Major League Baseball's team owners made their latest proposal to the players on Thursday as part of the ongoing negotiations on a new collective bargaining agreement. MLB renewed its push for a salary cap on team payrolls while also accepting some of what the players, through their union, the MLBPA, called for in its most recent proposal. As well, owners and the league called for limits on the length of certain contracts and also proposed an increase in the minimum salary.
MLB said in a Thursday statement:
"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. Every other major U.S. sport has tackled this problem, and every year more small market teams in those leagues have a chance to win. The salary cap and floor proposal levels the playing field, allowing us greater flexibility to address longstanding player priorities while sharing baseball revenue with the players 50/50.
As for specifics, MLB's latest proposal includes the following, all of which depend upon the union's acceptance of a payroll cap:
- A maximum contract length of five years for players who switch teams and a maximum of 15% of the cap with 5% increases every year of the contract;
- A maximum contract length of six years for players who remain with their original team under the so-called Cornerstone Player provision;
- An increase in the minimum salary from $780,000 to $1 million for players with at least two years of MLB service time;
- An increase in the minimum salary to $900,000 for players with less than two years of MLB service time, with the opportunity for a $100,000 bonus from the pre-arbitration bonus pool (already established);
- The elimination of deferred contracts;
- Acceptance of the union's proposal to allow free agency after five years of MLB service time instead of six for players age 30 or older;
- Acceptance of the union's proposal to do away with the qualifying offer system for free agents.
The Cornerstone Player provision, which would increase the maximum contract for re-signing, would have invalidated deals signed by players like Aaron Judge, who went back to the Yankees for nine years and $360 million.
| Service time (years) | Max years | Max contract |
|---|---|---|
| 0 | 12 | $500 million |
| 1 | 11 | $461 million |
| 2 | 10 | $421 million |
| 3 | 9 | $382 million |
| 4 | 8 | $343 million |
| 5 | 7 | $304 million |
| Free agent | 6 | $265 million |
Dozens of other players have left for new teams on contracts that would be disallowed under the league's proposal, including Juan Soto (15 years, $765 million), Shohei Ohtani (10 years, $700 million) and Bryce Harper (13 years, $330 million).
According to the league's calculations, 48% of the players with five years of service time during the current CBA would have reached free agency a year earlier under the new proposal, and 354 active players will do so if this rule is passed.
MLB in a prior proposal called for a cap on team payrolls of $245.3 million starting in 2027 and a payroll floor of $171.2 million. The relationship between competitive balance and payroll caps remains unproven, and the union has thus far shown no willingness to accept a cap. Team owners desire in cap in part because they believe it will increase MLB franchise valuations.
The MLBPA on Thursday released a statement in response to the league's latest proposal:
"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. These misleading offers are designed to look like 'improvements' but are of little or no value, given they are expressly conditioned on agreement to the league's cap system which eliminates the free market, and ensures gains for one player only come at the expense of another.
"The league also introduced a litany of additional restrictions on player rights — limiting salaries, contract length, performance, award, and signing bonuses. While MLB claims to be acting in the interest of fans, their proposals thus far are entirely consistent with owners' long-held goals: suppressing player salaries and maximizing club profits.
"Owners' attempts to pit players against players are nothing new, but they've failed in the past and will fail again now, because PA members remain unified. We are committed to achieving a fair deal that protects the rights of all players, promotes competition, and leaves our game better for future generations."
The current CBA is set to expire on Dec. 1, at which point owners are expected to lock out the players in the absence of an agreement.
