Major League Baseball proposed a hard salary cap Thursday for the first time since 1994, which resulted in a players’ strike that cancelled the World Series, in their first proposal to the MLB Players’ Association in New York.
MLB proposed a $245.3 million salary cap, including benefits, which is lower than eight current MLB clubs’ payroll, requiring a total reduction in payroll of $578 million.
In return, MLB proposed a $171.2 million salary floor, which would require 12 teams to increase their payroll by a combined $617 million.
In the last collective bargaining talks in 2021, MLB offered a four-tier luxury tax system beginning at $180 million, with also a salary floor at $100 million. It was flatly rejected by the union, and MLB implemented a lockout that lasted 99 days.
MLB’s last lockout took place in the 2021-22 offseason.
In this proposal, MLB said that players would immediately receive 50% of baseball revenue and in future years. MLB revenue has increased by 247% since 2003, according to MLB calculations, while player payroll has increased by 149%.
The salary cap, MLB insists, would increase competitive balance in the sport.
“Ultimately the game is about hope and competition and too many fans in too many markets have too little hope their team has a fair chance to win,” MLB spokesman Glen Caplin said in a statement. “Fans overwhelmingly support a salary cap and floor like in the other leagues because they don’t believe a $446 million spending gap from top to bottom is a fair fight.
“Our salary cap and floor proposal levels the playing field while sharing baseball revenue with the players 50/50 as we grow the game together. Further, by sharing media revenue equally as part of our proposal, we can address another top fan concern of local TV blackouts. We look forward to working with the MLBPA during the bargaining process to continue improving the game for the fans.”
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Athletics Lawrence Butler is tagged out by Chicago White Sox third baseman Miguel Vargas as he tires to extend his double into a triple during the eighth inning at Sutter Health Park on April 18, 2026.
(Scott Marshall, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Athletics Lawrence Butler is tagged out by Chicago White Sox third baseman Miguel Vargas as he tires to extend his double into a triple during the eighth inning at Sutter Health Park on April 18, 2026.
(Scott Marshall, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Cleveland Guardians mascot Slider interacts with fans during game against the Baltimore Orioles at Progressive Field on April 17, 2026.
(David Richard, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Washington Nationals right fielder Daylen Lile attempts to catch a ball hit for a single by the Pittsburgh Pirates’ Jake Mangum during the first inning at PNC Park on April 16, 2026. The Nationals won the game, 8-7.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Milwaukee Brewers catcher Gary Sanchez wears a special chest protector to commemorate Jackie Robinson Day during the game against the Toronto Blue Jays at American Family Field on April 15, 2026.
(Benny Sieu, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 13: The Pittsburgh Pirates’ Spencer Horwitz celebrates a home run in the dugout while wearing a welder’s hood during the 16-5 win over the Washington Nationals at PNC Park.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 12: Philadelphia Phillies mascot, The Phanatic, entertains fans with local team mascots for a birthday celebration before the game against the Arizona Diamondbacks at Citizens Bank Park.
(Kyle Ross, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 11: The Tampa Bay Rays’ Jonathan Aranda (left) celebrates with Ryan Vilade after hitting a walk-off single against the New York Yankees in the 10th inning of a 5-4 win at Tropicana Field.
(Nathan Ray Seebeck, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Cleveland Guardians’ Jose Ramirez acknowledges the fans after becoming the team’s all-time leader in games played against the Kansas City Royals at Progressive Field on April 6, 2026.
(David Dermer, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A rainbow appears during the fourth inning during the game between the San Diego Padres and Pittsburgh Pirates at PNC Park on April 6, 2026.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A fan dresses as the Pope claps during the first inning of the game between the Chicago White Sox and Toronto Blue Jays at Rate Field on April 5, 2026. The White Sox won the game, 3-0, to complete a three-game sweep of the Blue Jays.
(Matt Marton, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Pittsburgh Pirates’ Konnor Griffin celebrates with a traffic cone after making his major-league debut in a 5-4 defeat of the Baltimore Orioles at PNC Park on April 3, 2026.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A young Red Sox fan meets Tessie the Boston Red Sox mascot before the Red Sox’s home opener against the San Diego Padres at Fenway Park on April 3, 2026.
(Eric Canha, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
(Jayne Kamin-Oncea, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Miami Marlins shortstop Otto Lopez (6) and center fielder Jakob Marsee celebrate a victory against the Chicago White Sox at loanDepot Park on April 1, 2026.
(Jim Rassol, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Fans try to catch a solo home run hit by the San Francisco Giants’ Matt Chapman as San Diego Padres left fielder Nick Castellanos looks on during the third inning at Petco Park on March 31, 2026.
(Denis Poroy, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Philadelphia Phillies mascot The Phillie Phanatic entertains fans during the game against the Washington Nationals at Citizens Bank Park on March 31, 2026.
(Kyle Ross, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Toronto Blue Jays’ Kazuma Okamoto gets doused with ice water by teammates after a win over the Athletics at Rogers Centre on March 29, 2026.
(John E. Sokolowski, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Cincinnati Reds’ Eugenio Suárez blows a bubble as he waits to bat against the Boston Red Sox at Great American Ball Park on March 28, 2026.
(Aaron Doster, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The St. Louis Cardinals’ JJ Wetherholt is doused with water by teammates after hitting a walk-off two-run single against the Tampa Bay Rays during the 10th inning at Busch Stadium on March 28, 2026.
(Jeff Curry, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Fans react as the Milwaukee Brewers’ Jake Bauers homers against the Chicago White Sox at American Family Field on March 26, 2026.
(Jovanny Hernandez, Milwaukee Journal Sentinel)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Two F-35C planes from Air Test and Evaluation Squadron NINE Detachment Edwards Air Force Base perform a flyover before the Opening Day game between the Arizona Diamondbacks and Los Angeles Dodgers at Dodger Stadium on March 26, 2026.
(Kirby Lee, Imagn Images)
The union argues that competitive balance isn’t a problem considering that small-market clubs like the Milwaukee Brewers, Tampa Bay Rays and Cleveland Guardians are currently leading their respective divisions. The Brewers, who reside in baseball’s smallest market, won the most games in MLB last season with 97, while winning the NL Central division for the third consecutive year.
MLB’s proposal also said that all revenue from local media will be centralized and shared equally among clubs while players will receive 50% of any increase in future media revenue with the national TV contracts expected to expire after the 2028 season.
The CBA is scheduled to expire on Dec. 1, and if no agreement is reached, MLB is expected to implement another lockout.
This article originally appeared on USA TODAY: MLB payrolls for labor war with owners asking for hard salary cap
