MLB Proposes Postponing Salary Cap Implementation Until 2028 Season

Major League Baseball proposed a $258.2 million salary cap for the 2028 season, delaying the implementation of a new economic system by one year.

Major League Baseball proposed on Tuesday to delay the implementation of a salary cap and floor until the 2028 season. The league’s updated offer projects a $258.2 million ceiling and a $180.2 million floor for 2028, based on a 50/50 split of projected revenue. These figures represent an increase from the initial 2027 proposal of a $245.3 million cap and $171.2 million floor. Under the new terms, Competitive Balance Tax (CBT) thresholds would remain unchanged for the 2027 campaign.

The proposal includes a $282 million cash payment to players from CBT proceeds. Current IRS limits restrict annual 401(k) distributions from these funds to approximately $72 million, leaving hundreds of millions in reserve due to spending beyond the $244 million tax threshold. While 12 teams, including the Milwaukee Brewers, currently fall below the projected 2028 floor, the league suggests teams could spend as little as 90% of that floor in a single year provided they meet a multi-year minimum.

Contingent on the cap-and-floor system, the league offered a $900,000 minimum salary, with some players reaching $1 million, and a $65 million pre-arbitration bonus pool. This contrasts with the MLB Players Association’s request for a $300 million base CBT threshold, a $1.5 million minimum salary, and a $180 million bonus pool. The union estimates players would lose over $1 billion under the league's proposed economic structure. The current collective-bargaining agreement is set to expire on Dec. 1.