MLB's salary cap proposal shares elements with all three major North American sports leagues but mirrors the NHL most closely, while introducing an escrow system that has become a central point of conflict in ongoing collective bargaining negotiations with the MLB Players Association.
Here is how the existing cap structures in the NFL, NBA and NHL currently operate.
The NFL operates under a hard cap tied directly to league revenue, with players receiving between 48.5% and 48.8% of gross revenue. Teams must stay under the ceiling at all times, with no escrow system. The floor requires each team to spend at least 90% of the cap over rolling multi-year periods. The 2026 cap stands at $301.2 million per team.
The NBA uses a soft cap with a 51/49 revenue split favoring players. Teams can exceed the cap but face escalating luxury tax penalties and roster-building restrictions at the first and second apron thresholds. There is no hard ceiling, though the apron system limits flexibility for the highest-spending clubs. The NBA withholds 10% of player salaries in escrow annually, a mechanism that cost players $480 million last season.
The NHL operates under a hard cap set at $104 million for 2026-27, with players and owners splitting hockey-related revenue 50/50. The salary floor sits at $76.9 million. Teams must be cap-compliant at the season's start, though long-term injured reserve exceptions provide limited flexibility. There is also an escrow system in place.
MLB's proposal features a $243.5 million ceiling and a $171.2 million floor with a 50/50 revenue split, a hard cap structure and an escrow holdback of up to 10%. The MLBPA has resisted all three elements, arguing the combination produces the least favorable cap arrangement of any major professional sport.
With the first round of proposals exchanged, the MLBPA is seeking a competitive-integrity tax targeting low-spending teams, a rise in the base competitive-balance tax threshold from $244 million to $300 million, and hundreds of millions more directed toward players through the pre-arbitration bonus pool and higher minimum salaries. Talks are expected to continue over the coming months, with neither side showing signs of movement from its current stance.