MLB Proposes $258.2 Million Hard Cap Starting 2028, a Year Later Than Planned, as Dec. 1 Lockout Looms

Since MLB first put a salary cap on the table earlier this year, the union has rejected it flatly. Today, Nov. 3, the league changed the timeline but not the concept.

Owners proposed to the MLB Players Association a hard cap of $258.2 million and a floor of $180.2 million, both starting in 2028. Both would be measured by luxury tax payrolls using average annual values. The league's earlier proposal set a cap of $245 million and would have started in 2027.

The offer came a day after free agency opened for the 2026-27 offseason.

What the revised offer says

MLB spokesman Glen Caplin said in a statement that clubs "will need a full offseason to prepare to operate within the cap and floor system." The league's stated reasoning is that teams already have too many commitments for next season to cut spending quickly.

Teams could fall as low as 90% of the floor in 2028, which works out to $162.18 million. They would still have to spend the full floor amount over a three-year period.

The proposal is tied to a 50-50 revenue split with players. Cap and floor figures would be lower if a work stoppage cuts league revenue.

For 2027, MLB would keep the current luxury tax system and revenue-sharing plan with the same thresholds and tax rates as 2026. It would then centralize MLB media revenue for 2028. The league said it is willing to discuss phase-in timelines and procedures.

Who would have to move

MLB says eight teams would have to cut a combined $528 million in payroll to get under the 2028 cap: Boston, the Chicago Cubs, the Los Angeles Dodgers, the New York Mets, the New York Yankees, Philadelphia, San Diego and Toronto.

Twelve teams would have to add a combined $636 million to reach the floor: the Athletics, the Chicago White Sox, Cincinnati, Cleveland, Colorado, Miami, Milwaukee, Minnesota, Pittsburgh, St. Louis, Tampa Bay and Washington.

That second list includes the teams that just played for the title. Milwaukee won the 2026 World Series and Tampa Bay won the American League pennant.

Sweeteners and concessions

Caplin said the plan does not delay "key player benefits," and listed earlier free agency, a $1 million minimum salary, a 30% increase to the pre-arbitration bonus pool and transactional reform meant to reduce roster churn.

Owners also said they would accept the union's proposal to cut the service time needed for free agency from six seasons to five for players at least 30 years old. The player's team would keep the right to make a qualifying offer, and a player who rejects one would be eligible for salary arbitration.

MLB would also accept the union's proposal to eliminate qualifying offers for other free agents.

The union's position

The players' association has said it never will accept a cap. It also disputes how management defines revenue and expenses, which matters because the proposed cap is pegged to a 50-50 split.

The last time MLB proposed a cap was in the talks that led to the 1994 strike. That strike lasted 7½ months and forced the cancellation of the World Series for the first time in 90 years. The current five-year deal was reached in March 2022, on the 99th day of a lockout.

What it means for the Dodgers

The Dodgers are the obvious test case. Their 2026 luxury tax payroll of about $433 million is the highest in baseball, and no other club exceeds $400 million. Their 2025 figure was $417.3 million, according to Yahoo Sports.

According to Cot's Baseball Contracts, the Dodgers have $302.6 million committed for 2028 across 10 players, including Shohei Ohtani, Yoshinobu Yamamoto, Mookie Betts and Will Smith. That is $44.4 million above the proposed cap.

The delay gives them an extra offseason. A multiyear deal signed this winter, however, would still run into the cap years under the league's plan.

Dodgers principal owner Mark Walter told Jack Harris of the California Post that the club is not relying on spending alone. "Our farm system is pretty strong, and that and player development are really big things for us," Walter said. "So I think on any playing field, we'll still be among the elite teams."

The LA Times' Dylan Hernandez-style commentary framing aside, the Dodgers face real roster math. Cot's shows commitments for next year well above the 2028 figures, and the club carries expensive long-term deals including Ohtani's 10-year, $700 million contract.

What comes next

The current labor deal expires Dec. 1, and management is expected to lock out the union at that point, freezing major-league transactions. That leaves a window of about four weeks for free agents and teams to deal without knowing the financial rules of 2027 and beyond.

The union has not yet responded publicly to the revised proposal. Whether it treats the 2028 start date as movement or as the same cap on a delayed schedule will shape whether the 2027 season is at risk.