The salary floor is likely going to face an uphill battle with the players. The current $210 million tier includes a 20% tax, while the proposed $180 million tier would include a 25% tax, which would increase from there. Under the current luxury tax structure, there are three tiers with penalties that get steeper the higher a team’s payroll gets, hence why a team like the Yankees are taking the blasphemous route of actually trying to reduce payroll these days.
Ideally, this helps more players get higher salaries, but at the same time, it would conceivably help more teams remain competitive throughout the season, especially as the playoff field looks to expand permanently moving forward.Īdditionally, baseball’s owners have proposed lowering the luxury tax threshold to $180 million from the current $210 million, which would essentially help teams afford the new salary floor. In this early proposal, a salary floor would be set at $100 million across MLB, meaning every team would have to have a minimum payroll of $100 million or face a penalty of some kind. One idea already thrown out there is the concept of a salary floor. Already there have been leaks to the media over ideas and proposals that are aimed at making MLB more exciting and overall more competitive. With Major League Baseball’s collective bargaining agreement set to expire after this season, there are sure to be plenty of changes in the game by the time the 2022 season roll around (when the season rolls around is another story if things really get contentious).