{"id":1440,"date":"2026-05-28T23:07:09","date_gmt":"2026-05-28T23:07:09","guid":{"rendered":"https:\/\/bostonrelocationinsider.com\/?p=1440"},"modified":"2026-05-28T23:07:09","modified_gmt":"2026-05-28T23:07:09","slug":"mlb-owners-propose-a-salary-cap-for-the-first-time-since-baseballs-1994-95-strike","status":"publish","type":"post","link":"https:\/\/bostonrelocationinsider.com\/?p=1440","title":{"rendered":"MLB owners propose a salary cap for the first time since baseball\u2019s 1994-95 strike"},"content":{"rendered":"<article>\n<div>\n<p><span>Major League Baseball owners made their long-expected salary cap proposal to the players\u2019 association on Thursday, a system the union has vowed never to accept, setting the sides on course for a confrontation that threatens the 2027 season and perhaps beyond.<\/span><\/p>\n<p>Read more <a href=\"https:\/\/bostonrelocationinsider.com\/?p=1438\">Ceddanne Rafaela earned his spot higher in Red Sox batting order with more discipline at the plate<\/a><\/p>\n<p><span>Baseball owners hadn\u2019t proposed a firm cap since 1994. Their effort prompted a 7\u00bd-month strike that forced the cancellation of the World Series for the first time in 90 years.<\/span><\/p>\n<p><span>MLB\u2019s proposal would cap spending in 2027 at $245.3 million, using figures for luxury tax payrolls that include $20.1 million for benefits and the pre-arbitration bonus pool, and establish a payroll floor of $171.2 million. The Dodgers, baseball\u2019s biggest spenders, had a $415.2 million payroll on Opening Day this year \u2014 around $170 million over the proposed cap.<\/span><\/p>\n<\/div>\n<div>\n<p><span>\u201cThe cap is pretty much a nonstarter,\u201d Pirates outfielder Bryan Reynolds said.<\/span><\/p>\n<p><span>Owners said they would discuss a phase-in schedule that would give teams like the Dodgers time to comply with the cap and an escrow system with the union as part of a proposed seven-year deal, that all current contracts would remain guaranteed and there would be no prohibition of guaranteed contracts under the cap system.<\/span><\/p>\n<div>\n<div>\n<div><span>Get Starting Point<\/span><\/div>\n<div><span>A guide through the most important stories of the morning, delivered Monday through Friday.<\/span><\/div>\n<div>\n<div><label>Enter Email<\/label><\/p>\n<div><button>Sign Up<\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><span>MLB said it would centralize local media revenue from the 30 teams equally and give players a 50-50 split as part of a proposal that would eliminate the current revenue-sharing plan among the clubs.<\/span><\/p>\n<p><span>\u201cOur salary cap and floor proposal levels the playing field while sharing baseball revenue with the players 50\/50 as we grow the game together,\u201d MLB spokesman Glen Caplin said in a statement. \u201cFurther, by sharing media revenue equally as part of our proposal, we can address another top fan concern of local TV blackouts.\u201d<\/span><\/p>\n<div><span>Related<span>: <\/span><\/span>Ceddanne Rafaela earned his spot higher in Red Sox batting order with more discipline at the plate<\/div>\n<p><span>Baseball\u2019s current five-year deal, agreed to in March 2022 after a 99-day lockout, expires Dec. 2. While a lockout next winter is expected, talks are not likely to intensify until late February or early March 2027, when the possibilities of losing regular-season games and revenue near. If regular-season games are lost, negotiations may become a standoff of which side can tolerate the most economic loss.<\/span><\/p>\n<p><span>\u201cBillionaire owners are not seeking to cap their profits or asset values, only player salaries,\u201d union head Bruce Meyer said in a statement. \u201cThis isn\u2019t out of generosity or a desire to protect the game\u2019s well-being. It\u2019s a play to control costs, increase profits and maximize franchise values \u2014 all at the expense of players past, present and future.\u201d<\/span><\/p>\n<p><span>Based on 2026 opening day figures, eight teams would have to cut payroll to get under the cap. The teams over are the two-time reigning World Series champion Dodgers, Mets ($379.2 million), Yankees ($339.6 million), Blue Jays ($319.5 million), Phillies ($315.2 million), Red Sox ($263.7 million), Padres ($260.1 million), and Braves ($247.9 million).<\/span><\/p>\n<p><span>Twelve teams would be required to increase payroll by a total of $617 million based on 2026 numbers: Marlins ($81.8 million), Guardians ($95.7 million), Rays ($108.2 million), the White Sox ($108.6 million), Cardinals ($114.4 million), Nationals ($119.1 million), Pirates ($122.6 million), Twins ($125.6 million), Brewers ($130.9 million), Athletics ($139.2 million), Rockies ($142.2 million), and Reds ($148.8 million).<\/span><\/p>\n<p><span>Owners and the union agreed to a luxury tax in 2003 designed to slow spending, but teams feel it has had little or no impact on the Dodgers and Mets in recent years. The last small-market MLB club to win a World Series was Kansas City in 2015, although the Guardians, Rays, and Brewers all lead their divisions as of Thursday, while the Mets and Red Sox are in last place.<\/span><\/p>\n<p>Read more <a href=\"https:\/\/bostonrelocationinsider.com\/?p=1436\">NBA\u2019s board of governors passes anti-tanking changes to draft lottery<\/a><\/p>\n<p><span>MLB said its revenue has grown by 247 percent since 2003 and player payroll has increased by 149 percent in that span.<\/span><\/p>\n<div><span>Related<span>: <\/span><\/span>Baseball players ask for expanded free agency, salary arbitration rights, almost doubling minimum<\/div>\n<p><span>Deputy commission Dan Halem and MLB executive vice president of baseball operations Morgan Sword presented the cap plan to players during a bargaining session at the commissioner\u2019s office, one day after the union made its economic proposal. Owners say a cap is needed to improve competitive balance and restrain wealthy teams from assembling starrier rosters than their smaller-market brethren.<\/span><\/p>\n<p><span>Players want expanded free agency and salary arbitration rights along with almost doubling the major league minimum, increasing the money high-revenue teams share with the less-wealthy clubs and establishing penalties for teams that drop below payroll floors. The union said MLB\u2019s proposal did not address those issues.<\/span><\/p>\n<p><span>Other US major sports leagues operate under a cap. The NBA had a cap in its initial season in 1946-47, then dropped that and began its modern version in 1984-85. NFL players and owners adopted a cap for the 1994 season, and the NHL did so in 2005-06 after a lockout wiped out the entire 2004-05 season.<\/span><\/p>\n<p><span>The Dodgers shattered MLB\u2019s spending record with a combined $515 million in payroll and luxury tax last year en route to their second straight World Series title. Their total was seven times the $68.7 million payroll of the Marlins, the lowest-spending team, and more than the payrolls of the bottom six clubs combined.<\/span><\/p>\n<p><span>Players say a cap would hurt them and enrich owners, and they say they will never agree to one. Without a cap, MLB stars have landed lucrative, guaranteed contracts that outpace what the biggest stars in other US sports leagues make. Juan Soto\u2019s $765 million, 15-year contract with the Mets is believed to be the biggest ever in team sports and is far greater than the largest deals in the NFL (Patrick Mahomes at $450 million over 10 years) and NBA (Jayson Tatum at $314 million over five years).<\/span><\/p>\n<div><span>Related<span>: <\/span><\/span>Finn: I\u2019ve been following the Red Sox for nearly 50 years, and this might be the worst offense I\u2019ve seen<\/div>\n<p><span>MLB\u2019s last salary cap proposal in 1994 offered players a 50-50 split of revenue in a system that would have forced teams to maintain payrolls of 84-110 percent of the average. Salary arbitration would have been eliminated and the threshold for free agency would have been lowered from six years\u2019 major league service to four \u2014 with the provision that a player\u2019s former club could match any offer until he had six years.<\/span><\/p>\n<p><span>MLB\u2019s offer came on June 14 that year, and players struck on Aug. 12. MLB withdrew the cap proposal the following Feb. 6 after pressure by the National Labor Relations Board. The strike ended on March 31 after US District Judge Sonia Sotomayor \u2014 now a Supreme Court Justice \u2014 issued an injunction restoring the work rules of the expired labor contract. Two days later, owners accepted the union\u2019s offer to return to work without an agreement. A deal wasn\u2019t reached until 1997.<\/span><\/p>\n<p><span>\u201cFor generations, our members have fought against cap systems because they harm players at all levels, erode or eliminate contractual guarantees, pit player against player, lead to more work stoppages, not less, and get worse for players over time,\u201d Meyer said. \u201cCaps don\u2019t lower ticket prices for fans, eliminate tanking or ensure teams are run with equal competence. They suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity.\u201d<\/span><\/p>\n<p>Read more <a href=\"https:\/\/bostonrelocationinsider.com\/?p=1434\">Collins responds to Platner saying that she \u2018voted to send me to Iraq\u2019<\/a><\/p>\n<p><span><i>AP freelance writer John Perrotto contributed to this report.<\/i><\/span><\/p>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>The players&#8217; association has vowed to never accept a salary cap, setting the stage for a confrontation that threatens the 2027 season.<\/p>\n","protected":false},"author":1,"featured_media":1439,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sport"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MLB owners propose a salary cap for the first time since baseball\u2019s 1994-95 strike - 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