Major League Baseball owners proposed a hard salary cap of $245.3 million, including benefits, to the players' association on Thursday. This marks the first firm cap proposal since 1994, representing the first time in more than three decades that the league has made such a move.
The proposal, intended for the next collective bargaining agreement, is opposed by the players union, which has vowed never to accept the system. The move is expected to ignite tension between the two sides ahead of negotiations over a new labor deal.
Players have highlighted that since 2003, revenue has grown by 247% while player payroll increased by 149%. They argue that the proposed cap is not a limit on revenue, but rather only a cap on player salaries.
The ongoing dispute sets the sides on course for a confrontation that threatens the 2027 season.