MLB Proposes Five-Year Limit on Free-Agent Contracts

" The proposals are part of a salary-cap framework the league previously presented to the players' association. Under the plan, free agents changing teams could sign for a maximum of five years and 15 percent of a team's payroll, with 5 percent annual raises.

Teams retaining their own free agents could offer six-year deals.

A free agent moving teams this offseason could receive a maximum five-year, $202 million contract. A team keeping its own free agent could sign that player for six years and $265 million. The five-year limit applies only to free-agent years; players with less than one year of service could still sign with their current club for up to 12 years total.

If such a contract began in 2027, a player could receive 12 years and $500 million. The league also proposed a salary floor of $171.2 million and a ceiling of $245.3 million per team beginning in 2027.

The league seeks a 30 percent increase in the pre-arbitration bonus pool, raising it from $50 million to $65 million in 2027 and growing to $75 million by the end of the agreement. Players with fewer than two years of service who complete a full season would receive a new $100,000 bonus.

In 2025, 178 such players would have qualified for at least $100,000 under the existing pool, according to the league. MLB also wants to expand the Prospect Promotion Incentives program so clubs could earn up to two draft picks for developing top prospects.

"The biggest issue baseball fans want solved to strengthen the game is fixing the payroll disparity that leaves too many fans without hope of their team competing for a World Series title," a league spokesperson said. The players' association has rejected a hard salary cap and floor, instead proposing continued use of a luxury-tax threshold.