MLB proposed a hard salary cap to the MLB Players’ Association in New York on Thursday, May 28. It was the first by the league owners since 1994.
The proposed $245.3 million salary cap, which would include benefits, is lower than nine current MLB clubs’ payroll and would require a total reduction in payroll of $578 million.
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Among those nine teams is the Los Angeles Dodgers, who have a payroll of $420,146,940 for the 2026 season, according to Spotrac. That’s the highest in the league, and they’re followed by the New York Mets ($381.85 million) and New York Yankees ($336.56 million).
More: MLB fans should brace for lockout as owners throw down the gauntlet in labor war
Los Angeles will pay just over $169.1 million in luxury tax (competitive balance tax) for the 2026 season. The team paid a record-breaking $169.4 million in taxes for 2025 after constructing the most expensive roster in sports history.
MLB insists the newly proposed salary cap would increase competitive balance in the sport.
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Athletics Lawrence Butler is tagged out by Chicago White Sox third baseman Miguel Vargas as he tires to extend his double into a triple during the eighth inning at Sutter Health Park on April 18, 2026.
(Scott Marshall, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Athletics Lawrence Butler is tagged out by Chicago White Sox third baseman Miguel Vargas as he tires to extend his double into a triple during the eighth inning at Sutter Health Park on April 18, 2026.
(Scott Marshall, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Cleveland Guardians mascot Slider interacts with fans during game against the Baltimore Orioles at Progressive Field on April 17, 2026.
(David Richard, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Washington Nationals right fielder Daylen Lile attempts to catch a ball hit for a single by the Pittsburgh Pirates’ Jake Mangum during the first inning at PNC Park on April 16, 2026. The Nationals won the game, 8-7.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Milwaukee Brewers catcher Gary Sanchez wears a special chest protector to commemorate Jackie Robinson Day during the game against the Toronto Blue Jays at American Family Field on April 15, 2026.
(Benny Sieu, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 13: The Pittsburgh Pirates’ Spencer Horwitz celebrates a home run in the dugout while wearing a welder’s hood during the 16-5 win over the Washington Nationals at PNC Park.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 12: Philadelphia Phillies mascot, The Phanatic, entertains fans with local team mascots for a birthday celebration before the game against the Arizona Diamondbacks at Citizens Bank Park.
(Kyle Ross, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
April 11: The Tampa Bay Rays’ Jonathan Aranda (left) celebrates with Ryan Vilade after hitting a walk-off single against the New York Yankees in the 10th inning of a 5-4 win at Tropicana Field.
(Nathan Ray Seebeck, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Cleveland Guardians’ Jose Ramirez acknowledges the fans after becoming the team’s all-time leader in games played against the Kansas City Royals at Progressive Field on April 6, 2026.
(David Dermer, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A rainbow appears during the fourth inning during the game between the San Diego Padres and Pittsburgh Pirates at PNC Park on April 6, 2026.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A fan dresses as the Pope claps during the first inning of the game between the Chicago White Sox and Toronto Blue Jays at Rate Field on April 5, 2026. The White Sox won the game, 3-0, to complete a three-game sweep of the Blue Jays.
(Matt Marton, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Pittsburgh Pirates’ Konnor Griffin celebrates with a traffic cone after making his major-league debut in a 5-4 defeat of the Baltimore Orioles at PNC Park on April 3, 2026.
(Charles LeClaire, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
A young Red Sox fan meets Tessie the Boston Red Sox mascot before the Red Sox’s home opener against the San Diego Padres at Fenway Park on April 3, 2026.
(Eric Canha, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
(Jayne Kamin-Oncea, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Miami Marlins shortstop Otto Lopez (6) and center fielder Jakob Marsee celebrate a victory against the Chicago White Sox at loanDepot Park on April 1, 2026.
(Jim Rassol, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Fans try to catch a solo home run hit by the San Francisco Giants’ Matt Chapman as San Diego Padres left fielder Nick Castellanos looks on during the third inning at Petco Park on March 31, 2026.
(Denis Poroy, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Philadelphia Phillies mascot The Phillie Phanatic entertains fans during the game against the Washington Nationals at Citizens Bank Park on March 31, 2026.
(Kyle Ross, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Toronto Blue Jays’ Kazuma Okamoto gets doused with ice water by teammates after a win over the Athletics at Rogers Centre on March 29, 2026.
(John E. Sokolowski, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The Cincinnati Reds’ Eugenio Suárez blows a bubble as he waits to bat against the Boston Red Sox at Great American Ball Park on March 28, 2026.
(Aaron Doster, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
The St. Louis Cardinals’ JJ Wetherholt is doused with water by teammates after hitting a walk-off two-run single against the Tampa Bay Rays during the 10th inning at Busch Stadium on March 28, 2026.
(Jeff Curry, Imagn Images)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Fans react as the Milwaukee Brewers’ Jake Bauers homers against the Chicago White Sox at American Family Field on March 26, 2026.
(Jovanny Hernandez, Milwaukee Journal Sentinel)
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Ballpark vibes, big plays and wild celebrations during 2026 MLB season
Two F-35C planes from Air Test and Evaluation Squadron NINE Detachment Edwards Air Force Base perform a flyover before the Opening Day game between the Arizona Diamondbacks and Los Angeles Dodgers at Dodger Stadium on March 26, 2026.
(Kirby Lee, Imagn Images)
How would a hard cap impact the Dodgers?
The Dodgers have used the current salary structure to their advantage, acquiring star players such as Shohei Ohtani and Kyle Tucker in recent years and producing back-to-back World Series championships.
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Current contracts would be grandfathered in, but any future contracts would be structured around the new salary cap.
If the hard cap is implemented, the defending champions would have to (currently) cut $174.84 million to meet the $245.3 million salary cap.
While there are several things that would need to happen before the Dodgers actually have to make any decisions, it may, at the very least, place a sense of urgency on the franchise to make the most of the current success window.
Ohtani has a heavily deferred 10-year, $700 million deal that he signed in 2023. Outfielder Kyle Tucker signed a four-year deal in January worth $240 million.
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Shortstop Mookie Betts (2032), pitcher Blake Snell (2030) and pitcher Yoshinobu Yamamoto (2029) are among the other players at the top of the payroll with long-term deals. First baseman Freddie Freeman’s six-year, $162 million contract expires in 2027.
This article originally appeared on USA TODAY: How Dodgers would be impacted by MLB’s proposed salary cap
