Major League Baseball (MLB) has proposed limiting the length of free agent contracts and eliminating deferred contracts as part of its negotiations with the MLB Players Association (MLBPA) for a new collective bargaining agreement. The league confirmed the proposals via X on Thursday, fueling concerns about a potential lockout.
Under the league's proposal, players signing with new teams in free agency would be capped at a five-year maximum contract length. For players re-signing with their own teams, the proposal includes a "Cornerstone Player" provision, allowing deals of up to six years, a structure MLB likened to the NBA's "Bird Rights" clause.
The proposed maximum for a free agent signing with a new team would be $202 million over five years. The "Cornerstone Player" provision would cap out at $265 million over six years. The proposal also seeks to eliminate deferred contracts, a mechanism used by teams like the Dodgers, notably by stars such as Shohei Ohtani and Kyle Tucker.
Key Concessions and Proposals
In Thursday's negotiations, MLB also accepted two proposals from the MLBPA. One grants free agency to players who are 30 years old with five years of MLB service, a potential shift from the long-standing six-year benchmark. The league also agreed to eliminate the qualifying offer system, which has historically penalized teams for signing certain free agents by requiring draft-pick compensation.
MLB also put forth a proposal for a significant increase in the league minimum salary, raising it from $780,000 to $1 million for players with at least two years of service. For players with less than two years of service, the proposal guarantees $1 million in total compensation if they accrue a full year of service.
A league spokesperson stated that these proposals aim to "level the playing field," allowing more small-market teams a chance to compete, similar to outcomes in other major U.S. sports with salary caps and floors. The spokesperson added that the league accepted "landmark changes to free agency" and highlighted the proposed minimum salary increase as benefitting over half of MLB players.
Union Rejects Proposals, Warns of Lockout
The MLBPA responded critically, calling the league's offers "misleading" and part of an agenda to "suppress player salaries and maximize club profits." The union argued that the proposals, while appearing as improvements, offer little value when conditioned on the league's proposed cap system, which they believe would eliminate the free market and create a zero-sum gain for players.
These negotiations follow a previous disagreement over a proposed overhaul of the amateur draft. Last month, MLB formally suggested a hard salary cap, setting payroll limits between $171.2 million and $245.3 million, a move that would require significant spending reductions from high-payroll teams like the Mets, Dodgers, and Yankees.
MLBPA interim executive director Bruce Meyer expressed strong doubts about avoiding another work stoppage, stating, "it’s highly, highly likely that they’re going to lock us out again." Meyer placed the responsibility on MLB to prevent a lockout, noting that further meetings are scheduled before the July All-Star break.