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MLB Owners Coalesce Around Hard Salary Cap as 2027 Lockout Threat Grows

Management sources describe concrete cap mechanics taking shape, raising stakes for talks once the CBA expires in December 2026.

Overview

  • Owners are preparing a cap push that some executives say could jeopardize the 2027 season, with ESPN reporting they are "ready to burn the f---ing house down" to get it.
  • Reporting from The Athletic describes a likely opening proposal built on an NHL-style hard cap with a roughly $160 million payroll floor and $240 million ceiling plus phased implementation and limits on contract length.
  • The MLB Players Association has rejected any cap, with past statements from Tony Clark reaffirming the stance and union official Bruce Meyer disputing owners’ competitive-balance claims.
  • The Dodgers’ record spending and use of deferrals, highlighted by recent headline deals and a 2026 luxury-tax payroll reported around $401 million, have intensified owner frustration, while Rob Manfred acknowledged fan concerns and ongoing RSN revenue strains at owners meetings in Palm Beach.
  • Alternatives and penalties are being floated, including Scott Boras’s call for a centralized national media-rights model to boost revenues and a podcast proposal to tax sub‑threshold payrolls that Jeff Passan endorsed, as analysts warn a higher floor and shorter player-control timelines could squeeze clubs like the Reds, Cardinals and Pirates.