Major League Baseball is the only major U.S. sports league without a salary cap, but team owners are considering adding a salary cap and floor as the league heads towards a new Collective Bargaining Agreement in December 2026. The players’ union has historically been against a salary cap, leading to concerns of a potential lockout next year. MLB’s spending gaps between teams have led to calls for reform, as some teams spend over $200 million while others spend less than $100 million on players.
Critics argue that this competitive imbalance affects fan enjoyment and retention of star players in smaller markets. While the MLBPA opposes a salary cap, some believe that tying salaries to revenue, as in other leagues, could benefit players. The league is also facing challenges in terms of local media revenue discrepancies, with large market teams earning significantly more from regional networks than smaller market teams.
MLB is aiming to capitalize on their national media rights deals expiring in 2028 by selling more packages of games to new and old media partners, similar to the NBA’s recent $77 billion deals. However, industry experts are skeptical about MLB’s ability to secure a blockbuster media rights deal, especially in comparison to the NBA and NFL. A potential salary cap could help MLB address revenue disparities if they are unable to generate significant TV rights fees.
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