MLB Owners Propose Salary Cap and Floor Starting in 2027

Major League Baseball owners proposed a hard salary cap and floor to the players union on Thursday as part of negotiations for the next collective bargaining agreement. 3 million beginning in 2027. The figures include player benefits and would adjust upward as league revenues grow.

The proposal also calls for a 50-50 split of league revenues between owners and players. A centralized fund would pool local media revenues and distribute them equally among all 30 teams. League spokesperson Glen Caplin said in a statement that fans support a cap and floor because they view the current $446 million spending gap between highest- and lowest-spending teams as unfair.

Players union head Bruce Meyer said in a statement that owners seek to control costs and increase profits at players' expense. He added that union representatives will continue reviewing the proposal and remain ready to negotiate. The current CBA expires December 1.

If no agreement is reached, owners have indicated they are likely to lock out players, halting trades, free agency and other league business involving players. The sides are scheduled to meet again in the coming weeks. The league proposed a seven-year term for the next agreement.