MLB seeks to impose a salary cap and limit contracts to five years
Major League Baseball introduced a proposal that would limit most free agent contracts to five years and 15% of a team’s salary cap, in addition to eliminating deferred compensation. The move, detailed Thursday in a negotiating session, is likely to spark a showdown with the players’ association.
The union responded harshly. Bruce Meyer, his boss, said in a statement:
“These deceptive offers are designed to look like upgrades, but they have little or no value, since they are expressly conditioned on an agreement with the league’s salary cap system, which eliminates the free market.”
The league also proposed raising the minimum salary from $780,000 to $1 million for players with two years of service, and raising the pre-arbitration bonus pool from $50 million to $65 million next year, and to $75 million by 2032.
As part of the plan, MLB would agree to advance free agency one year for players who turn 30, but conditional on the salary cap. The proposal includes a payroll floor of 171.2 million and a ceiling of 245.3 million for 2026, figures that would impact teams like the Dodgers, whose current payroll exceeds 415 million.
Glen Caplin, MLB spokesman, stated:
“The biggest issue fans want resolved is the payroll disparity. Every other major US sport has addressed this issue. The proposal levels the playing field.”
Negotiations began on May 13 to replace the agreement that expires on December 1. Owners are expected to impose a lockout in December if there is no progress, as occurred in 2021-22. Meyer warned: “Attempts to pit players against each other have failed in the past and will fail again.”
MLB would also prohibit deferred compensation, a practice used by the Dodgers, who owe nearly $1.1 billion in future payments to 10 players. Additionally, it would implement a “franchise player” system similar to the NBA, with specific salary caps based on years of service.
