MLB owners and players clash over new salary cap before winter deadline
A proposed $258.2 million cap for 2028 puts the Philadelphia Phillies and other high-spending teams at the center of labor talks that end on December 1.
By Mariam Saleh ·
The Philadelphia Phillies and other high-spending teams face a hard salary ceiling starting in 2028 under a proposal from Major League Baseball owners. The current collective bargaining agreement expires at 11:59 p.m. ET on Dec. 1. If the sides do not reach a new deal, owners will impose a lockout that halts major-league signings, trades, and communication between teams and players.
The two groups remain far apart on the central issue of a salary cap. The league wants a $258.2 million cap and a $180.2 million floor beginning in 2028. The MLB Players Association rejects the cap, arguing it reduces player compensation and threatens guaranteed contracts. The union says the owners' system also cuts amateur signing bonuses.
MLB estimates that eight clubs, including the Phillies, would have to reduce spending by a combined $528 million using 2026 payrolls. Twelve other clubs would need to add a combined $636 million to reach the proposed floor. Teams could start at 90 percent of the floor, or about $162.2 million, but would have to reach the full amount over three years.
The existing luxury-tax system would remain in place for 2027. This delay gives the Phillies time to operate under familiar rules for one more season. However, any multiyear contracts signed this offseason would count against the cap in 2028. Key players like Bryce Harper, Aaron Nola, and Zack Wheeler have contracts that extend through or beyond that date. Wheeler's deal expires after 2027, removing his $42 million annual value before the cap takes effect.
The owners also proposed changing the free agency window. Teams would negotiate with players but could not finalize deals until the Winter Meetings begin. A concentrated signing period would last until Dec. 21, followed by a freeze on transactions until the first Monday in February. The union argues this compresses the market and reduces player leverage.
Other changes in the proposal include a 154-game regular season starting in 2029 and a seven-game Division Series. The minimum salary would rise to $1 million for players with two years of service. Players reaching age 30 would qualify for free agency after five seasons instead of six. The pre-arbitration bonus pool would increase from $50 million to $65 million.
Commissioner Rob Manfred stated in July that owners are more unified than at any point during his tenure. MLBPA interim executive director Bruce Meyer countered that rising attendance and franchise values show the league does not need a cap for competitive balance. The next step involves further negotiations before the Dec. 1 deadline.
