What happened: Jeff Passan reports on a 125-page MLB proposal for a hard salary cap and floor system. The plan seeks a 50/50 revenue split between owners and players, incorporating an escrow system similar to the NBA and NHL.
Why it matters: The proposal aims to establish competitive balance through a $171.2M floor and a $243.5M ceiling. The union argues the cap would suppress salaries even as teams like the Padres continue to leverage the current free-market system for star talent.
By the numbers: Proposed 2026 Ceiling: $243.5M | Proposed Floor: $171.2M. Target Revenue Split: 50%. NFL Share: ~48%. NBA/NHL Share: 50%.
What to watch: Expect the labor battle to intensify as the current Collective Bargaining Agreement nears its December 2026 expiration.