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MLB Owners Push Salary Cap Proposal as Players Union Threatens Lockout

Owners are embracing a hard cap to curb runaway spending spurred by the Dodgers’ record-breaking $563 million payroll, with the Mets following suit.

Jul 15, 2025; Cumberland, Georgia, USA; An overall view of the Truist Park before the 2025 MLB All Star Game. Mandatory Credit: Dale Zanine-Imagn Images/File Photo
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Overview

  • The current collective bargaining agreement expires December 1, 2026, opening the door for a potential management lockout that would begin in the offseason.
  • MLBPA executive director Tony Clark has branded any salary cap “institutionalized collusion,” vowing that the players’ union will fight its installation.
  • Commissioner Rob Manfred argues a hard cap is needed to fix competitive imbalance and offset revenue losses from collapsing regional sports network deals.
  • Payroll disparity is stark: the Dodgers are projected to spend $563 million this season on payroll and luxury taxes while 10 clubs plan budgets under $150 million.
  • A preliminary cap framework under discussion could include a salary floor and a guaranteed share of revenues for players, though final details remain unsettled.