MLB proposes limiting most free agent contracts
Attorney Bruce Meyer, the current interim executive director of the Major League Baseball Players Association, speaks at a news conference in New York on March 11, 2022. (AP Photo/Richard Drew, file)
Major League Baseball proposed limiting most free agent contracts to five years and 15% of a team’s salary cap and to eliminate deferred compensation, fleshing out details of a salary cap plan likely to spark a confrontation with the players’ association.
During a bargaining session Thursday at the union’s office, MLB said it would accept the union’s proposal granting free agency a year early for players who have reached age 30 if the union accepted the league’s salary cap system. MLB also proposed boosting the minimum salary from $780,000 to $1 million for those with two years of big league service.
MLB also proposed increasing the pre-arbitration bonus pool from $50 million to $65 million next year and $75 million by 2032, the sixth season of MLB’s proposed seven-year deal.
“These misleading offers are designed to look like ‘improvements’ but are of little or no value, given they are expressly conditioned on agreement to the league’s cap system which eliminates the free market, and ensures gains for one player only come at the expense of another,” union head Bruce Meyer said in a statement. “While MLB claims to be acting in the interest of fans, their proposals thus far are entirely consistent with owners’ long-held goals: suppressing player salaries and maximizing club profits.”
MLB also said it would agree to eliminate the qualifying offer for free agents that since its inception in 2012 has restricted the market for some players.
Bargaining started May 13 for a contract to replace the five-year deal that expires Dec. 1, and owners proposed a salary cap for the first time since the union fought off the system during a 7 1/2-month strike in 1994-95. MLB is expected to impose a lockout in December, halting free agent signings and trades.
“Owners’ attempts to pit players against players are nothing new,” Meyer said. “But they’ve failed in the past and will fail again now, because PA members remain unified.”
After the prior agreement expired in December 2021, intensive bargaining did not start until late February as the threat approached of losing regular-season games — along with revenue and salary. The sides reached an agreement on March 10, the 99th day of the lockout, preserving the 162-game schedule.
In the league’s cornerstone proposal, made last month, team spending would be capped next year at $245.3 million, using figures for luxury tax payrolls that include $20.1 million for benefits and the pre-arbitration bonus pool. It also would establish a payroll floor of $171.2 million, forcing several teams to spend more. The two-time World Series champion Los Angeles Dodgers, baseball’s biggest spenders, had a $415.2 million payroll on opening day this year — around $170 million over the proposed cap.
“The biggest issue baseball fans want solved to strengthen the game is fixing the payroll disparity that leaves too many fans without hope of their team competing for a World Series title,” MLB spokesman Glen Caplin said in a statement. “Every other major U.S. sport has tackled this problem, and every year more small market teams in those leagues have a chance to win. The salary cap and floor proposal levels the playing field.”






