MLB's Proposed Changes to Free Agency Rules: A Look at the Cornerstone Player Provision and Salary Cap System
Major League Baseball is proposing changes to free agency rules in the upcoming collective bargaining agreement negotiations. The league wants to limit free agents switching teams to five-year contracts, while allowing organizations to retain their own players for up to six years through the Cornerstone Player Provision. The minimum salary for players with at least two years of service time would increase to $1 million in 2027, with additional bonuses for players with less experience.
Players who reach five years of service time by age 30 would be eligible for free agency under the proposed changes, a departure from the current requirement of six years of service time regardless of age. The league's proposal also includes the elimination of deferred contracts and the qualifying offer, while maintaining the existing arbitration system.
These proposals are part of a broader salary cap system that MLB has presented to the MLBPA. Under this system, free agents switching teams would be limited to five-year contracts, with a maximum of 15 percent of the team's payroll and annual salary increases. Teams would be able to sign their own players for up to six years using the Cornerstone Player Provision.
For example, a free agent signing with a new team could secure a maximum contract of 5 years, $202 million, while a team retaining its own free agent could offer a 6-year deal worth $265 million. The league has also suggested a salary floor of $171.2 million and a ceiling of $245.3 million per team starting in 2027.
MLB spokesperson Glen Caplin emphasized the importance of addressing payroll disparity in baseball to enhance competitiveness and fan engagement. The proposed salary cap and floor aim to level the playing field among teams, aligning with other major U.S. sports leagues' efforts to promote parity and revenue sharing between players and the league.