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The first phase of the MLB proposal for the new Collective Bargaining Agreement to the MLB Players Association (MLBPA) included a hard salary cap and a hard salary floor. They also outlined multiple revenue-sharing proposals.
The MLBPA quickly rejected the concept, as they have in past negotiations. The debate between the two sides began in May and will continue intermittently until the current agreement expires on Dec. 1.

The second proposal from MLB to the union included changes to the draft, including the elimination of high school drafting and the institution of an international draft. In response to that proposal, the union requested the elimination of the Qualifying Offer from free agency and the shortening of time it takes for a player to reach free agency.
On Thursday, during their regular negotiation session, the MLB negotiators proposed a minimum salary increase from $780,000 to $1 million for pre-arbitration players with two years of service time.
Those with less than two years would receive $900,000 with a $100,000 bonus at the end of the year if they spend less than 50 percent of the season on the injured list and complete the season with the team.
They agreed to the MLBPA’s request to reduce the free-agent eligibility requirement to five years of service time from the current six years for players 30 and older. They accepted the request for the elimination of the qualifying offer.

The MLB then proposed that all free-agent contracts be capped at five years for players changing teams or six years for those staying with their current team. The maximum dollar amount would be capped based on payroll. The top would be 15 percent of total payroll with a five percent increase per contract year. (Example: six-year/ $265 million under 2025 numbers).
The proposal also included the elimination of deferred money contracts, such as the controversial contract Shohei Ohtani signed with the Los Angeles Dodgers.
The pre-arbitration pool would increase by 30 percent ($50 million to $65 million) and up to $75 million by the end of the agreement.
The MLB proposed expanding the Prospect Promotion Program with the eligible player yielding up to two draft picks if the player is in the top two or three in Rookie of the Year or four or five in Cy Young voting or MVP voting. The picks would be distributed one for each draft (domestic and international).

MLB released its statement in support of its proposals.
“The biggest issue baseball fans want solved to strengthen the game is fixing the payroll disparity that leaves too many fans without hope of their team competing for a World Series title,” MLB spokesperson Glen Caplin said. “Every other major U.S. sport has tackled this problem, and every year more small-market teams in those leagues have a chance to win. The salary cap and floor proposal levels the playing field, allowing us greater flexibility to address longstanding player priorities while sharing baseball revenue with the players 50/50.
“Today, in addition to proposing the largest-ever increase in the minimum salary, earned by over half of MLB players, we accepted two landmark changes to free agency that have been in place for 50 years. We agreed to both the MLBPA’s proposal to provide earlier access to free agency, and their proposal to eliminate the qualifying offer system, a provision players view as a drag on free agency. We also proposed to eliminate deferred compensation and to create a new ‘Cornerstone Player’ provision similar to the NBA’s ‘Bird rights’ to give every team a fair shot at retaining their fans’ favorite star players. We will continue working with the MLBPA during the bargaining process to improve the game for teams, players and fans.”
The MLBPA had a rapid response to the latest offer from the MLB negotiating team.

“After making a series of proposals to reduce player compensation by billions of dollars, eliminate fundamental rights with a salary cap, and destroy the amateur entry process, Major League Baseball and team owners are now attempting to distract from the true impact their plan would have on baseball,” a statement from the MLBPA said. “These misleading offers are designed to look like ‘improvements’ but are of little or no value, given they are expressly conditioned on agreement to the league’s cap system which eliminates the free market, and ensures gains for one player only come at the expense of another. The league also introduced a litany of additional restrictions on player rights — limiting salaries, contract length, performance, award, and signing bonuses. While MLB claims to be acting in the interest of fans, their proposals thus far are entirely consistent with owners’ long-held goals: suppressing player salaries and maximizing club profits.
“Owners’ attempts to pit players against players are nothing new, but they’ve failed in the past and will fail again now, because PA members remain unified. We are committed to achieving a fair deal that protects the rights of all players, promotes competition, and leaves our game better for future generations.”
The two sides are expected to meet again before the All-Star break in July. There seems to be very little current space for agreement with the initial proposal as the basis for all subsequent proposals by both sides.
With the players staunchly refusing to consider that suggestion, nothing else can be achieved until they find some common ground on the competitive balance issue.
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