The MLB Players’ Association made its initial proposal in CBA talks Wednesday, stating that it would result in increased revenue sharing that would guarantee every small-market team with a minimum of $240M in revenue annually.
Other key components of the proposal included a minimum salary of $1.5M starting in 2027, the elimination of the qualifying offer, free agency for players with five or more years of service time who have reached age-30, and an increase in luxury tax thresholds (to $300M from $244M).
The union says the $240M in minimum revenue sharing would come with stipulations that those funds be utilized to improve on-field performance, with those teams having payrolls of at least $150M. As a result, the union says “clubs will be able to keep more of the stadium-related revenues they generate; tens of millions in extra revenue sharing will go to low-revenue clubs that qualify for the playoffs or have a winning record; significantly increased sharing of local media revenues from high to low revenue teams.”
Additionally, there would be “penalties for clubs that neglect to spend revenue sharing payments on team payroll.”
— Mike Mazzeo (@MazzNYC) May 27, 2026
A labor battle between the league and union is expected, with owners expected to introduce a salary cap and floor system, which the union has been vehemently against for decades. The CBA expires Dec. 1.
Interim Exec Dir Bruce Meyer has insisted that economic reform can be achieved without a cap. The union believes owners want a cap, not primarily as a competitive balance mechanism, but rather to ensure fixed costs and increased franchise values.
USA Today, using MLB data, reported that the Mets had an MLB-high Opening Day 40-man roster payroll of nearly $358M, more than five times that of the Guardians ($70M). The two-time defending champion Dodgers were north of $322M.
“We’ve been willing to work with the league in at least one respect recently, when we agreed to allow them some flexibility over the luxury tax proceeds,” Meyer told SBJ in March. “And I think in bargaining, we’re going to make some proposals that involve revenue sharing; some of those proposals are going to help some of the teams that are being challenged. They already get tremendous financial support from traditional revenue sharing and luxury tax proceeds and other sources, but we’re going to have proposals that sort of address all those areas.”
The league, which is slated to counter Thursday, responded via statement.
“We appreciate the union making a set of proposals and we look forward to continuing the bargaining process and working towards solving the competitive balance problem our fans are telling us needs to be addressed,” MLB spokesperson Glen Caplin said. “We understand their proposals are designed to benefit players. Unfortunately, they do not address and in fact exacerbate the competitive balance problem our fans are telling us we must address. The MLBPA’s proposal would reduce the amount transferred to lower-revenue clubs, weaken the competitive balance tax, and lead to even more payroll disparity than exists today. For example, under the union’s proposal, the Dodgers would pay less in luxury tax payments, giving them an additional $70 million to spend on payroll.”
