MLB owners propose a salary cap for the first time since baseball’s 1994-95 strike

Major League Baseball owners made their long-expected salary cap proposal to the players’ association on Thursday, a system the union has vowed never to accept, setting the sides on course for a confrontation that threatens the 2027 season and perhaps beyond.

Baseball owners hadn’t proposed a firm cap since 1994. Their effort prompted a 7 1/2-month strike that forced the cancellation of the World Series for the first time in 90 years.

MLB’s proposal would cap spending in 2027 at $245.3 million, using figures for luxury tax payrolls that include $20.1 million for benefits and the pre-arbitration bonus pool. It also would establish a payroll floor of $171.2 million, forcing some teams to spend more. The Los Angeles Dodgers, baseball’s biggest spenders, had a $415.2 million payroll on opening day this year — around $170 million over the proposed cap.

“The cap is pretty much a nonstarter,” Pittsburgh outfielder Bryan Reynolds said.

Owners said they would discuss with the union both a phase-in schedule that would give teams like the Dodgers time to comply with the cap and an escrow system as part of a proposed seven-year deal. In an escrow system, a portion of a player’s salary is withheld to ensure the ...