Major League Baseball owners proposed a hard salary cap to the players’ union during a Thursday meeting — and New York’s high-priced teams would feel the brunt of it.
The proposal, the first explicit salary cap push since the 1994 strike, would require every MLB team to maintain a payroll between $171.2 million and $245.3 million beginning in 2027, ESPN reported.
The plan also includes a 50/50 split of league revenue between players and owners, allowing for future increases to both the floor and cap.
“Fans overwhelmingly support a salary cap and floor like other leagues because they don’t believe a $446 million spending gap is a fair fight,” MLB spokesperson Gleb Caplin said in a statement. “Our proposal levels the playing field while splitting baseball revenue 50/50 with players as the game grows.”
Under the proposal, 15 teams would need to raise payroll while high-spending clubs such as the Mets, Dodgers and Yankees would need to cut significantly.
The Mets, who carry MLB’s highest payroll at roughly $334 million this season, would sit nearly $89 million above the cap, while the Yankees would exceed it by about $46 million.
Additionally, the defending two-time World Series champion Dodgers, whose historic spending has been at the forefront of labor talks, were used as an example earlier in the week.
— Spotrac (@spotrac) May 28, 2026MLB has reportedly proposed a salary cap model to the MLBPA that would come with a $245.3M ceiling, & a $171.2M floor.
2026 Payrolls Above the Proposed Ceiling
NYM: +$88M
LAD: +$55M
NYY: +$46M
TOR: +$36M
PHI: +$36M
ATL: +$21M2026 Payrolls Below the Proposed Floor
MIA: -$92M…
“The MLBPA’s proposal would reduce the amount [of money] transferred to lower-revenue Clubs, weaken the Competitive Balance Tax, and lead to even more payroll disparity than exists today,” MLB said in a statement released on Wednesday.
“For example, under the Union’s proposal, the Dodgers would pay less in luxury tax payments, giving them an additional $70 million to spend on payroll.”
The proposal came one day after the Major League Baseball Players Association submitted its first CBA offer, which included expanded free agency and arbitration rights, a doubled minimum salary and changes to the luxury tax threshold.
MLBPA interim executive director Bruce Meyer blasted Thursday’s proposal, saying a salary cap would “suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity.”
“Yesterday, the MLBPA presented a comprehensive package of proposals designed to improve compensation for players at all levels, and to incentivize and reward competition on the field,” Meyer said in a statement. “The owners responded today with a demand for a salary cap system, something generations of players have fought against. The last time the owners made such an explicit push for a cap over 30 years ago — it led to the longest work stoppage in MLB history.”
Meyer added that salary caps suppress player earnings and fail to reduce ticket prices or eliminate tanking.
“Baseball is experiencing unprecedented momentum, and owners are enjoying record viewership, revenues and franchise values,” Meyer said. “Billionaire owners are not seeking to cap their profits or asset values, only player salaries.
“This isn’t out of generosity or a desire to protect the game’s well-being. It’s a play to control costs, increase profits and maximize franchise values — all at the expense of players past, present and future.
“We’ll continue our review of the owners’ proposal and stand ready to negotiate system improvements that benefit players and fans alike.”
If both sides are unable to reach an agreement on a new CBA by Dec. 1, it’s expected the league will see its first lockout since the 2022 campaign, which lasted for 99 days.
With the possibility of the lockout threatening the entire 2027 campaign, MLB owners have reportedly funded a $75 million-per-team war chest in the event no games are played.
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