MLB Owners Threaten to Cancel 2027 Season for Salary Cap

Owners believe a salary cap would increase franchise values, despite baseball's strong competitive balance.

Published on Feb. 15, 2026

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According to a new report, MLB owners are willing to sacrifice the entire 2027 season in order to force a salary cap through labor negotiations with the players' union. Owners believe a salary cap would immediately increase the value of their franchises, even though competitive balance in baseball is already the best of any major sport.

Why it matters

The potential cancellation of the 2027 season would jeopardize the recent growth in MLB attendance, ratings, and revenues that has come from rules changes to speed up the pace of play. Owners are taking advantage of some fans' misunderstanding of competitive balance to push for a salary cap that would primarily benefit the owners financially.

The details

Discussions of a salary cap started after the dominant Los Angeles Dodgers won back-to-back World Series titles in 2024 and 2025, with fans calling for measures to curb the team's high payroll. Owners see this as an opportunity, believing that a salary cap would immediately increase the value of their franchises, even though small-market teams like the Milwaukee Brewers and Toronto Blue Jays have found success in recent years through smart player development.

  • The current MLB collective bargaining agreement expires at the end of the 2026 season.
  • The 2027 MLB season is at risk of being canceled if owners and players cannot reach a new labor agreement.

The players

Dodgers

The Los Angeles Dodgers, a high-spending team that has won multiple championships in recent years, have become a convenient target for fans and owners seeking a salary cap.

MLB Players Association

The labor union representing MLB players, who will negotiate a new collective bargaining agreement with owners before the 2027 season.

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What they’re saying

“Owners are angry, too. Their franchise valuations aren't growing as quickly as their billionaire peers' in other sports, and they blame the system that governs Major League Baseball. They don't like it. Nearly every owner believes MLB needs a salary cap. Its presence, owners say, immediately would juice franchise values, with the labor cost essentially fixed and no more chasing Dodgers teams spending $500 million annually on players.”

— Jeff Passan, ESPN reporter (ESPN)

“They think a salary cap will fix everything, even if it means jeopardizing the 2027 season. 'They are ready to burn the f---ing house down,' one high-ranking team official said.”

— Anonymous, High-ranking team official (ESPN)

What’s next

Negotiations between MLB owners and the players' union will continue in the lead-up to the expiration of the current collective bargaining agreement at the end of the 2026 season. If the two sides cannot reach a new agreement, the 2027 season could be at risk of being canceled.

The takeaway

While some fans may support a salary cap to curb the Dodgers' spending, the owners' true motivation is to increase the value of their franchises, not to improve competitive balance. Sacrificing an entire season to achieve this goal would jeopardize the recent growth and momentum the sport has experienced.