$258.2 million: MLB's new cap figure for 2028
The league pushed the hard cap start back one year, but the Phillies face a payroll ceiling soon.
By Fernando Rojas ·
Free agency opened on Monday, Nov. 3.
Major League Baseball and its players union are in a standoff over the terms of the next collective bargaining agreement. The current deal expires at 11:59 p.m. ET on Dec. 1. If the two sides do not reach an agreement by then, owners will likely impose a lockout. A lockout would freeze signings, trades, and communication between clubs and players. It would not cancel scheduled games immediately, as the 2021-22 lockout lasted 99 days before a deal was reached in March 2022.
The central point of contention is a salary cap. MLB has proposed a hard cap of $258.2 million and a salary floor of $180.2 million. The MLB Players Association remains firmly opposed to any cap. In a move on Nov. 3, the league pushed the start of the cap back to 2028. Under this revised proposal, the current luxury-tax system would remain in place for the 2027 season. The hard cap and floor would then begin in 2028, accompanied by a 50-50 split of defined baseball revenue.
For the Philadelphia Phillies, the delay provides some breathing room. The club has consistently operated above the luxury-tax threshold under managing partner John Middleton. MLB identified the Phillies as one of eight teams that would have exceeded the cap in its original proposal. With the cap starting in 2028, the Phillies can spend under the familiar luxury-tax system for one more season. However, the team has significant needs at catcher, in the outfield, and in the bullpen. Free agency decisions made this winter will impact the team's payroll when the cap takes effect.
Several players on the Phillies roster are under contract through at least 2028. These players include Kyle Schwarber, Trea Turner, Bryce Harper, Aaron Nola, J.T. Realmuto, Jesus Luzardo, and Cristopher Sanchez. Any multiyear contract signed this offseason will count toward the 2028 payroll. Zack Wheeler's contract expires after 2027. His $42 million average annual value will come off the books before the proposed cap begins.
MLB also proposed other changes to the league's structure. A new minimum salary would rise to $1 million for players with at least two years of service time and $900,000 for those with less. The pre-arbitration bonus pool would increase from $50 million to $65 million. Optional assignments would be reduced from five to four per season. Players would become eligible for the Rule 5 draft one year earlier. Additionally, MLB proposed reducing the regular season from 162 games to 154 games beginning in 2029.
The union rejected the league's revisions. The MLBPA argued that a transition year does not address its core objections to a cap. The union stated that the league's system would reduce player compensation, threaten guaranteed contracts through escrow, and cut amateur signing bonuses. Commissioner Rob Manfred and MLBPA interim executive director Bruce Meyer outlined the divide during news conferences in Philadelphia in July. Manfred said owners were more unified than at any point in his tenure. Meyer rejected the need for a cap to preserve competitive balance, pointing to rising attendance and franchise values.
The next step is for both sides to continue negotiations before the Dec. 1 deadline. The MLBPA has proposed changes to the amateur draft, including retaining the 20-round domestic draft and preserving eligibility for high school and junior college players. MLB has proposed separate 12-round domestic and international drafts, each with a $200 million signing bonus pool. The union estimates MLB's draft proposal would remove more than $1 billion from amateur compensation over five years.
