MLB owners propose first salary cap since 1994 strike - ESPN

Major League Baseball owners proposed a hard salary cap to players as part of the next CBA on Thursday, their first firm cap proposal since 1994.

Under the proposal, presented in a meeting with union officials, each team would need to maintain a payroll of at least $171.2 million without exceeding $245.3 million, starting in 2027. That includes player benefits, just as it does under the current competitive balance tax system.

If the sides can't negotiate a new CBA before the current one expires Dec. 1, owners are likely to «lock out» the players until a new deal is in place. In that instance, players will have no contact with their teams, and league business involving players — like trades and free agency — will come to a halt. The sides are likely to meet again in the coming weeks after each has digested the other's proposals.

«Fans overwhelmingly support a salary cap and floor like in the other leagues because they don't believe a $446 million spending gap from top to bottom is a fair fight,» league spokesperson Glen Caplin said in a statement. «Our salary cap and floor proposal levels the playing field while sharing baseball revenue with the players 50/50 as we grow the game together.»

Currently 12 teams would need to increase their payrolls to reach the minimum while eight teams would have to shed payroll to get under the ceiling.

The proposal includes a 50-50 split of league revenues with the players. As those increase, the salary floor and cap would also increase. Additionally, the league is proposing a centralized fund for all local media revenues with money distributed equally among the 30 teams.

The proposal comes one day after the union made its first overture to the league, which included higher CBT thresholds