MLB submitted a counteroffer after the players association released its initial collective bargaining proposal. The league did not publicly disclose its full details, but reports indicate a hard salary cap of $245.3MM and a salary floor of $171.2MM. The league also proposed an even 50-50 split in revenues, though the relationship between that split and the fixed cap and floor is unclear. If revenue sharing is percentage-based, the cap and floor could change with revenues. Similar fluid outcomes occurred in the NBA, where players received 90.9% of reported salaries after revenues fell below projections. MLB’s proposed salary floor includes player benefits such as insurance and transportation, which are already reflected in luxury-tax ledgers at about $18MM annually. It is unclear whether pre-arbitration bonus pool contributions are also included, which could reduce the effective floor toward about $150MM.
"MLB did not formally disclose the details to the public, ESPN's Jesse Rogers reports that the league's proposal contained a hard salary cap set at $245.3MM and a salary floor set at $171.2MM."
"The Athletic's Evan Drellich adds that the league is proposing an even 50-50 split in revenues. It's not entirely clear how that can coexist with the more concrete numbers the league also suggested. In the event of a percentage-based revenue sharing split, the cap and floor would be fluid and dependent on revenues."
"We've seen that fluidity play out in other leagues. NBA players, for instance, were only paid 90.9% of their reported salaries for the 2024-25 season after the league's revenues came in under projections. (The NBA's bargaining agreement calls for 51% of league revenue to go to players.) The NBA held 10% of player salaries in escrow to begin the season, and 91% of that money wound up going back into teams' pockets rather than to the players."
"Rogers further notes that MLB's proposed floor includes player benefits (insurance, transportation costs, etc.). Player benefits are already factored into each team's luxury-tax ledger to the tune of about $18MM per year. It's not clear whether the $1.667MM each team contributes yearly to the leaguewide pre-arbitration bonus pool are factored into that spending floor as well, but that sum does count toward a team's CBT calculation."
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