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MLB Owners Propose Hard Salary Cap and Floor as Players Vow to Fight Back

The union says the owners’ plan would cut player pay and reshape team payrolls, raising the risk of a lockout before the current contract ends.

Overview

  • On Monday, June 1 the MLB Players Association publicly rejected the owners’ proposal and released an analysis saying the plan would cut collective player pay by about $500 million.
  • The owners’ opening offer would set a hard cap of $245.3 million, a floor of $171.2 million, and a 50/50 split of defined baseball revenue as the basis for pay.
  • If implemented, several high-spending clubs would have to reduce payroll while many low-spending teams would need large increases, with the Dodgers’ roughly $415 million opening-day payroll far above the proposed cap.
  • The players have countered with proposals that include a much higher minimum salary, a $150 million floor in one report, and raising luxury-tax thresholds toward $300 million to preserve free-market contracts.
  • Negotiations are entrenched and no comprehensive deal is scheduled, leaving the Dec. 1, 2026 CBA expiration as the likely point when a management lockout could begin and when outside pressure on talks could grow.