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MLB Union Proposes $1.5 M Minimum, Low-Payroll Tax

5/28/2026

Summary

MLBPA Submits Proposal

MLB Players Association submitted its first collective-bargaining proposal to owners on 2026-05-27.
The proposal adds a “competitive-integrity tax” penalizing teams with payroll under $150 million.
It raises the minimum salary to $1.5 million, expands the bonus pool to $180 million, and doubles “Super 2” player share to 44 percent.
Caplin said the plan shifts more local-TV money to clubs, guarantees small markets $240 million, and cuts the Dodgers’ luxury-tax by $70 million.

Summary

MLBPA Proposes Plan

The salary-cap plan would expand the amateur-draft lottery to eight teams and drop pick-back penalties.
It would levy a competitive-integrity tax on clubs spending under 50 % of the lowest threshold, adding surcharges for gaps.
The proposal would broaden 2022 service-time rules, guaranteeing a full year for MVP-top-five prospects.
Interim MLBPA head Bruce Meyer said the plan aims to help small-market clubs.

Summary

Owners Propose Cap

Owners are expected to propose a hard salary cap and floor, moving away from the competitive-balance-tax system.
Commissioner Rob Manfred plans to shift revenue sharing to a national model that reduces dependence on local-TV money.
If owners and the union cannot agree, the dispute could trigger MLB’s 10th work stoppage, similar to the 2022 lockout and 1994-95 strike.

History

Historical Context

The seven-month 1994–95 MLB strike began after the final games on August 11, 1994 and led acting commissioner Bud Selig to cancel the season on September 14, ending the World Series for the first time since 1904. That shutdown created a revenue-sharing precedent the 2026 collective-bargaining proposal now invokes as clubs seek a $1.5 million minimum salary.

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MLBPA Submits Proposal

MLB Players Association submitted its first collective-bargaining proposal to owners on 2026-05-27.
The proposal adds a “competitive-integrity tax” penalizing teams with payroll under $150 million.
It raises the minimum salary to $1.5 million, expands the bonus pool to $180 million, and doubles “Super 2” player share to 44 percent.
Caplin said the plan shifts more local-TV money to clubs, guarantees small markets $240 million, and cuts the Dodgers’ luxury-tax by $70 million.

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