MLB Proposes 2028 Salary Cap Start for Colorado Baseball

Major League Baseball proposed on Tuesday that a salary cap system begin in 2028, giving teams an additional year to prepare before strict spending limits take effect. The proposal outlines a hard cap of $258.2 million and a mandatory payroll floor of $180.2 million. These figures would be calculated using average annual values from luxury tax payrolls.

The offer came one day after free agent negotiations opened for the 2026-27 offseason. MLB stated that clubs have extensive commitments for the following season that prevent them from reducing spending rapidly. Glen Caplin, an MLB spokesman, noted in a statement that the league recognizes clubs need a full offseason to operate within the new structure. He said the plan aims for a smoother transition without delaying player benefits such as earlier free agency and a $1 million minimum salary.

The current five-year labor contract expires on Dec. 1. Management is expected to lock out the union if a new agreement is not reached. This is the first time MLB has proposed a salary cap since the negotiations that led to the 1994 strike. The players' association has previously stated it will not accept a cap.

Under the proposal, MLB would offer a one-time bonus to players using funds from luxury tax proceeds currently earmarked for 401(k) accounts. Players with at least 172 days of service in the 187-day regular season would receive $285,000. Those with three-quarters of a year of service would receive $213,400, while those with half a year would receive $142,300. A quarter of a year of service would qualify for a $71,100 payment.

Management identified eight teams that would need to reduce their current payrolls by a combined $528 million to meet the 2028 cap. Those teams are the Boston Red Sox, Chicago Cubs, Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia Phillies, San Diego Padres, and Toronto Blue Jays. Twelve teams would need to increase spending by $636 million to reach the floor. This group includes the Colorado Rockies, along with the Athletics, Chicago White Sox, Cincinnati Reds, Cleveland Guardians, Miami Marlins, Milwaukee Brewers, Minnesota Twins, Pittsburgh Pirates, St. Louis Cardinals, Tampa Bay Rays, and Washington Nationals.

MLB indicated it is willing to discuss phase-in timelines and procedures. The league plans to maintain the current luxury tax system and revenue-sharing plan for 2027 with the same thresholds and rates as 2026. Media revenue would be centralized for 2028. Owners said they would accept the union's proposal to reduce service time for free-agent eligibility from six seasons to five for players aged 30 and older. In that scenario, the team would retain the right to make a qualifying offer. If the player rejects the offer, he would be eligible for salary arbitration. The league would also accept the union's proposal to eliminate qualifying offers for other free agents.