MLB Owners Propose Salary Cap, Sacramento Pushes Back

California lawmakers argue salary caps won't help small-market teams

Published on Feb. 10, 2026

MLB owners have proposed implementing a salary cap, arguing it will help save teams in small markets. However, lawmakers in Sacramento have pushed back, stating that salary caps are unlikely to benefit smaller market teams and may instead further widen the gap between large and small market franchises.

Why it matters

The debate over a potential MLB salary cap highlights the ongoing tensions between league leadership and local governments over the best ways to ensure the long-term viability of all teams, especially those in smaller markets. This issue could have significant implications for the future of professional baseball's competitive landscape.

The details

MLB owners have argued that a salary cap would help level the playing field and allow smaller market teams to better compete with their larger market counterparts. However, California lawmakers in Sacramento have pushed back on this proposal, stating that salary caps are unlikely to actually benefit smaller market franchises and may instead exacerbate existing disparities.

  • The current MLB collective bargaining agreement is set to expire in less than 300 days.

The players

MLB Owners

The collective ownership group of Major League Baseball teams.

Sacramento Lawmakers

Government officials in Sacramento, California who have voiced opposition to the proposed MLB salary cap.

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What they’re saying

“A salary cap will save teams in small markets.”

— MLB Owners

“Nope.”

— Sacramento Lawmakers

What’s next

The current MLB collective bargaining agreement is set to expire in less than 300 days, setting the stage for potentially contentious negotiations between league owners and players over the potential implementation of a salary cap.

The takeaway

The debate over an MLB salary cap highlights the ongoing tensions between league leadership and local governments over the best ways to ensure the long-term viability of all teams, especially those in smaller markets. This issue could have significant implications for the future of professional baseball's competitive landscape.