MLB Owners Announce First Salary‑Cap Plan in over Two Decades

On May 28, 2026, Major League Baseball (MLB) owners presented a detailed salary‑cap proposal to the MLB Players Association (MLBPA). This marks the first time since the 1994‑95 strike that the owners have introduced a official cap. The plan would limit team payrolls in 2027 to $245.3 million, while setting a floor of $171.2 million, effectively forcing owner‑heavy franchises to cut spending and smaller markets to spend more.

Revenue Sharing and Escrow Mechanics

Central to the proposal is a 50‑50 revenue split. Teams would pool local broadcast revenue and distribute it evenly, and an escrow system would hold a portion of player salaries to ensure that the league’s share does not fall below half of total revenue. Owners argue the cap is necessary to address competitive imbalance and curb the spending power of wealthy clubs such as the Los Angeles Dodgers and New York Mets.

Player Concerns and Potential Strike

MLBPA has made it clear it will fight the cap