MLB owners submitted a salary cap proposal to the players’ association, reviving a system last proposed in 1994. The proposal would limit team spending in 2027 to $245.3 million and set a payroll floor at $171.2 million, requiring some teams to spend more. The cap calculation would use luxury tax payroll figures that include $20.1 million for benefits and a pre-arbitration bonus pool. The Dodgers’ opening-day payroll of $415.2 million would be about $170 million above the proposed cap. Owners discussed a phase-in schedule and an escrow mechanism under a seven-year deal, while maintaining guaranteed contracts and centralizing local media revenue with a 50-50 player split.
"MLB's proposal would cap spending in 2027 at $245.3 million, using figures for luxury tax payrolls that include $20.1 million for benefits and the pre-arbitration bonus pool. It also would establish a payroll floor of $171.2 million, forcing some teams to spend more. The Los Angeles Dodgers, baseball's biggest spenders, had a $415.2 million payroll on opening day this year - around $170 million over the proposed cap."
"Owners said they would discuss with the union both a phase-in schedule that would give teams like the Dodgers time to comply with the cap and an escrow system as part of a proposed seven-year deal. In an escrow system, a portion of a player's salary is withheld to ensure the agreed-to-revenue split when final figures are accounted for."
"MLB maintained all current contracts would remain guaranteed and there would be no prohibition of guaranteed contracts under the cap system. MLB said it would centralize local media revenue from the 30 teams equally and give players a 50-50 split as part of a proposal that would eliminate the current revenue-sharing plan among the clubs."
""The cap is pretty much a nonstarter," Pittsburgh outfielder Bryan Reynolds said."
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