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Why MLB’s latest salary-cap proposal has major implications for Dodgers

Major League Baseball made a proposal on Tuesday that could have major implications for the Dodgers.

Amid ongoing, and already fraught, negotiations with the MLB Players Association over a new collective bargaining agreement, the league amended its polarizing proposal for the creation of a salary cap –– offering to delay the implementation of what would be a $258.2 million cap (and accompanying $180.2 million salary floor) until the 2028 season in order to give clubs “sufficient time to manage their payrolls into the proposed Payroll Range and avoid a significant disruption to the free agent market.”

Whether a salary cap comes to fruition, of course, is anyone’s guess.

MLB Commissioner Rob Manfred in a suit and striped shirt.
MLB Commissioner Rob Manfred mingles with colleagues before a game between the Tampa Bay Rays and Milwaukee Brewers on Monday, Oct. 26, 2026, in St. Petersburg.

The MLBPA has been staunchly against the idea since the league officially proposed it earlier this year. The standoff is likely to lead to a lockout this offseason, once the current CBA expires on Dec. 1, that could threaten the 2027 season.

But if a cap is to be eventually instituted, the Dodgers will now have more time to become compliant.

This past season, their $432.8 million payroll (for luxury tax purposes) was an MLB record. For next year, they already have a projected $388.4 million payroll –– even before making any free agent or trade acquisitions. 

Had a cap been introduced for 2027, it could have forced the Dodgers to drastically slash payroll this winter.

Now, at least, they know they will have a longer period to reshape their roster (and future financial commitments) in preparation for a potential salary-cap system. 

Currently, they are projected to have $302.6 million in salary obligations for 2028, per Cot’s Baseball Contracts, leaving them $44.4 million above MLB’s proposed cap line.

“We recognize that clubs will need a full offseason to prepare to operate within the cap and floor system,” MLB spokesperson Glen Caplan said in a statement released by the league.

Andrew Friedman, President of baseball operations for the Los Angeles Dodgers, speaks at a press conference in front of a backdrop featuring 2026 NLCS logos.
Andrew Friedman, President of baseball operations for the Los Angeles Dodgers, speaks to media at American Family Field in Milwaukee, Sunday, Oct. 11, 2026.

Tuesday’s proposal will do little to quell the uncertainty surrounding the sport this offseason. 

Free agency officially opened on Monday night. But the unknowns of what a new CBA will bring have left the state of this year’s market unclear, forcing players and teams to navigate what is expected to be a flurry of hot stove activity leading up to the likely Dec. 1 lockout –– at which point all major-league transactions will be frozen –– without clarity on what the future financial structure of the league will look like.

This past season, the Dodgers were one of eight teams with a payroll that exceeded MLB’s proposed salary-cap ceiling. Twelve other teams, meanwhile, had payrolls below the league’s proposed salary-cap floor.

If the cap/floor system were to be enacted, it would force all such clubs to maneuver within the league’s salary thresholds.

For the Dodgers, such a reality would likely necessitate the trade of veteran players on lucrative, long-term deals.

The club has 10 players under contract for 2028: Shohei Ohtani, Yoshinobu Yamamoto, Mookie Betts, Will Smith, Tommy Edman, Tyler Glasnow, Blake Snell, Tanner Scott, Edwin Díaz and Kyle Tucker (though he will have the ability to opt out after the 2027 campaign).

They alone account for almost $282 million of projected payroll for that year. And that total will further rise significantly when including salaries for arbitration-eligible and pre-arb players, as well as pre-arb bonus pool and player benefit payments.

Shohei Ohtani celebrates with Mookie Betts after hitting a home run for the Los Angeles Dodgers.
Shohei Ohtani and Mookie Betts, pictured during the Dodgers’ National League Championship Series against the Milwaukee Brewers last month, are two of the players the team has signed to lucrative long-term contracts.

The club has been preparing for a potential salary-cap world. Even last offseason, they operated under the expectation that the league would allow for a salary-cap transition period, which factored into their preference for shorter-term deals when negotiating their free-agent signings of Tucker (on a four-year pact with player opt-outs after Years 2 and 3) and Díaz (on a three-year agreement).

Tuesday’s proposal offered a more specific vision of what that transition could look like. MLB also said it “is willing to discuss additional appropriate phase-in timeline & procedures for implementation of the Salary Cap and Floor.”

Still, much remains to be determined as this offseason rolls along –– and the spectre of a potentially elongated lockout nears.

MLB has been hoping to entice players to agree to a salary cap system by offering other concessions, including earlier access to free agency (after five years of team control, as opposed to the current six-year period), the elimination of draft-pick penalties for free agents who decline a qualifying offer from their previous team (a dynamic that has dragged down the markets for star players in recent years) and substantial increases to minimum player salaries across the board.

However, the MLBPA has thus far rebuffed such efforts, with a wide range of players (including several big-name Dodgers stars) publicly declaring this year that the union would never acquiesce to a salary cap system (MLB is the only major professional sports league in North America with no such hard cap currently in place).

That impasse has left big-spending teams like the Dodgers in a pickle this winter, as they try to bolster their rosters while also accounting for the potential need to become cap-compliant.

For now, at a bare minimum, the league has offered to delay its most drastic proposed changes to spending rules until after next season.

Whether it actually results in the implementation of a salary cap, or gives a team like the Dodgers more clarity while making roster decisions in the meantime, remains to be seen.

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