Major League Baseball owners have formally proposed a hard salary cap and floor as part of the next Collective Bargaining Agreement, marking the first such move since the 1994 labor dispute that canceled the World Series. Under the plan, teams must spend at least $171.2 million and no more than $245.3 million on player payrolls starting in 2027, including benefits. The proposal includes a 50-50 split of league revenues with players and a centralized fund to equally distribute local media income across all 30 teams.

The league argues the cap-and-floor system promotes fairness, citing fan support and a current $446 million gap between the highest and lowest payrolls. However, the players’ union rejected the move, saying owners aim to control costs and boost profits, not protect competitive balance. Union head Bruce Meyer emphasized the proposal lacks player protections and could harm long-term interests.

Twelve teams, including the Athletics and Marlins, would need to raise spending to meet the floor, while eight—including the Yankees, Dodgers, and Red Sox—would have to reduce payrolls. The league did not address free agency or arbitration rules in this proposal, focusing first on economic structure. A lockout is likely if no deal is reached by December 1, 2026.