MLB suggests salary cap with limits on free agent contracts
Yahoo Sports • 1 min read • Latest: Jun 25, 2026, 6:48 PM
Last updated Jun 25, 2026
Major League Baseball proposed a plan to limit most free agent contracts to five years and 15% of a team's salary cap. This proposal aims to eliminate deferred compensation and is part of a larger salary cap discussion likely to provoke pushback from the players' association. In addition, MLB proposed allowing players aged 30 and over to enter free agency a year earlier. They also plan to raise the minimum salary and increase the pre-arbitration bonus pool. These recommendations come during ongoing bargaining sessions, with a contract expiration looming in December.
- •MLB suggests five-year limit on most free agent contracts.
- •Proposed salary cap at 15% of team salary.
- •Players aged 30 can enter free agency a year earlier.
- •Minimum salary could increase from $780,000 to $1 million.
- •Pre-arbitration bonus pool may rise from $50 million to $75 million.
- 6:48 PMYahoo Sports — MLB proposes limiting most free agent contracts to 5 years and 15% of a team's salary cap
"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 additional 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 as part of a 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.
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