Major League Baseball owners formally presented their opening economic proposal to the Players Association in New York on Thursday, revealing a $245.3 million salary cap and $171.2 million salary floor for 2027, the first year of a proposed new labor agreement.

The league is seeking a 50-50 revenue split and proposed a seven-year deal, two years longer than the standard five-year agreement. Under the plan, all local television revenues would become centralized income shared equally across all 30 clubs, a significant shift that affects large-market teams like the New York Yankees and Los Angeles Dodgers.

"The biggest issue we need to solve next to continue to grow the game off the field is fixing the payroll disparity unseen in any other major U.S. sport," said league spokesperson Glen Caplin.

The Players Association rejected the proposal firmly. Union interim director Bruce Meyer cited the 1994-95 strike, which lasted 232 days, as a direct consequence of the last serious cap push.

"Caps don't lower ticket prices for fans, eliminate tanking or ensure teams are run with equal competence," said Meyer. "They suffocate competition by offering owners an all-purpose excuse for inaction and mediocrity."

Twelve franchises would need to increase payroll by a combined $617 million to meet the floor, including the Miami Marlins, Tampa Bay Rays, Pittsburgh Pirates, and Colorado Rockies. Eight clubs, among them the Dodgers, Yankees, and  Boston Red Sox, would need to reduce payroll by a combined $578 million.

The current collective bargaining agreement expires December 1. A lockout is widely anticipated if no deal is reached. A work stoppage extending into 2027 could threaten regular-season games.