The current Collective Bargaining Agreement (CBA) between Major League Baseball and the Players Association is set to expire following the 2026 season, so negotiations for a new one are underway.
Although financials are always at the heart of any CBA, they are set to be even more prevalent this time around due to media rights issues and a perceived lack of competitive balance. To help offset competitive balance issues, the idea of a salary cap and floor has gained a lot of steam, and many fans are in favor of one.
MLB is the only one of the four major American sports without a minimum and maximum limit to spending, and some owners may be looking to change that. According to Jon Heyman of MLB Network, the early projections from the league suggest a salary cap of around $260-280 million, along with a salary floor of around $140-160 million.
Early projections suggest a proposed salary cap will be around $260-$280 million, along with a floor of $140-$160 million, per @JonHeyman pic.twitter.com/Zx7hioETsw
— Just Baseball (@JustBB_Media) February 27, 2026
A salary cap is already something the players don’t want, and if the owners propose those figures, it could create even more anger among the MLBPA. Going off the median for projections of a $270 million cap and a $150 million floor, that puts the floor as about 56% of the ceiling.
Requiring teams to spend at least 56% of the cap would be far lower than all other sports. As it stands, NFL teams are required to spend 89% of their cap (over a four-year period), while the NBA requires teams to spend at 90% of the cap. The NHL is the lowest figure, and they still require teams to spend at least 75% of the cap.
That lays a strong foundation for the players to request a floor of at least 80%, which puts the salary floor closer to $216 million. Entering 2026, only 12 teams have a payroll that high, and only 14 have a payroll of at least $200 million.
Along with the actual financials, there would be other details to work out, such as how to implement a potential cap, including when teams would need to be compliant by, making it even more difficult to add one to the sport.
There would also need to be a revised revenue sharing system that works for both the players and owners, adding another layer on top of this all.
The easiest solution for both the players and league would be to add additional and stricter penalties for teams that spend more than the luxury tax threshold, along with penalties for teams that aren’t spending. There would not need to be any significant changes to the economics of the sport that way, and it’s the most straightforward path to getting a deal done to avoid missing games.
A salary cap remains unlikely to happen, but it is a strong negotiating tactic for the owners, so it will continue to be discussed.
MLBPA unlikely to accept salary cap
The expectations is the players won’t be willing to even entertain the idea of a salary cap. As it stands, MLB is the only major sport without a cap thanks to their strong union.
A salary cap limits potential player salaries, and it’s something the union views as a non-starter in negotiations.
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