MLB reportedly submits first CBA proposal to union, which includes a hard salary cap and a $171M salary floor

May 28, 2026 - 20:54

Major League Baseball has reportedly submitted its first collective bargaining agreement proposal to the players' union, and the league is not holding back. According to sources, the proposal includes a hard salary cap for the first time in the sport's history, along with a significant salary floor set at $171 million. The cap would not take effect immediately but is slated for the 2027 season, giving both sides time to adjust.

The move is unsurprising. For years, team owners have argued that competitive balance is broken, pointing to a handful of high-revenue clubs that dominate free agency and payroll rankings. A hard cap would limit how much any single team can spend, theoretically leveling the playing field. The proposed floor, meanwhile, would force low-spending clubs to invest more in player salaries, addressing a long-standing grievance from the union about teams that refuse to compete.

But the union has historically opposed any form of a hard cap, viewing it as a ceiling on player earnings. The current system uses a luxury tax, which penalizes high spenders but does not set a strict limit. The players' association will likely counter with demands for higher revenue sharing or a softer cap structure.

Negotiations are expected to be tense. The current CBA expires after the 2026 season, and both sides are laying groundwork early. Whether this proposal gains traction or becomes a starting point for a long fight remains to be seen.