MLB’s latest labor proposal could reshape the financial landscape in a big way, and the Pittsburgh Pirates sit squarely in the middle of the conversation.
The league is now pushing for a salary cap of $258.2 million and a floor of $180.2 million, but not until 2028. MLB says the delayed start would give clubs time to adjust to the new system rather than forcing an immediate overhaul in 2026.
“The projected cap and floor payrolls for 2028 would make 12 clubs increase payroll by $636M to reach the floor, and 8 clubs to decrease payroll $528M to reach the cap,” the league wrote. “Overall, this would net a $108M payroll increase.
“Starting in 2028 would allow a smoother transition into the cap and floor system without delaying key player benefits.”
That proposal lands at the center of the sport’s most important labor fight. Owners want a cap in place, following the model used in the NBA, NFL and NHL. The MLB Players Association sees it differently, arguing it would hold down player salaries.
With those positions so far apart, a lockout is widely expected to begin on Dec. 1, when the current CBA expires. MLB went through a lockout before the 2022 season as well, but that one ended with an agreement on March 10 and didn’t cost any games. This time, though, the presence of a salary cap proposal makes the next standoff feel like it could last longer and even put the 2027 season at risk.
Owners say a cap and floor would create more competitive balance. The union’s view is that it would simply help owners boost franchise values.
For Pittsburgh, the numbers make the stakes obvious. The Pirates’ projected year-end Competitive Balance Tax 40-man payroll is $139.7 million, according to Cot’s Baseball Contracts. That ranks ninth-lowest in the league and sits more than $40 million below MLB’s proposed floor.
The Pirates have also been one of the sport’s quieter teams in free agency. Ryan O’Hearn’s two-year, $29 million deal last offseason became the largest free-agent contract in franchise history for a position player.
At the other end of the spending spectrum are teams such as the Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia Phillies, Toronto Blue Jays, Boston Red Sox, San Diego Padres and Chicago Cubs. All of them had CBT payrolls above MLB’s proposed $258.2 million cap in 2026, and they’re the kinds of clubs that regularly land the biggest names on the market.
MLB’s argument is that a system like this would narrow the gap between the biggest spenders and the clubs that can’t keep pace, preventing wealthy teams from stacking massive contracts every winter while also retaining their homegrown stars.
Whether the proposal ever becomes reality is still an open question. But if it does, the Pirates would be forced into a much different spending lane than the one they’ve traditionally occupied.
For now, they’re stuck waiting on a new CBA and the uncertainty that comes with it. Once that’s settled, the club would have to adjust for 2028 and beyond.
At the very least, a cap-and-floor system would give Pittsburgh more room to keep its own players and pursue outside help.
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