MLB Delays Proposed Salary Cap Until 2028 Season

Major League Baseball has proposed postponing its planned salary cap until the 2028 season as negotiations with the MLB Players Association intensify ahead of the current collective bargaining agreement's expiration on December 1. The proposal would preserve other elements of the league's labor offer for 2027 amid the growing possibility of a player lockout.

According to ESPN, the league presented the revised timeline as teams faced uncertainty surrounding the opening of free agency on Monday and the potential disruption caused by a labor dispute. The delay is intended to give teams and players more time to adjust to the proposed financial system.

MLB announced the proposed change in a social media statement, emphasizing that postponing the salary cap would not require delaying other player benefits.

"Starting in 2028 would allow a smoother transition into the cap and floor system without delaying key player benefits," MLB said in its social media announcement.

The revised proposal includes a salary cap of $258.2 million and a minimum payroll floor of $180.2 million for the 2028 season. Sources told ESPN that these figures were presented to the union during a meeting on Tuesday.

The proposed figures represent an increase from the league's initial targets of a $245.3 million cap and a $171.2 million floor. According to ESPN, the financial framework reflects MLB's proposed 50-50 revenue split.

Despite the proposed postponement, the league intends to retain its competitive-balance-tax thresholds for the 2027 season. The mechanism, commonly known as the luxury tax, imposes financial penalties on teams that exceed specified payroll limits.

The MLB Players Association has consistently opposed the introduction of a salary cap, making the issue a central obstacle in negotiations. Union officials have argued that accepting the system would significantly reduce players' earnings.

According to statements from union officials cited by ESPN, players could lose more than $1 billion if they agreed to a salary cap.

The disagreement leaves both sides facing a difficult path toward a new labor agreement. The existing collective bargaining agreement is scheduled to expire on December 1, raising the possibility of a lockout as MLB continues pursuing a salary cap and payroll floor.