The MLB owners’ first proposal for the next collective bargaining agreement clashes directly with the MLBPA’s interests. As a result, the players’ union believes a work stoppage is inevitable in 2027.

A day after the MLBPA made its opening proposal, the owners have countered with what the association has vehemently protested so far – a hard salary cap and floor. The proposal, obviously, did not sit well with the union. In response, the MLBPA has issued a statement, bringing up the historic 1994-1995 strike and warning of similar consequences once again.

“The owners responded today with a demand for a salary cap system, something generations of players have fought against. The last time the owners made such an explicit push for a cap—over 30 years ago—it led to the longest work stoppage in MLB history,” the statement read, per Jesse Rogers of ESPN.

“For generations, our members have fought against cap systems because they harm players at all levels, erode or eliminate contractual guarantees, pit player against player, lead to more work stoppages, not less, and get worse for players over time. Caps don’t lower ticket prices for fans, eliminate tanking, or ensure teams are run with equal competence. They suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity.”

With the current CBA expiring on December 1, the owners have proposed a ceiling of $245.3 million, setting the floor at $171.2 million, per Rogers.

At present, MLB remains the only professional sports league in North America without a hard salary cap and floor. The only financial constraint the league has is the CBT or ‘luxury tax,’ set at $244 million this year. And the proposed cap for 2027 is just more than a million above this year’s luxury tax.

The last time MLB owners pushed for a hard salary floor and ceiling in 1994, it paved the way for a 232-day strike. The 1994 World Series was also canceled. It ended in April 1995, without a salary cap being implemented.

With the owners appearing determined, this year’s CBA negotiations will prove just how desperate they are for a cap and floor.

The latest work stoppage in league history was initiated by the owners after the 2021 CBA expired on December 1, 2021. The lockout lasted 99 days, ending in March 2022.

But the players’ union has always been against a salary cap.

They believe it’s only a means to fill the owners’ pockets more, rather than making the sport competitive and fair. In their latest statement, they have called it an excuse for “mediocrity.”

Taking this year’s MLB payroll as a yardstick, six MLB teams are spending above the salary cap proposed.

According to Spotrac, the New York Mets have the largest difference at $88 million, and the Los Angeles Dodgers are at $55 million. Meanwhile, as many as fifteen franchises are spending less than $171.2 million, with the Miami Marlins being $92 million behind. MLB’s average salary sits at $181 million.

The owners’ proposal is a stark contrast to the union’s one. But the MLBPA’s opening proposal was designed to improve players’ financial situation and penalize low-market teams.

What did the MLBPA propose?

The MLBPA officially opened the initial phase of the CBA negotiations on Wednesday. They have added several clauses to benefit teams and players financially.

The players’ association proposed increasing the luxury tax to $300 million for the 2027 season. Furthermore, they want to introduce a “competitive-integrity tax.”

This would punish teams spending less than $150 million for not doing enough for roster improvements. The A’s, the Marlins, and the Tampa Bay Rays would have to increase their payroll significantly. However, the MLBPA has not elaborated on what the penalties would look like.

The proposal also included a clause for raising MLB’s base salary to $1 million from $780,000. In addition, the MLBPA wants the players aged 30 years or above to automatically enter free agency after five years of playing.

After submitting the proposal, interim manager Bruce Meyers stated, “Our goal is to preserve and improve baseball’s market system, rewarding competition on and off the field. Additionally, the players’ proposals provide increased revenue sharing, initially guaranteeing every small market Club a minimum of $240m in revenue every season. This enhanced revenue sharing includes added protections to ensure clubs prioritize winning over profiteering. Ultimately, our proposals are designed to build upon the incredible momentum and popularity of our sport worldwide.”

Now, with these proposals and the owners’ contradictions, a long road of negotiations remains ahead, as December approaches.