LOS ANGELES — Major League Baseball proposed a salary cap of $245.3 million and a salary floor of $171.2 million beginning in the 2027 season during labor negotiations with the MLB Players Association. The current collective bargaining agreement is set to expire on December 1, 2026, and many in the industry expect owners to implement a lockout if a new agreement is not reached by that date.
Bruce Meyer, interim executive director of the MLB Players Association, sharply criticized the proposal, saying, "I thought they would try harder to make it look good, and they didn’t even do that." He added, "We do not accept the premise that there’s some existential crisis going on." Meyer argued that payroll differences are not solely caused by large-market teams spending too much, but also by some organizations choosing not to invest heavily in their rosters.
The union estimates that if MLB’s salary cap proposal had been in place for the 2026 season, players collectively would have earned more than $500 million less. Meyer said MLB’s projections appear to assume a reduction in signing bonuses for domestic and international amateur prospects, even though MLB has not formally proposed changes to amateur compensation. He likened a salary cap to "Big Brother" telling a team it can't sign a player it wants to.
Meyer argued that MLB’s proposed 50-50 revenue split includes billions of dollars in deductions before the split is calculated, resulting in players receiving less than their current share. He also noted that luxury tax payments are often included in payroll disparity discussions even though a portion of those funds is redistributed to smaller-market clubs. Citing the San Diego Padres, Milwaukee Brewers, and Tampa Bay Rays as examples, Meyer pointed to small-market teams that have remained competitive through investment.
MLB spokesperson Glen Caplin stated that the proposal would create a more level playing field while guaranteeing players a 50 percent share of baseball revenue. Caplin said major-league players would receive more compensation in the first year of the proposed system than they currently earn and added that MLB is willing to hear a counterproposal from the union.
Meyer dismissed the notion that payroll disparity causes fans of lower-spending teams to lose hope, noting that Cincinnati reached the 12-team playoffs in 2025 while the New York Mets did not. He said, "At a time of exploding popularity, growth and interest, the owners’ goal is more money in the pockets of owners."