Here is what a salary ceiling and floor might look like

The subject of a potential work stoppage in 2027 to see owners impose a salary cap is becoming increasingly important.

We know that the majority of team shareholders are tired of seeing the Dodgers and Mets spend recklessly, creating a significant gap and preventing MLB franchises from increasing in value to the same extent as other major sports in North America.

So now more than ever, owners would be willing to stick together to achieve their goals.

Jon Heyman, of the New York Post, reports that he has been told that the owners have never been so united in their goal of finally imposing a cap. They have reportedly assembled a reserve of more than $2 billion to help themselves.

https://t.co/FTkFtSD9gI With lockout looming, sources say teams have assembled a $2B-plus war chest (and players have a big one, too). Ominously, teams seem nearly unanimous on a salary cap. Says one source: “I have never seen the clubs more united.”

— Jon Heyman (@JonHeyman) February 19, 2026

Players would also have a certain amount set aside.

Obviously, as you might expect, players will fight for the opposite. And the sudden change in leadership at the Players Association doesn't change that: they don't want owners imposing a salary cap on them. Bob Nightengale discussed this in an article.

New MLBPA chief Bruce Meyer insists it will be business as usual on union stance: Hard no on salary cap and retention of salary arbitration. https://t.co/zYdW3L31k0

— Bob Nightengale (@BNightengale) February 20, 2026

But what would that look like in concrete terms, in terms of money?

According to current rumors, the salary floor (because yes, there would also be a floor) would be between $140 million and $160 million. The ceiling, on the other hand, would be between $260 million and $280 million.

This is obviously very preliminary—and it would involve a grandfather clause so that teams above the projected ceiling wouldn't have to cut a bunch of guys in a year.

Raising the minimum salary and reducing the length of service required to reach arbitration and free agency are also options on the table if a cap were to be adopted.

“The initial, but, again, very preliminary, sense was that the floor for a first cap proposal would be in the $140M-$160M range and the ceiling $260M-$280M, and that it would have to be grandfathered in for a few years.”

“Ownership is willing to discuss significantly raising the… https://t.co/KmRN0uogsx

— Brandon Wile (@Brandon_N_Wile) February 20, 2026

In 2025, if we take the total money spent by teams in Major League Baseball, we see that five teams were above the $280 million mark and six were above $260 million.

This includes the Mets and Dodgers at $400 million and $393 million.

On the other side of the spectrum, seven clubs were under $140 million and five others were between $140 million and $160 million. Several of these teams began to increase their payroll this winter.

This meant that only 12 teams were between $160 million and $260 million according to the total cash data.

Created by humans, assisted by AI.