MLB is unique because it doesn’t follow a salary cap system. The league has evolved over the years and will continue to do so. It is implementing the ABS System and making changes along the way. It’s just like any other sport.
Unlike the NBA, NFL, and NHL, MLB does not have a salary cap. Instead, it adheres to the “Competitive Balance Tax” system, which is commonly known as the “luxury tax.” Teams are not restricted to spending but have a threshold that changes every year.
However, insider Jeff Passan fears that they might consider implementing a salary cap in the future. Passan shared a fearful insight on the same, believing this could affect many.
“I hope they don’t push for it, because if they do, we’re not gonna see baseball. If they do, that means they are prepared to shut down the sport. Unless something miraculous happens, MLB is going to lock out the players in early December of 2026,” Passan said.
If MLB leans into pushing for a salary cap, you can expect them to lock out the players in December of 2026, says @JeffPassan.
— Foul Territory (@FoulTerritoryTV) March 25, 2025
"Is it worth it to take a great era of MLB, that we are in the midst of right now, and absolutely torpedo it in pursuit of financial gains?" pic.twitter.com/ciivgZlor8
“Is it worth it to take a great era of MLB, that we are in the midst of right now, and absolutely torpedo it in pursuit of financial gains? There is sanity guys to be found in negotiation, in a non-cap system. I’m just curious if major league baseball owners are gonna agree with that said,” Passan continued.
MLB Gets Mixed Reactions With Their Idea Of Implementing A Salary Cap
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Passan is one of those guys who is not in favor of having a salary cap system. On the other hand, several feel that having one in place is essential. Large market teams like the New York Yankees, Los Angeles Dodgers, and Mets have the ability to spend freely.
That said, small market teams are highly affected by this system. Many believe that a salary cap will be an equal opportunity for all. More than half the teams are unable to acquire top free agents like Juan Soto and many others. Bringing a salary cap will be an equal opportunity for all.
Yet, some fans believe that a lockout will destroy the progress and spoil the great era of baseball. Some also feel that contract deferrals must be eliminated. It’s a tough decision for the MLB. It’s unsure if they will implement the system after this season, but they are certainly considering it.
Meanwhile, former Yankees star Brett Gardner has revealed what caused the tragic death of his 14-year-old son.
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