Level the Playing Field
Every fan deserves a team with a real shot. Baseball is the only major U.S. sport without a salary cap — and in 2025, a $446 million gap separated the highest- and lowest-spending clubs. Here's MLB's proposal to close it.
The problem, in three numbers
Based on 2025 season payroll data and MLB's proposed economic system for 2027–2033.
Gap between the highest ($515M) and lowest ($69M) team payrolls in 2025
Share of baseball revenue players would receive under MLB's proposal
Major U.S. pro sports leagues that already use a salary cap — baseball is the outlier
Total major league payroll, 2025 season
Baseball has gotten stronger because MLB listened to fans and made real changes on the field — the pitch clock to quicken the game, and the ABS challenge system to get the biggest calls right. The next fix is off the field: a payroll gap unmatched in any other major U.S. sport.
Total payroll spending includes major league player payroll and competitive balance tax payments — i.e., total spending on major league players.
Fans overwhelmingly support a salary cap and floor, like the other major U.S. leagues already use, because a $446 million spending gap from top to bottom isn't a fair fight. MLB's proposal levels team spending while sharing baseball revenue with players 50/50, and by sharing media revenue equally, it also aims to end local TV blackouts — another top fan concern.
How it works
Key highlights of MLB's economic proposal — a proposed 7-year term, 2027–2033
1. Salary cap and floor
- No club could exceed the salary cap; every club would have to meet the salary floor.
- For 2027: a floor of $171.2 million and a cap of $245.3 million, illustrated here using 2026 Opening Day competitive balance tax payrolls.
- The current 2026 luxury-tax threshold, $244 million, already sits below the proposed cap.
- The parties would still need to negotiate a phase-in timeline and procedures.
Note: cap and floor figures use CBT payrolls, which would keep including benefit costs the way they're calculated today — projected at roughly $23 million per club in 2027. MLB says a more even playing field would also give it more flexibility to address long-standing player concerns about the reserve system.
2. A 50-50 split of revenue
- Players would receive 50% of baseball revenue, sharing equally with clubs as the game grows.
- No reduction in current major league player compensation or benefits — in year one, players in aggregate would earn more than they did in 2026.
- Since 2003, MLB revenue has grown 247% while player payroll has grown 149%, a gap this proposal is meant to close.
- MLB has proposed both sides retain an independent accountant to verify the numbers, with audit rights and protections comparable to the unions in other leagues.
1 NBA players receive up to 51% of league revenue when growth beats predetermined benchmarks, and as little as 49% when growth lags.
3. Centralized media revenue and revenue-sharing reform
- Revenue from all local media would be centralized and shared equally across every club.
- That's meant to fix local market blackouts, increase national exposure for top players and teams, and move away from a shrinking regional-sports-network model.
- Players would receive 50% of any increase in media revenue.
- Centralizing local media rights would shrink revenue disparity between clubs, which MLB says allows the current revenue-sharing plan — one the players' union has long argued discourages growth — to be replaced.
- The commissioner could implement a supplemental local revenue-sharing system so lower-revenue clubs can still meet the salary floor.
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Frequently asked questions
Will this hurt players?
MLB's proposal keeps player compensation and benefits at current levels or higher — in year one, players in aggregate would earn more than they did in 2026 — and adds a 50-50 split of baseball revenue going forward. Any final structure would still need to be negotiated with the MLB Players Association.
Why now?
The gap between the highest- and lowest-spending teams reached $446 million in 2025, and MLB revenue has outpaced player payroll growth since 2003 (247% versus 149%). The current labor agreement covers the 2027 season, making this the natural point to negotiate a new one.
What about the luxury tax?
The competitive balance tax already penalizes spending above a threshold — $244 million for 2026 — but it's not a hard cap, so some teams simply pay it and keep spending. MLB's proposal replaces that with a firm $245.3 million cap and a $171.2 million floor for 2027.
What happens next?
This is MLB's opening economic proposal for the next collective bargaining agreement. It still needs to be negotiated with the MLBPA, including a phase-in timeline for the cap and floor. This campaign is about building fan awareness of the issue as that process plays out.