• Loading stock data...
Wednesday, May 7, 2025
Join us May 14 at 1 p.m. ET for Future of Sports: Leagues of Their Own Register Now

MLB Owners Propose $100M Salary Floor

  • MLB and its players association held their first in-person meeting of the year.
  • During the meeting, MLB owners proposed a $100 million salary floor.
manfred_at_microphone
Jayne Kamin-Oncea-USA TODAY Sports/Design: Alex Brooks

In the first in-person meeting this year between MLB and its players association, baseball owners proposed a novel idea: a salary floor.

The owners’ concept would introduce a $100 million payroll minimum for MLB’s 30 teams and a lower luxury tax threshold, per The Athletic.

The current system introduces a 20% tax on payrolls over $210 million. The owners’ proposal would lower the threshold to $180 million, raise the tax to 25%, and introduce additional tiers at higher levels.

Funds from the tax would go to smaller-market teams, as they do now.

  • Seven teams have projected 2021 payrolls below $100 million.
  • Eight others would currently exceed a hypothetical threshold of $180 million.

The MLBPA has sought to incentivize teams to spend more and would likely resist a lower luxury tax threshold. 

The players have pushed proposals that would allow them to reach free agency sooner. MLB players typically play their first three years at league-minimum salaries, followed by three years under team control with salaries dictated or informed through the arbitration process.

This leads to many scenarios in which salaries do not correlate with production.

American League MVP frontrunner Shohei Ohtani is making $4.25 million this year — almost exactly league average ($4.2 million). Breakout phenom Vladimir Guerrero Jr. is making a league-minimum $605,400.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Milwaukee Brewers Hot Dog Club promotion

Brewers Undo Sales Tax on ‘Free’ Hot Dog Promotion

At least one fan was outraged by a surprise charge.
Apr 11, 2025; Salt Lake City, Utah, USA; Utah Jazz guard Svi Mykhailiuk (19) shoots the ball during the second half against the Oklahoma City Thunder at Delta Center.

Why Money Is Flooding Into Utah Sports

Utah is vying for a new MLB franchise.

Ted Cruz: ‘Why Is It So Hard Just to Watch the Game?’

“Streaming may well be the future, but it shouldn’t sideline the fans,” Cruz said.
Front Office Sports
exclusive

Jayson Werth: Winning Belmont Stakes ‘Comparable’ Emotions to World Series

Werth spoke to FOS at Churchill Downs about the race day high.

Featured Today

Fat Perez reacts after hitting his shot on the 16th tee during the WHOOP Shot at Glory on the 16th hole at TPC in Scottsdale on Feb. 5, 2025.

Golf Influencers Are the New Currency for PGA Tour and LIV

YouTube golf is big business. The rival tours are staging formal events.
Feb 8, 2025; New York, New York, USA; New York Knicks assistant coach Rick Brunson talks with New York Knicks guard Jalen Brunson (11), forward Mikal Bridges (25), and guard Josh Hart (3) during a timeout in the third quarter against the Boston Celtics at Madison Square Garden.
May 6, 2025

Before the Villanova Knicks, There Were the Kentucky Celtics

Three decades ago, Boston tried its own version of the college-teammate experiment.
Mar 22, 2025; Miami, FL, USA; Joao Fonseca (BRZ) reacts after winning a point against Ugo Humbert (FRA)(not pictured) on day five of the Miami Open at Hard Rock Stadium.
May 6, 2025

João Fonseca Is a Teen Tennis Phenom. His Parents Are Overseeing His..

The Brazilian is forgoing a management team in favor of his parents.
Athlos
May 4, 2025

Nike Wants to Pull Off the First Women’s Sub-4:00 Mile

Experts speak on whether Nike’s “moonshot” is realistic or a gimmick.
FIFA

Saudis Awarded 2034 World Cup in Uncontested Vote

Saudi Arabia was the only option after Australia decided not to bid.
May 20, 2024

Top Sports Business Jobs This Week (May 2024)

Each week, our staff combs through the thousands of job listings from…
The stands at the Solheim Cup
September 13, 2024

LPGA Apologizes for Solheim Cup Fan Bus Debacle That Left Stands Half-Empty

The USA-Europe women’s team golf event teed off Friday morning.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Portfolio Players is our bi-weekly spotlight on the athletes and investors reshaping the business of sports. This week, venture capitalist Kai Cunningham unpacks why athletes land top deals and how the usual investing rules don’t always apply.
October 3, 2022

Real Madrid President Renews Call for Super League

Real Madrid’s president believes that soccer is losing ground.
August 10, 2022

PGA Tour Touts Projected Earnings to Keep Players

The PGA Tour is asking its players to consider their potential futures.
August 10, 2022

Bayern Munich to Make Growth Push in U.S. Market

Bayern Munich is looking to expand its reach in the U.S.
Nintendo-logo
August 3, 2022

Nintendo Profits Underwhelm, Switch Sales Decline

Nintendo failed to meet expectations in the company’s latest earnings report.