News

Major League Baseball proposes delaying salary cap start until 2028 in talks with players

Major League Baseball proposes delaying salary cap start until 2028 in talks with players

FILE - Major League Baseball commissioner Rob Manfred speaks during a baseball spring training media day, Feb. 15, 2024, in Tampa, Fla. (AP Photo/Charlie Neibergall, File) Photo: Associated Press


By RONALD BLUM AP Baseball Writer
NEW YORK (AP) — Major League Baseball proposed delaying the start of a salary cap until 2028, saying teams have too many commitments for next season that wouldn’t allow them to reduce spending quickly enough.
A day after the start of free agent negotiations for the 2026-27 offseason, owners on Tuesday proposed to players the sport adopt a hard cap of $258.2 million for 2028 and a floor of $180.2 million, using luxury tax payrolls with average annual values. A team would be allowed to remain as low as 90% of the floor in 2028, which would be $162.18 million, but would have to spend the entire amount of the floor over a three-year period.
“We recognize that clubs will need a full offseason to prepare to operate within the cap and floor system,” MLB spokesman Glen Caplin said in a statement. “This proposal would allow a smoother transition into the cap and floor system without delaying key player benefits, including earlier free agency, a $1 million minimum salary, a 30% increase to the pre-arbitration bonus pool and transactional reform that will reduce roster churn.”
Baseball’s five-year labor contract, reached in March 2022 on the 99th day of a lockout, expires Dec. 1 and management is expected to again lock out the union. MLB hadn’t proposed a salary cap since the negotiations that led to a 7 1/2-month strike in 1994 that forced cancellation of the World Series for the first time in 90 years. The players’ association has said it never will accept a cap.
“Coming off another incredible season of baseball, MLB owners continue to propose blowing up the current system and replacing it with one designed to line their pockets and increase their franchise values,” the union said in a statement. “Players stand ready to negotiate in good faith toward a new CBA that will capitalize on our sport’s unprecedented momentum and benefit players, clubs, and fans alike.”
Management’s proposal is tied to a 50-50 split of revenue with players, and the union takes issue with management’s definitions of revenue and expenses. Cap and floor figures would be lower if there is a work stoppage that causes MLB revenue to decline. Management’s May proposal included a fixed $245.3 million figure for a cap and $171.2 million for a floor, also with the provision a club could be at only 90% of the floor.
“The projected salary cap and floor for 2028 continues to provide more money for major league players while leveling the playing field and giving more teams the ability to participate in the free agent market and retain their homegrown stars so that every fan believes their team has a fair chance to win it all,” Caplin said.
Management said eight teams would have to reduce current payroll by a combined $528 million to get under the 2028 cap: Boston, the Chicago Cubs, the Los Angeles Dodgers, New York Mets and Yankees, Philadelphia, San Diego and Toronto.
Twelve teams would have to increase spending by $636 million to reach the floor: the Athletics, the Chicago White Sox, Cincinnati, Cleveland, Colorado, Miami, World Series champion Milwaukee, Minnesota, Pittsburgh, St. Louis, AL champion Tampa Bay and Washington.
MLB said it was willing to discuss phase-in timelines and procedures. It would keep the current luxury tax system and revenue-sharing plan for 2027 with the same thresholds and tax rates as in 2026, then centralize MLB media revenue for 2028.
Players claim the cap proposal would eliminate guaranteed contracts because of its escrow provision that would claw back salary money if the players’ share of defined revenue in a year is above 50%. The union called the plan “replacement of market-based fundamentals with a zero-sum system that harms the middle class and pits player against player” and said the proposal would lead to “stripping current competitive advantages for smaller market teams.” Players said the proposal would cause a $400 million reduction in amateur signing bonuses for 2027.
Owners said they would accept the union’s proposal to reduce service time for free-agent eligibility from six seasons of service to five for players at least 30 years old but would give a player’s team the right to make a qualifying offer as under the current free-agent rules. If a player rejects the qualifying offer, he would be eligible for salary arbitration.
MLB would accept the union’s proposal to eliminate qualifying offers for other free agents.
Management would raise the minimum salary from $780,000 to $1 million for those with two years of service and $900,000 for others — those others would earn $100,000 more from the pre-arbitration bonus pool if they accrue a full year of service as long as they are not on the injured list for half a season or more. Minor league minimums would increase from $63,600 to $73,400 for initial big league deals and $127,100 to $146,700 for additional contracts.
MLB proposed a one-time bonus payment to players as part of the plan, using money from luxury tax proceeds the current labor agreement earmarks for players’ 401(k) accounts. The bonus would be based on 2026 service time, with those in the majors for at least 172 of the 187-day regular season getting $285,000. The bonus would be $213,400 for three-quarters of a year, $142,300 for half and $71,100 for a quarter.
MLB would increase the pre-arbitration bonus pool from $50 million in 2026 to $65 million in 2027, then up to $75 million over the term of a seven-year labor agreement through the 2033 season. It would include Prospect Promotion Incentive draft picks in the international draft MLB wants and would allow a player to earn his team two PPI picks, one in the amateur draft and the other in the international draft. MLB would accept the union’s proposal to exclude foreign professionals, such as Japanese players, from the calculation if a player earns additional service time based on his finish in Rookie of the Year voting.
Owners would eliminate a player’s fourth option year and reduce optional assignments per season from five to four. They would decrease the number of years by one for when a player must be protected from the Rule 5 draft and allow a player selected in the Rule 5 draft to be optioned.
___
See AP’s full MLB coverage here

News

15 hours ago in Entertainment, Music, Trending

The 2027 Coachella lineup is here: Dua Lipa, Tame Impala and SZA to headline

Three acts who are no strangers to Coachella will headline the annual festival in the California desert next April, the organizers announced Wednesday.

23 hours ago in Entertainment

The ‘Hunger Games’ are back, with an A-list cast and brutal origin story for Haymitch

Three years ago, new cinematic life was found in a "Hunger Games" adventure without Katniss. Now, the franchise is back, jumping through time again to check in on another major character from the original films in his teenage years: Haymitch Abernathy.

23 hours ago in National, Trending

More than a dozen key races remain too early to call one week after Election Day

The size of Democrats' majorities in the House and Senate remained undetermined one week after Election Day as more than a dozen races were still too early to call Tuesday.

2 days ago in Lifestyle

Year-end checklist for small businesses: 15 steps to start in November

Intuit QuickBooks reports that one in three U.S. adults plan to start a business in 2026. 

2 days ago in Lifestyle

A language of belonging: Advice for learning the mother tongue of your ancestors

Losing a tangible connection to your family's ancestral homeland can bring unexpected sorrow, whether through the death of an older relative, the sale of a property passed down for generations gets sold or the destruction a handful of surviving heirlooms.

3 days ago in Entertainment, Trending

‘Grand Theft Auto VI’ is almost here. What to know about the characters, music and billions at stake

"Grand Theft Auto" has never been much for following the rules. Nearly three decades after a video game built around stealing cars, outrunning police and embracing criminal mayhem first arrived, the franchise has survived controversy, transformed open-world gaming and become one of the biggest sellers in entertainment.

3 days ago in Entertainment, Trending

Russell Brand is sentenced to 10 1/2 years in a British prison for rape and sexual assault

Russell Brand was sentenced Monday to 10 1/2 years in prison for raping one woman and sexually assaulting three others during a period when his comedy career built around boasts of erotic exploits was taking off.

3 days ago in Entertainment

‘Godzilla Minus Zero’ stomps to a record-setting $31.6 debut, clobbering ‘The Cat in the Hat’

"Godzilla Minus Zero" stomped into movie theaters with a chart-topping $31.6 million over the weekend, scoring a record debut for a foreign-language film at the North American box office.

6 days ago in Entertainment

Awkwafina digs into her culinary roots to try something a little crazy: Open a restaurant

Awkwafina was feeling under the weather recently and decided she was going to make soup. And that startled her because she hasn't always been the kind of person who made soup.

6 days ago in Entertainment, Music, Trending

25 years after ‘Britney,’ 5 new Britney Spears songs showcase a pop icon at a transformative moment

Legacy Recordings on Friday is releasing "Britney (25th Anniversary Edition)," an expanded reissue of her pivotal record, which went quadruple platinum in less than two months. The collection features two remixes and five previously unreleased songs from that era, her first new (or is it old?) music since she announced she would "never return to the music industry" in a 2024 Instagram post.