On May 28, 2026, Major League Baseball (MLB) owners proposed a salary cap for the first time since the 1994-95 strike, amid ongoing negotiations with the MLB Players' Association (MLBPA) for a new collective bargaining agreement set to expire in December. The proposed salary cap is set at $245.3 million, with a payroll floor of $171.2 million. The owners' proposal includes a phase-in schedule for teams currently exceeding the cap, such as the Los Angeles Dodgers and New York Yankees, while teams like the Miami Marlins and Cleveland Guardians would need to increase their payrolls to meet the proposed floor.
The MLBPA has expressed strong opposition to the salary cap, with union leader Bruce Meyer stating that it aims to control costs and increase profits at the expense of players. The players' initial proposal includes raising the minimum salary from $780,000 to $1.5 million and increasing the competitive balance tax threshold from $244 million to $300 million. Additionally, the owners proposed to centralize local media revenue equally among the 30 teams, providing players with a 50-50 share.
Negotiations are expected to intensify after the conclusion of the MLB season, with the current collective bargaining agreement set to expire on December 2, 2026.