MLB Proposes Five-Year Free-Agent Contracts and Salary Cap in Next CBA

MLB proposed capping free-agent deals at five years when a player changes clubs, limiting the contract to 15 % of payroll with a 5 % increase. A “Cornerstone Player” rule would let teams retain their own free agents for up to six years, permitting contracts up to $265 million. The plan raises the minimum salary to $1 million, sets a floor of $171.2 million and a ceiling of $245.3 million, and eliminates qualifying offers and deferred contracts.

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Free agency began after the 1976 ruling that ended the reserve clause, establishing a six-year service rule for players to test the market. The new plan would lower that bar, allowing players with five years of service by age 30 to become free agents.

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MLB, represented by spokesperson Glen Caplin, and the MLBPA, led by interim executive director Bruce Meyer, are the primary parties.

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Free agents switching teams can sign for up to five years, capped at $202 million (15 % of payroll). Teams retaining their own free agents may offer six-year contracts up to $265 million. The minimum salary rises to $1 million for players with two years of service, while the league floor and ceiling are $171.2 million and $245.3 million. The pre-arbitration pool expands to $65 million and adds a $100 k bonus for eligible players.

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MLB says the cap and contract limits will narrow payroll gaps, giving small-market clubs a realistic chance to contend. It frames the plan as a 50/50 revenue share that also adopts the union’s push for earlier free-agency eligibility and removes the qualifying-offer system.

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The MLBPA argues the proposals would cut player compensation by billions, strip fundamental rights, and dismantle the amateur entry process. It opposes a hard salary cap, the five-year contract ceiling, and the removal of deferred compensation, warning the plan merely shifts money between clubs.

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MLB has not formally rejected a cap, but the union signals strong resistance; owners’ final stance remains undisclosed.

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Negotiations are slated to resume before the All-Star break.

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• “The biggest issue baseball fans want solved to strengthen the game is fixing the payroll disparity that leaves too many fans without hope of their team competing for a World Series title,” — Glen Caplin, MLB spokesperson

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• “After making a series of proposals to reduce player compensation by billions of dollars, eliminate fundamental rights with a salary cap, and destroy the amateur entry process, Major League Baseball and team owners are now attempting to distract from the true impact their plan would have on baseball," a statement from the MLBPA said.” — MLBPA statement

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• “I have never seen this degree of unity at this point among agents and players," Meyer said.” — Bruce Meyer, MLBPA interim executive director

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• “So it's literally just moving money around.” — Bruce Meyer

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