement is needed before mid-March 2027 to avoid delaying or shortening the 2027 season. If a lockout extends into late May and causes a loss of 60 or more games, national broadcast contracts may be extended through 2029. This would delay the league's plan to centralize streaming rights and share those revenues equally among teams.