SF Giants set to receive a small boost in financial flexibility in 2026

This is not unique to any one team in baseball, but the SF Giants are set to receive a small boost in financial flexibility from the Collective Bargaining Agreement (CBA) in 2026. The CBT is set to increase to $244 million, up from $241 million in 2025.

SF Giants set to receive a small boost in financial flexibility in 2026

The current CBA will expire next offseason. At that point, the focus in baseball will shift from free agency to ratifying a new CBA. For the past several years, both sides of the CBA table have hinted that a lockout could be looming once this happens. 

The common discussion topics of every CBA revolve around raising the league minimum salary, adding a salary floor, or setting a salary cap. The introduction of the ABS system could add a new dynamic to the discussion.

There are extremes on both sides of the spending spectrum that make a floor or cap unlikely. Baseball does operate with a soft salary cap, but the penalties are not prohibitive to curb spending.

For example, the Giants exceeded the $237 million CBT threshold in 2024, with a payroll of $249.1 million according to Cot's. The penalty included paying a 20 percent tax on the overage.

Since the Giants exceeded the CBT threshold, they also lost their second-and fifth-highest selections in the 2025 draft as well as $1 million in international bonus pool money in 2026 when they signed Willy Adames. Adames had rejected a qualifying offer from the Milwaukee Brewers prior to joining San Francisco, meaning that there was draft and signing capital forfeited with the signing.

Of course, the Giants expect the value Adames brings to the table outweighs the lost capital in that signing. He is off to a good start, as he became the first Giants hitter to reach 30 home runs since Barry Bonds in 2004. Adames reached that mark on the final day of the regular season. 

The good news is that the Giants were able to reset those penalties in 2025. The official CBT numbers have not been published yet, but Cot’s estimates that they had a CBT payroll of $214 million this year, which is well below the $241 million CBT threshold. 

They will receive a small boost in financial flexibility to $244 million in 2026. Whether they use that remains to be seen. The Giants saw a notable increase in attendance this year, so that should encourage them to spend more, but the potential lockout could complicate that plan.

The Giants have six players under guaranteed contracts next season, and five more who could go through arbitration. Alex Pavlovic of NBC Sports Bay Area notes that Patrick Bailey and Ryan Walker may have missed the cutoff to be eligible for arbitration this winter. We will have an update on that once the cutoff is made public. 

San Francisco will need to add a lot of pitching this offseason, both in the rotation and bullpen. They could add an outfielder as well, and platoon bats with leverage against left-handed pitching.

The Giants will have the flexibility to spend in free agency, and should be able to check off several of these needs. The core of the roster is in place, but they will want better support to raise the floor of the roster.