Major League Baseball proposes delaying salary cap implementation to 2028 in talks with players

NEW YORK (AP) — Major League Baseball officials suggested on Tuesday that they will delay implementing a salary cap until the 2028 season. Owners argued that teams have too many commitments for the upcoming season, making it difficult to cut spending rapidly enough for a cap to take effect this year.

The proposed hard cap for 2028 is $258.2 million, while a mandatory floor is set at $180.2 million. Luxury tax payrolls, calculated using average annual values, will determine the amount teams can exceed the cap.

MLB spokesman Glen Caplin stated that the proposal allows teams to prepare for the new cap and floor system without disrupting key player benefits. These benefits include earlier free agency, a $1 million minimum salary, a 30% boost to the pre-arbitration bonus pool, and transactional reforms designed to reduce roster turnover.

The five-year labor agreement between MLB and the players expires on December 1, and a lockout of the union is expected. MLB has not proposed a salary cap since the 1994 strike. The players' association has previously stated that they would never accept a cap.

As part of the plan, MLB proposed a one-time bonus payment for players, funded by luxury tax proceeds earmarked for players' 401(k) accounts. Players who have at least 172 of the 187-day regular season under their belts would receive $285,000, while those with 135 days would get $213,400, $142,300 for 91 days, and $71,100 for 27 days.

Eight teams would need to reduce their current payroll by a combined $528 million to meet the 2028 cap: Boston, Chicago Cubs, Los Angeles Dodgers, New York Mets and Yankees, Philadelphia, San Diego, and Toronto. Conversely, 12 teams would need to increase their spending by $636 million to reach the floor: Athletics, Chicago White Sox, Cincinnati, Cleveland, Colorado, Miami, World Series champion Milwaukee, Minnesota, Pittsburgh, St. Louis, Tampa Bay, and Washington.

MLB stated that they would continue using the current luxury tax system and revenue-sharing plan for 2027 with the same thresholds and tax rates as in 2026. However, MLB media revenue would be centralized in 2028. The owners agreed to the players' proposal to lower the service time for free-agent eligibility from six seasons to five for players aged 30 and above, but the team the player last played for would retain the right to make a qualifying offer as per current free-agent rules. If a player rejects the qualifying offer, they would become eligible for salary arbitration.