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MLB Caps Free-Agent Contracts, Players Threaten Lockout

6/26/2026

Summary

MLB Caps

MLB caps free-agent contracts at five years and 15 % of payroll, and sets a $171.2 million floor and $245.3 million ceiling for 2027.
It raises minimum salary to $1 million for two-year players, adds a $100,000 bonus for under-two-year players, eliminates deferred contracts, and expands the competitive-balance pool to $65 million in 2027 and $75 million in 2032.
MLBPA rejected the plan, warned a December lockout could begin, and said it would cut compensation by billions.

Summary

Owners Propose Cap

On Thursday, June 25 2026, MLB owners presented their latest collective-bargaining proposal to the MLBPA.
The proposal uses a salary cap to keep ticket and TV prices low for fans.
It also imposes limits on performance, award and signing bonuses, adding restrictions on player rights.
Owners claim the plan will stop players from pitting each other against the league.
The offer includes a modest increase to the minimum salary.

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MLB Caps

MLB caps free-agent contracts at five years and 15 % of payroll, and sets a $171.2 million floor and $245.3 million ceiling for 2027.
It raises minimum salary to $1 million for two-year players, adds a $100,000 bonus for under-two-year players, eliminates deferred contracts, and expands the competitive-balance pool to $65 million in 2027 and $75 million in 2032.
MLBPA rejected the plan, warned a December lockout could begin, and said it would cut compensation by billions.

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