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Sports · Philadelphia

Phillies face hard cap risk as MLB lockout deadline approaches

Negotiations stall over a $258.2 million salary cap that would force the Philadelphia club to cut spending by 2028.

By Aaron Foster ·

Illustration for: Phillies face hard cap risk as MLB lockout deadline approaches
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Major League Baseball and its players' union are close to a work stoppage as the current collective bargaining agreement expires at 11:59 p.m. ET on Dec. 1.

Owners plan to impose a lockout if no new deal is reached. This action would pause major-league signings, trades, and communication between teams and players, though it would not immediately cancel scheduled games. The previous lockout in 2022 lasted 99 days before both sides agreed to a new contract that preserved a full 162-game schedule.

The primary obstacle is the league's push for a hard salary cap and floor, a concept the union rejects. MLB's latest proposal sets a $258.2 million cap and $180.2 million floor starting in 2028. The league estimates that eight clubs, including the Phillies, would need to reduce their payrolls by a combined $528 million to comply with these limits.

For the Philadelphia Phillies, the timeline offers a brief reprieve. The proposal allows teams to operate under the existing luxury-tax system in 2027. However, the club would face a hard ceiling the following year. Key players such as Kyle Schwarber, Trea Turner, Bryce Harper, Aaron Nola, J.T. Realmuto, Jesus Luzardo, and Cristopher Sanchez are under contract through at least 2028. Any multiyear free-agent signings made this offseason would also count toward the 2028 cap. Zack Wheeler's contract, with a $42 million average annual value, expires after 2027, removing that financial burden before the new system begins.

Commissioner Rob Manfred and MLBPA interim executive director Bruce Meyer publicly outlined the divide in Philadelphia in July. Manfred stated that owners were more unified than at any point during his tenure. Meyer countered that the league did not need a cap to maintain competitive balance, citing rising attendance and franchise values.

Other changes in the league's proposal include reducing the regular season from 162 games to 154 starting in 2029. The plan also alters free agency rules, allowing players who have reached age 30 to become free agents after five seasons rather than six. The union rejected the revision, arguing that a transition year does not address its core objections to the cap.

The two sides continue to negotiate, with the next formal deadline set for the end of the month.

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