MLB Pushes Salary Cap Start to 2028

Major League Baseball has proposed starting a team salary cap and minimum spending floor in 2028 rather than next season, giving clubs another offseason to adjust their payrolls. The proposed cap is $258.2 million, and the floor is $180.2 million, calculated using luxury-tax payrolls and average annual contract values.

The league said the delay would make the transition easier while allowing other proposed changes to begin in 2027. Those include earlier free agency for some players, a $1 million minimum salary for players who have spent two or more seasons in the majors, a 30% boost to the pool of bonuses for players not yet eligible for arbitration and changes to roster transactions. MLB also proposed a one-time player bonus funded with money currently designated for 401(k) accounts.

Under the league’s estimate, eight teams would need to cut a combined $528 million in payroll to meet the cap, while 12 would have to spend a total of $636 million more to reach the floor. The existing system for sharing revenue and assessing competitive-balance taxes would remain in place for 2027.

MLB said it would accept the union’s proposal to reduce the time to free agency from six years to five for players who are at least 30, while retaining qualifying offers for that group. It would also eliminate qualifying offers for other free agents. The league is open to discussing a gradual introduction of the cap and floor.

The players’ association has opposed a salary cap and has proposed changes to revenue sharing instead. The labor contract expires on December 1, and owners are expected to begin a lockout of the players. A new agreement would be needed before the proposed changes could take effect.