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MLB Owners Have Proposed a Salary Cap for the First Time Since Baseball's 1994-95 Strike

The proposal would centralize local media revenue and require eight teams to cut payroll while 12 others would need to spend more.

  • On Thursday, Major League Baseball owners presented the players' association with a 2027 salary cap proposal of $245.3 million and a $171.2 million salary floor, a system the union has vowed never to accept.
  • Owners argue a cap is necessary to improve competitive balance, citing the Los Angeles Dodgers' $515 million payroll and luxury tax spending last year, seven times the $68.7 million payroll of the Miami Marlins.
  • Baseball owners haven't proposed a firm cap since 1994, when an earlier offer sparked a 7 1/2-month strike that forced the cancellation of the World Series for the first time in 90 years.
  • Players maintain a cap would hurt them while enriching owners, pledging never to agree to the proposal and instead seeking expanded free agency, salary arbitration rights, and higher major league minimums.
  • While other U.S. major sports leagues like the NBA and NFL operate under caps, the current five-year MLB labor deal expires December 2, risking a standoff if regular-season games are lost.
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metsmerizedonline.com broke the news on Wednesday, May 27, 2026.
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