MLB Proposes Salary Cap, Salary Floor: Instant Reaction

Should the MLBPA consider the league's first offer despite the salary cap?

Practice baseballs are stored in buckets at the Cincinnati Reds Player Development Complex in Goodyear, Ariz., on Friday, Feb. 14, 2025. | Sam Greene/The Enquirer / USA TODAY NETWORK via Imagn Images

The Major League Baseball Players Association made the first move in negotiations with Major League Baseball on Wednesday with a proposal with the current collective bargaining agreement set to expire after the 2026 season comes to a close.

Major League Baseball rejected the first offer and it was reported that the league would be responding with an offer of its own on Thursday. The expectation has been that the league would try to get a hard salary cap in place. On Thursday afternoon, the league made its offer and it did include a hard salary cap — and a salary floor, per ESPN's Jesse Rogers.

"Breaking: As expected, MLB proposed a hard salary cap to union officials today as part of the next CBA, sources tell ESPN. The salary floor for teams beginning in 2027 would be set at $171.2 million which includes player benefits with the ceiling at $245.3 million," Rogers wrote on X.

Instant Reaction

Jul 21, 2025; Miami, Florida, USA; A bucket of baseballs sits on the field before the game between the San Diego Padres and the Miami Marlins at loanDepot Park. Mandatory Credit: Rhona Wise-Imagn Images | Rhona Wise-Imagn Images

At first glance, this is an interesting counter from Major League Baseball. The salary cap number arguably is too low, but the salary floor number is very interesting.

Right now, there are nine teams with tax payrolls over the $245.3 million: the Los Angeles Dodgers ($420.1 million), the New York Mets ($381.8 million), the New York Yankees ($336.5 million), the Philadelphia Phillies ($313.8 million), the Toronto Blue Jays ($307.2 million), the Boston Red Sox ($267.4 million), the San Diego Padres ($258.1 million), the Atlanta Braves ($253.5 million) and the Chicago Cubs ($249.8 million).

On the other hand, there are 12 teams below the proposed $171.2 million salary floor: Cincinnati Reds, Athletics, Milwaukee Brewers, Pittsburgh Pirates, Colorado Rockies, Minnesota Twins, Washington Nationals, St. Louis Cardinals, Chicago White Sox, Tampa Bay Rays, Cleveland Guardians, and the Miami Marlins.

At first glance, the salary floor number arguably is very good. It's also a sign that the league knows that there are a lot of teams out there that can — and should — be spending more. Like the Marlins, for example. Their payroll right now is just over $80 million. That's ridiculous and is arguably more of a problem than the Dodgers' high-spending ways. If the final CBA has this $171.2 million figure as the floor, it would be a win for baseball.

The salary cap number arguably is too low, though. When you have nine teams over that number and the Dodgers and Mets both sniffing $400 million, that's a sign that $245.3 million isn't going to cut it. But what about $300 million? That would leave just five teams over the number. Now, a salary cap is going to be a very dififcult sell because it impacts the amount a player can make, but if the salary cap is high enough, it's worth listening if the floor is that high as well.