Major League Baseball and the MLB Players Association held another collective bargaining session Tuesday, with the league proposing that a salary cap and floor system be implemented beginning in 2028, the second year of an agreement.

With free agency already underway for the 2026-27 offseason, some clubs have existing commitments that place their 2027 payrolls near or above the proposed salary cap, while others would need to dramatically increase payrolls this offseason in order to comply with the proposed salary floor, prompting MLB to propose the implementation to be delayed until the 2028 season.

According to the league, this would provide clubs with sufficient time to manage their payrolls into the proposed payroll range, avoiding a significant disruption to the current free-agent market.

“We recognize that clubs will need a full offseason to prepare to operate within the cap and floor system,” MLB spokesman Glen Caplin said. “Therefore, with this offseason already underway, we proposed today to begin the cap and floor system in 2028. This proposal would allow a smoother transition into the cap and floor system without delaying key player benefits, including earlier free agency, a $1 million minimum salary, a 30% increase to the pre-arbitration bonus pool, and transactional reform that will reduce roster churn.

“The projected salary cap and floor for 2028 continues to provide more money for Major League players while leveling the playing field and giving more teams the ability to participate in the free-agent market and retain their homegrown stars so that every fan believes their team has a fair chance to win it all.”

The projected numbers associated with the salary cap and floor system were also altered in Tuesday’s proposal, with the 2028 floor set at $180.2 million and the 2028 cap set at $258.2 million. This represents a cap increase of nearly $13 million as compared to MLB’s initial proposal for 2027 ($245.3), while the floor comes in $9 million higher ($171.2).

Based on end-of-season payrolls from 2026, 12 clubs (Marlins, Guardians, Cardinals, Rays, Nationals, White Sox, Twins, Rockies, Pirates, Athletics, Reds and Brewers) would be required to increase payroll by a combined $636 million to meet the floor, allowing those clubs to be involved in the free-agent market while giving them a greater ability to retain their homegrown stars.

Eight clubs (Dodgers, Mets, Yankees, Phillies, Blue Jays, Padres, Red Sox and Cubs) would be required to reduce their payroll by a combined $528 million to meet the cap.

Salary cap and floor figures utilize CBT payrolls, which would continue to include benefit costs (while excluding signing bonuses to amateur players), consistent with how CBT payrolls are calculated under the status quo.

Under MLB’s latest proposal, the current revenue sharing plan and Competitive Balance Tax would be used in 2027 before transitioning to sharing baseball revenue with the players on a 50/50 split and centralizing media revenues in 2028.

MLB would agree to allocate the players’ share of 2026 CBT proceeds (which are normally used to fund contributions to players’ 401(k) accounts in future seasons) to players as a bonus based on service accrued in 2026 ($285,000 to each player that received a full year of service, $213,400 to any player with three quarters of a year of service, $142,300 to any player with a half-year of service, and $71,100 to any player with a quarter-year of service.)

MLB added that it is willing to discuss additional appropriate phase-in timeline and procedures for implementation of the salary cap and floor.

While the implementation of the salary cap and floor would be delayed until the 2028 season, MLB’s proposal did not alter the timeline for the other reserve system and transactional proposals that had already been discussed, all of which would take effect in 2027:

Earlier Access to Free Agency

MLB will accept the MLBPA’s May 27 proposal to reduce the period of reserve to five years for 30-year-old players (subject to the club’s right to sign the player to a one-year contract with a salary equal to the average salary of the 125 highest-paid players), decreasing the reserve period below six years for the first time since it was introduced in 1976. This past year, 48% of players with five years of service time would have reached free agency a year earlier under this provision than in the past Collective Bargaining Agreement.

Eliminate Draft Pick Compensation

MLB will accept the MLBPA’s May 27 proposal to eliminate the qualifying offer system, which requires a club to forfeit Draft picks for signing free agents who had been extended a qualifying offer and rejected it.

Increases to Minimum Salaries

MLB will increase the minimum salary from $780,000 to $1 million in 2027 for players with at least two years of service, and $900,000 for players with less than two years of service.

Players with less than two years of service will also earn at least $100,000 under the Pre-Arbitration Bonus Program, bringing their total compensation to at least $1 million if they receive a full year of service time and spend less than half the season on the injured list.

The increase of the minimum salary to $1 million would be the largest year-over-year increase in the minimum salary in baseball history, about $100,000 higher than the previous largest increase. In future years, the minimum salary will increase with the growth in the salary cap and floor.

Increases to the Pre-Arbitration Bonus Program

MLB will increase the Pre-Arbitration Bonus Pool by 30% from $50 million in 2026 to $65 million in 2027, growing the Pool to $75 million over the term of the CBA.

Accrual of Major League Service/PPI Selections

MLB will add PPI Selections in the International Draft and allow eligible prospects to earn their club up to two selections in their career (one Domestic and one International), further incentivizing clubs to add top prospects to their Opening Day roster.

MLB will accept the MLBPA’s proposal to exclude foreign professionals when determining whether an eligible prospect will receive a full year of service for finishing first or second in Rookie of the Year voting (provided the eligible prospect otherwise finishes in the top three in the Rookie of the Year voting).

Changes to Make it More Difficult to Send Players to the Minor Leagues/Reduce Roster Churn

The number of times a player can be optioned in a season would be reduced from five to four, while the fourth option for players would also be eliminated.

Clubs would be prohibited from optioning or outrighting a player during the playing week by implementing weekly rosters. Restrictions would exist regarding teams’ ability to cycle a player on and off the 40-man and active rosters throughout the seasons for strategic reasons.

Changes Intended to result in Quicker Promotions to the 40-Man Roster

Clubs would be required to add players to the 40-man roster a year earlier to prevent them from being eligible for the Rule 5 Draft.

Clubs would be incentivized to add players to the 40-man roster by allowing the claiming club in the Rule 5 Draft to option the player to the Minor Leagues.

Additionally, all other elements of MLB’s original economic proposals, including the “Cornerstone Player” rules, would go into effect immediately.