Major League Baseball's New Salary Cap Proposal Is As Shady As Its Old One

Key Points:

• Major League Baseball has revised its proposed salary cap-and-floor plan, delaying implementation from 2027 to 2028 to give teams more preparation time amid ongoing labor disputes.
• The proposed salary cap is projected at $258.2 million with a floor of $180.2 million, aiming for a 50-50 split of league revenue between players and owners, though details depend heavily on revenue definitions and calculations.
• Owners want to deduct stadium costs from revenue before splitting, which could significantly reduce players' share, and also count amateur signing bonuses toward the players' revenue split, potentially limiting major league player earnings.
• The MLB Players Association argues that players currently receive over 50% of league revenue and claim the cap would cut player salaries by $500 million; the proposal also includes holding up to 10% of salaries in escrow to adjust future revenue shares.
• Additional elements of the proposal, such as raising the minimum salary to $1 million and earlier free agency access, are part of negotiations but do not inherently require a salary cap to promote competitive balance.