Major League Baseball has proposed significant changes to player contracts as part of ongoing collective bargaining negotiations, including a five-year limit on free agent deals and the elimination of contract deferrals. The league’s latest offer comes amid continued disagreement over its proposed $245.3 million salary cap, a central and contentious issue between MLB and the MLB Players Association (MLBPA).
MLB’s proposal would cap contract length at five years for free agents, with a six-year limit for players returning to their current team. This represents a marked reduction from existing contracts, which can extend well beyond that term. For example, New York Mets outfielder Juan Soto signed a 15-year, $765 million contract after the 2024 season. Alongside limiting contract length, the league aims to bar draft-eligible players under 20 and restrict international signings to players age 18 and older, delaying free agency access for young elite talents such as Soto and Bryce Harper, both of whom began their major league careers at 19.
The proposal also seeks to eliminate qualifying offers—an option currently available for free agents—and accelerate free agency eligibility for players aged 30 and above who reach five years of service time instead of six. Additionally, MLB offered to raise the minimum salary for players with at least two years of service from $780,000 to $1 million and to boost the pre-arbitration salary pool by 30%, potentially benefiting high-performing young players.
However, the MLBPA criticized the league’s package as a strategic attempt to suppress player earnings and diminish free market dynamics. In a statement, the union described the proposals as “misleading” and argued they would cost players billions over time by imposing salary caps and restricting contract terms, while also adding numerous limits on bonuses, awards, and contract performance incentives. The MLBPA maintained that the league’s aim is to maximize owner profits at the expense of player rights and market fairness.
MLB Special Assistant Glen Caplin defended the offer, emphasizing concessions such as elimination of the qualifying offer system and earlier access to free agency—both long-standing union demands—and proposed a “Cornerstone Player” provision intended to give teams a better chance to retain star players. Caplin also framed the minimum salary increase as the largest ever and pledged continued collaboration with the MLBPA to improve the sport for all stakeholders.
The current collective bargaining agreement expires on December 1. MLB Commissioner Rob Manfred has indicated the league is prepared to initiate a lockout similar to the one in 2021 if no agreement is reached. Both sides have one more bargaining session scheduled before the July All-Star break.
The MLBPA reiterated its commitment to player unity and securing a fair deal that upholds free agency rights, encourages competition, and protects the sport’s future. It rejected attempts to divide players and stressed that any gains for individual players must not come at the cost of broader player interests.