Which MLB teams would have to cut payroll in latest salary cap proposal?
Key Points:
- Major League Baseball (MLB) proposed delaying the implementation of a salary cap to 2028, with a cap set at $258.2 million and a floor of $180.2 million, aiming to provide teams with clarity for the upcoming Collective Bargaining Agreement (CBA).
- The proposal includes raising minimum salaries to $1 million for players with at least two years of service, increasing the pre-arbitration bonus pool by $30 million, and reducing free agency eligibility from six to five years for players aged 30 and older, while eliminating the qualifying offer system.
- MLB projects that 12 teams would need to increase payroll by $636 million to meet the floor, while eight teams would have to reduce payroll by $528 million to comply with the cap, resulting in a net league-wide payroll increase of $108 million.
- The MLB Players Association (MLBPA) strongly opposed the proposal, criticizing it for restricting player contract rights, reducing amateur signing bonuses by $400 million, and maintaining stagnant luxury tax thresholds, while rejecting numerous player proposals on salary and roster issues.
- The current CBA expires on December 1, and without an agreement, MLB is expected to initiate a lockout similar to the 99-day stoppage in 2021.