Major League Baseball has seen louder calls from fans for a salary cap in the future, thanks to huge disparities in spending between teams like the Los Angeles Dodgers and New York Yankees versus small-market teams. While an MLB salary cap in the future is possible, there’s opposition standing in the way.
As reported by USA Today, two MLB teams (the Dodgers and the New York Mets) have payrolls north of $320 million in 2025, while the Yankees are among seven teams with a payroll above $200 million. Meanwhile, five clubs are spending less than $90 million on player payroll this season and nine at less than $120 million.
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The massive spending gap has resulted in fans, analysts and even some within the game calling for an MLB salary cap in the future. However, many have also insisted on instituting a salary floor that required the lowest-spending teams to invest more money into their rosters. As of now, though, there’s a long road ahead to a salary cap being implemented.
According to Alex Sherman and Lillian Rizzo of CNBC, commissioner Rob Manfred and league officials have discussed implementing both an MLB salary cap and a cap floor in the future. However, there is significant opposition from the MLB Players Association on adopting a salary cap.
“MLB officials have discussed adding both a salary cap and a salary floor, said the people, who asked not to be named because the discussions are private. The MLBPA, however, has long been against a salary cap, and the group says its position hasn’t changed.”
CNBC’s Alex Sherman and Lillian Rizzo on ongoing talks for an MLB salary cap
MLB adopted a competitive balance tax in the last collective bargaining agreement. Because of it, the Dodgers, Mets and Yankees broke the previous record for tax payments in 2024, per ESPN.
MLB tax payments 2024
- Los Angeles Dodgers – $103.016 million
- New York Mets – $97.115 million
- New York Yankees – $62.512 million
- Philadelphia Phillies – $14.251 million
- Atlanta Braves – $14.026 million
While many league officials are in favor of implementing an MLB salary cap, MLBPA executive director Tony Clark emphasized in 2023 that the players’ union is firmly against it.
“We’re never going to agree to a cap. Let me start there. We don’t have a cap. We’re not going to agree to a cap. A salary cap is the ultimate restriction on player value and player salary.”
MLBPA executive director Tony Clark in 2023 on the possibility of an MLB salary cap (H/T Yahoo Sports)
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Even if the players’ union supported it, MLB couldn’t implement a salary cap until 2027 because the CBA expires in December 2026. One tactic the league is widely expected to use to try and negotiate in a salary cap is a lockout in the winter and spring following the 2026 MLB season.
One thing the MLBPA would likely heavily push for, in exchange for a higher salary cap, is a much higher distribution of MLB revenue to the players. In addition, they will push for a much higher salary floor that could require every team to spend north of $120 million per season.
While MLB’s biggest stars would likely be the most opposed to a salary cap, because it would lower their salaries, journeyman players and regulars could be more willing to accept it if it increases salaries for non-superstars. For now, though, there’s a long battle ahead before an MLB salary cap is implemented.
