MLB Owners Propose Soft Salary Cap and 50/50 Revenue Split in Early CBA Talks

Major League Baseball owners proposed a salary cap system for the first time since June 1994 as part of early negotiations for the next labor agreement. 2 million while requiring a 50/50 split of baseball-related revenues. The 2026 proposal also includes sharing local media rights among all 30 clubs, but only if the salary cap is adopted.

In January 2026 the owners approved a revenue-sharing plan that is contingent on implementing the cap. A soft-cap system would phase in over four years. The 1994 proposal likewise called for a 50/50 revenue split and local broadcast revenue sharing to narrow the gap between high- and low-revenue clubs.

Limits in that plan were based on league-wide revenues from television, gate receipts, and merchandise, with penalties for exceeding the cap that included fines or loss of draft picks. MLB Commissioner Rob Manfred said players received 47 percent of revenue in 2024, compared with 63 percent when he began as chief labor negotiator in 2002.

Bruce Meyer, interim executive director of the MLB Players Association, said the current split is closer to 50/50.

2 percent of baseball-related revenues. The MLBPA rejected the cap proposal, stating it would lead to the elimination of guaranteed contracts. The union added that within a cap system, one dollar awarded to one player would come from another, pitting players against each other.

The 1994 proposal also eliminated salary arbitration and delayed free agency until five years of service time. The union rejected that plan as well, and the resulting strike lasted nearly eight months into 1995, canceling the 1994 postseason and World Series. A lockout appears likely at midnight on December 1.

Further movement is not expected until closer to the March deadline that would affect 2027 spring training and the regular season.