MLB Pushes Salary Cap in Upcoming CBA Talks Amid Union Resistance

Commissioner Rob Manfred announced that owners have submitted a new collective bargaining agreement (CBA) proposal on May 28 that would introduce a league-wide salary cap of $245.3 million (including benefits) for the 2027 season, with a floor of $171.2 million. The plan calls for an equal split of all local broadcast revenues, a five-year maximum contract term (extendable to six years for re-signings), and an escrow system that would adjust player pay based on revenue performance. The owners argue the cap is needed because MLB is the only major North American sport without one and because a $441 million spending gap exists between the league’s highest- and lowest-spending clubs.

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Manfred emphasized that every owner backs the cap and would pool local TV revenue, allowing high-revenue teams such as the Los Angeles Dodgers (? $330 million annually) to share with smaller markets like the Milwaukee Brewers (? $20 million). He also said a “more robust free-agent market” is essential for player choice. The MLB Players Association (MLBPA) has countered with demands that include raising the minimum salary from $780,000 to $1.5 million, increasing the competitive-balance tax threshold to $300 million, expanding draft-lottery options, and eliminating qualifying offers for free agents. Former President Donald J. Trump publicly backed the owners’ cap push, noting that football operates under a similar system and that MLB “should have done it a long time ago.”

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Bruce Meyer, interim executive director of the MLBPA, argues the cap primarily benefits owners, allowing them to limit spending and “prevent teams from doing the things that they believe are in their interest to make the team better.” He contends that fan support is overstated and that the league’s costly MLB.TV commercials promoting the cap contradict genuine public backing.

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• “Look, I think it would be wildly, wildly inappropriate for me to speculate what the President of the United States might do or not do in a hypothetical situation,” — Rob Manfred, MLB Commissioner

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• “We know this. He’s a great sports fan, and he is really knowledgeable about the business of sports, so it doesn’t surprise me. He’s interested, but behind that, I’m going to pass.” — Rob Manfred

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• “Salary caps are bad for fans,” — Bruce Meyer, interim executive director, MLBPA

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• “Salary caps prevent teams from doing the things that they believe are in their interest to make the team better.” — Bruce Meyer

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• “should have done it a long time ago.” — Donald J. Trump, former U.S. President

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The current CBA expires on December 1. If the two sides fail to reach an agreement before that date, the start of the 2027 season could be delayed.

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