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MLBPA's 'Competitive Integrity Tax,' Salary Changes, More Detailed in 1st CBA Proposal to MLB Owners

Zach BacharMay 27, 2026

The MLB Players Association raised several key issues in its first formal proposal to MLB's owners in collective bargaining agreement discussions.

Namely, the Players Association proposed a "competitive integrity tax" for any team that doesn't spend at least $150 million.

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The MLBPA is also seeking an increase in the league's minimum salary from $780,000 to $1.5 million as well as an increase in the base competitive balance tax threshold from $244 million to $300 million.

The MLBPA's proposal contained the elimination of the qualifying offer, an expanded draft lottery to disincentivize tanking and free agency for players with five or more years of service at age 30 as well.

According to ESPN's Jeff Passan, MLB is planning to make its first proposal to the union on Thursday.

The league is expected to formally counter with a "hard cap-and-floor system," per ESPN's Jorge Castillo.

It's worth noting that Wednesday's CBA plan did not include a salary cap.

'We appreciate the union making a set of proposals and we look forward to continuing the bargaining process and working towards solving the competitive balance problem our fans are telling us needs to be addressed," MLB said in a statement. "We understand their proposals are designed to benefit players. Unfortunately, they do not address and in fact exacerbate the competitive balance problem our fans are telling us we must address. The MLBPA's proposal would reduce the amount transferred to lower-revenue Clubs, weaken the Competitive Balance Tax, and lead to even more payroll disparity than exists today. For example, under the Union's proposal, the Dodgers would pay less in luxury tax payments, giving them an additional $70 million to spend on payroll."

The current CBA expires on Dec. 1 and a lockout could be on the horizon if both sides aren't able to reach an agreement.

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