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Major League Baseball Commissioner Rob Manfred warned on June 3 that owners’ newly floated salary cap proposal — the first such formal bid since 1994 — could trigger a work stoppage reminiscent of the 1994-95 strike.
Owners argue the current luxury tax system, in place since 2003, has failed to ensure competitive balance as more clubs willingly exceed thresholds; total luxury tax payments rose from $78.5 million in 2022 to $402.6 million in 2025, with nine teams paying the tax in both 2024 and 2025 and the Los Angeles Dodgers shouldering a reported $169.4 million bill.
Management’s plan would cap 2027 payroll at about $245.3 million, set a $171.2 million floor, create a 50-50 defined revenue split and use escrow to claw back excess player shares.
The five-year collective bargaining agreement expires Dec. 1, and owners are expected to impose a lockout if talks falter.
Players have pledged to fight a cap, seeking expanded free agency and arbitration rights, a much higher minimum salary and increased revenue sharing.
MLB also said expansion talks and national broadcast negotiations would be deferred until a new CBA is reached.







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