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Category Archive:
Will baseball ever have a salary cap?
| | Comments (18)

It didn't take long at all after the Yankees to agree on a contract with Mark Teixeira before the owner of the Brewers called for a salary cap for the sport.

Yes, baseball needs a cap in the worst way. Will it ever happen? That seems unlikely.

The Yankees are playing by the rules. But when the salaries of just two of their players equal the Rays' entire payroll, the rules need changing.

Buster Olney says there's already some outrage in the sport over the Yankees' spending spree. I'm sure their owner, Hank "I'll shop till I drop" Steinbrenner, doesn't want any cap. Only those you put on your head.

The owners have tried for years to slow spending and salaries without much luck. The players association has beaten them at the negotiating table for a long time and the players now hold all the cards and greenbacks. Heck, it takes six lawyers and an arbitrator just to get a rainout rescheduled.

Don "I know what is best for baseball" Fehr would never hear of a cap. It would probably take an owner lockout in 2011 to have any chance to get one. With today's salaries, a player making millions would not be hurt by missing one season's worth of checks.

Would the owners have to shut down the sport more than a year to get a cap implemented? Could the sport, or any sport, come back from that?

Some will say that baseball has never produced more revenue and the game is healthy. They'll point out that smaller market teams like the Marlins and Rays that have won or competed in a World Series.

Sure you can beat the Store Bought Yankees in a short series in October. But how can you compete with them and Boston in one division, going head to head with them and their checkbooks over six months?

If you're the O's, you have little choice but to build from the farm, hope to make a few shrewd trades, sign a free agent or two and hope to catch lightning in a bottle like Tampa last year.

Even if a cap were negotiated in 2011, it would need to be phased in over years. So any cap relief for this sport is many years away, if that. For the time being, that New York empire will simply become even more evil.


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18 Comments

Dave said:

Stop going to games. Stop buying MLB licensed junk. Stop watching and listening to games. Start spending the summer playing ball, or coaching ball, or volunteering at the local community center, YMCA, or Boys Club. That's how you get a salary cap.
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That would probably do it. Many fans have tried various boycotts of various sports at various times. Of course it never works, but some fans are fed up with the salaries, etc, like you and aren't ever coming back. - Steve

Robert People said:

Steve,

Part of me says that if the Yankees want to spend that money, yet come up short as they have since they last won the World Series (2000, I believe), then more power to them. In many cases, stacking a team with players with huge contracts doesn't always work. As you said, which is a great point, a player can miss a year and it not hurt them at all.

I think seeing the smaller market teams having success is much better for fans and the game than to see teams with contracts like the Yankees do. The reason I say that is because we all know that it's easy to say "It's not about the money" when I'm pulling in 6 figures twice a month. With teams having players not getting paid that much, you see that they are playing more for the love of the sport than the contract. So much of that is missing these days.

Not sure if that makes sense, but if the Yankees win, it's more like "yeah, well...". But seeing the Rays get where they have, the Marlins a few years back and the Rockies as well, I think that means a little more to the fans, even those of us that don't support those teams.
________________________________________________________

Good points, Robert. The way the Yankees are piling up talent, it's going to be very hard for them not to win. At least in the regular season. Not even Joe Girardi could screw that up, could he? - Steve

Holgash said:

Steve,

Great points. Everyone who wants to oppose a cap and say that baseball is in a greater state than ever before makes the argument about teams like the Rays, Tigers, Phillies, Marlins, and so on. The problem and reason that there needs to be a salary cap is that none of these teams can hold on to their major marquee players when they become free agents because the Yankees, Red Sox, and a few others can pay more than them and sign them. Sure these teams can compete but not year in and year out because once their star players hit free agency they are gone. Then, you can argue that they just need to develop a great farm system that can just keep producing great players, this is very difficult to do and usually means you have to take a year or two to rebuild every few years. It takes a lot more talent to build a team through the farm and signing a few complementary veterans to help the young players make the jump, than through signing every high priced free agent and having the highest team salary in baseball. Baseball needs a cap around 150 million, these players make too much money already they do not deserve anymore.
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Very well stated. As you said it is harder to build a team through the farm than just buy one. But what good is building a winner if you just have to turn around and lose the players like the Marlins did. Maybe this NY spending spree will force the owners in the game to wake up for good and get the cap. - Steve.

Frank said:

I'm a fan of the Pittsburgh Pirates (unfortunately) and I must say, I really don't think baseball needs a salary cap. If I had a vote, I'd say implement one, but MLB is doing just fine as it is. People have knee-jerk reactions to these free agent signings are really missing a lot of the big picture. Competitive balance in baseball is very high right now. That is what is important. Compare the competitive balance in baseball to sports which do have salary caps like football (where the New England Patriots have been in 4 Super Bowls, winning 3 in the past decade while a team like the Bengals has only won 25% of their games in the last 16 years) or basketball (where we have seen only 6 different teams win the last 25 titles---MLB has had more teams win the title this decade). Every year I hear about the "exceptions to the rule." The 2003 Marlins were the "exceptions," the fact that 3 of the final 4 teams alive in 2007 were in the bottom third of payroll was a "once in a lifetime occurrence," the 2008 Rays "caught lightning in a bottle and it will never happen again." It's amazing! The Discovery Channel should do a special on how MLB has "once in a lifetime" occurrences every single year. The bottom line is, the Orioles don't compete because Peter Angelos makes bad decisions and worries more about the Nationals moving in than fielding a good product. The Pirates don't compete because Bob Nutting is a greedy man who only wants to line his pockets. My final few points: First, the guy who said "stop going to games." That is fine-I agree that these salaries are ridiculous. But let's not forget Ben Roethlisberger made $27 million this year. Don't just blame baseball. Second, I remember the fall of 2000, when the Yankees signed Mike Mussina. "The rich get richer" everyone cried. "Just hand them the next five World Series," was another complaint. Sure, the Yankees had a good run in that time, but, Mr. Mussina recently retired without a World Series ring to show for his great career. Finally, I'm not saying the Yankees aren't going to win a title (or a few) with their new players, they very well might. But since salary caps are only a small piece of a sports success (read again--the same teams have dominated the NFL the last 8 or so years), MLB would do irreparable damage to itself if it missed any part of a season to get a salary cap that wouldn't improve things much, if at all.
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Frank:

I hope baseball doesn't miss a season either. Yes, different teams win in a short series, but the Yankees dominated in the AL East. If your team had to butt heads with them every year IN THIS DIVISION, you might feel differently. Not until Tampa this year did one of those small market teams break through in the AL East.

The Orioles were 46-43 this year vs. teams outside of the AL East. In another division they might have finished over .500 but they have to play so many games vs. the big money Yanks and Sox. The East is the beast. - Steve

team2pass said:

It is a tough pill to swallow because we are in the same division with the two major spenders in MLB, but I find it funny to see the Brewers owner go up in arms about these large contracts.

1. If these two teams win, higher viewers on FOX, YES, NESE, ESPN.....equal higher revenue sharing.

2. More fans in stands in case these teams come to your park.....equal higher revenue for ticket sales.

3. MLB taxes these teams and money goes to the other onwers.

Basically, these guys make money off the Yankees and Red Soxs. BUT....They do not have to face them 32 times a year.

Salary Cap and Competitive Balance is a catch 22. Some of these owners want their cake and eat it too. Some owners speak out against all of this spending, but they are cashing that MLB check simply because the Yankees and Tigers were playing within the rules.

I bleed Orange, but it is also a system that both sides generated. I just think it is un-fourtunate we see them 32 times a year. If we were in the AL Central or West, this might be an non-issue for us because the Orioles could still be contenders year in and year out.
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It's worse than you thought as they play Boston and NY a combined 38 times, nearly 25 percent of the sked. They went 13-25 in those games. They had a winning record vs. the AL Central and vs. the NL. - Steve

TX O's Fan said:

Steve,

All one has to do is look at what a cap system has done for other sports. The NFL has never enjoyed more success, and in general most fans feel like their team has a shot at the beginning of the season. Can an O's, or Pirates or Royal's fan say that? If we need a lock out season, then so be it. If the players association holds firm on no cap, which they will, then if I'm Bud Selig, then I realign the divisions. Put the Yankees, Redsox, Angels & Toronto or Detroit in one division (3 divisions, labeling them: I, II, & III) and split up the other two divisions based on geographic location (east or west). In the NL you can put Dodgers, Mets, Cubs, & Giants in the money sweepstakes division. In other words, let the big spenders compete against one another for a playoff spot, then add 3 wild cards. And for the team with the best record in each league, a 1st round bye, and home field advantage throughout the playoffs. The division with the big spenders could be flexible and could be added or removed based on the team's total salary level for the upcoming season.

Far fetched, but at least it addresses the issue of teams that don't have the ability to print their own monopoly money, and actually makes it fun again to be a fan of any team.
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You are right, check out football where teams seem to go from last to first about every year. The Ravens are the opposite of the Orioles, playing in a division this year with four built-in wins and only one other good team. The O's have no built in wins and four good teams. Ravens fans wouldn't like it if the Steelers and Browns spent 200 million on payroll every year to Baltimore's 70 million. The Ravens would then finish third every year. - Steve

M Payton said:

No salary cap in baseball is necessary. Baseball is fine. No other sport can boast this parity in its champions-

08 Phillies, 07 Red Sox, 06 Cards, 05 White Sox, 04 Red Sox, 03 Marlins, 02 Angels, 01 Diamondbacks, 00 Yankees. Even the Yankees prior to 2000 won based on farm system talent.

Money does not win championships. If anything is done, it should be no cap on players that are resigning with their old team (for example Huff, Roberts and Markakis could resign or extend with no cap). If there is a cap, it should apply only to acquiring new free agents to a particular team (for example Texiera, Sabathia and Burnett would fall under a soft cap of some sort).

Go Orioles!

M Payton
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Where has the parity been in the AL East from 1998-2007 ? Steve

CMA said:

So I just flipped on MASN to an utterly depressing sight. Replay of Cal's 2131 game. The stands are packed, flashbulbs going off everywhere, and Cal is trotting around the stadium to "We want Cal!". How could this happen?
____________________________________________________________

How could what happen? - Steve

Rick said:

Salary cap leads to parity. Parity leads to eternal optimism for the NFL fans everywhere (except maybe Detroit). Look at the NFL teams that did poorly last year and are going to the playoffs this year. There are very few teams who are "out of the race" before the season starts in the NFL - unlike baseball. The Yankees may lose a short series, but they are virtually guaranteed to be playing meaningful games in late September ... year after year. Once a decade they may have a poor season, but that will be a fluke. Conversely, teams like the Orioles, Rays and Jays are playing for that once in a decade chance to end up ahead of the Yankees/BoSox.

MLB sucks - that's all there is to it. The owners apparently don't care enough to make a change. It will take the total collapse of MLB for there to be any chance of change. I personally look forward to the total collapse that will lead to salary caps and parity. The fans need to figure out how to facilitate the collapse sooner rather than later.
________________________________________________________
I agree with a lot of what you said, Rick. I just hope there is no "collapse" needed to get some things straight in this sport. - Steve

Dave said:

Here's my salary plan. Let's start acknowledging that baseball is a team sport. The new rule is: The highest paid player on your 40 man roster can only make 20 times the lowest paid salary. If you want to pay someone 20M, everyone else makes 1M minimum.
__________________________________________________________
Be tough for that to work. Right now the ML minimum is around 300-K, so tops could only be 6 million. The owners want to bring down the top salaries, not escalate those at the bottom. - Steve

CMA said:

Steve,

How could this happen? It was a rhetorical question, but I was referring to the total collapse of Orioles baseball. 11 straght losing seasons and such. It just made me sad to think of where we were at that point and where we are now.
_____________________________________________________________
Chris:

A great moment for Cal, but in 1995 the O's were working on their 12th consecutive season without a playoff appearance. The drought ended the next season with a wild-card berth. There is no total collapse. So they didn't get Tex, I wanted him here too. They still have Roberts, Markakis, Jones, Guthrie, Weiters, Matusz, Tillman and so on. The cupboard is far from bare, some just don't want to see it. Still they are in the toughest, biggest spending division in the game, so tough times remain. - Steve

Phil said:

Steve,

I think the idea of a cap sounds good at first, but it doesn't keep the Yankees from having the money. A large part of the reason that the small market teams you've mentioned have been able to be successful lately is because of the "shrewd" signings and trades, which NY could also make, and good scouting, both in the US and internationally. If you put a cap at, say, $150 mil, then a smart Yankees team would take the other $60 mil or so they're used to spending and re-invest it more wisely into scouting and player development. While I wish there could be more parity, at the same time, a salary cap could just awaken the beast, and actually make the Yankees efficient at what they do, beyond just signing the highest-priced players in baseball. They'd be able to spend the "extra" money more efficiently, meaning that they'd have the best $160 mil payroll, even if their payroll couldn't exceed any other club's.

Also, and this is off-topic, but is there any word on what the non-signing of Tex means for B-Rob's future in the Charm City? I hate to say it, but I feel like he may have to be traded at this point for pitching depth, though I don't want to think about who would replace him at 2nd. Any thoughts on the ramifications for Roberts?

Thanks as always for the posts.
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Phil:
But even if the Yankees could put a lot of extra money in player developement there are still no guarantees there. Money alone can't make a team draft the best or create the best prospects. Good old fashioned scouting and teaching are still important there. When you sign the best players you don't have much worry about the developement end, because you get them at the height of their "developement." Also, just because Tex was not signed doesn't mean the O's have "extra" dollars for B-Rob. I still think the club wants to resign him and will, IF B-Rob really wants to here. Otherwise he will likely be dealt. - Steve

Ryan said:

I like the way the profit sharing is set up, the problem is some teams are scum baggy. For Instance, the Yankees have the nerve to ask for tax free bonds and loans and grants from tax-payers to buy their new stadium in the middle of a recession. Then, what do they do? They go out and spend a ton of money on players. I mean, come on. If I were the NYC Councilman in charge of ratifying that one, I'd have a long hard time making my decision. Also, I think the profit sharing should be increased.
But, the main thing, I think the Best part about the NFL is not the cap, but the MINIMUM.... If fans go to games and their team is making money, then they do not go out and spend what needs to compete, its sick. I am not going to mention any names........O....k?
____________________________________________________________
OK, Ryan. Yes, if some teams can only spend 30-40 million on players, they should not be in baseball. But keep in mind some of the low spending teams are also the low revenue-producing teams, so there is a method to the ways of some.

Steve

Dave said:

Steve,
That's why it should work (I don't know what the right number is, just the concept). There are a lot more players at the bottom than the top. Is the union there only for the superstars? If the players that know they'll never get multi-year, multi-million dollar contracts, they should look to insure their financial future. There would be no Yankees, and no 180M Tex deals, if there were no teams to play, and no 300K players to beat up on.
I understand we are an all in, everything or nothing society. But just like the financial markets today, when enough people get nothing, things start to change. Just my 2 cents.
_________________________________________________________
Doubt the union would go for it, but we need some change. Thanks for sharing your thoughts, Dave. - Steve

Ken Francis said:

Steve,

The Major League Baseball Players Association is, of course, just a euphemism for union. Now, while I believe unions have their place in America, some get more power than is good for commerce, which is one of the reasons why many companies have outsourced jobs overseas. (As in "Hello, you've reached Dell Customer Support. My name is Prakash. May I please have your Express Service Code or Service Tag number?")

The MLBPA is one of the most powerful, and as it now stands, destructive, unions in the nation. At one time it served a useful purpose, but now it's gone out of control. Case in point, the 1994 players' strike. That year the average salary was $1,188,679, which represented a 6.1% increase over the 1993 figure. The minimum salary for '94, by the way, was $109,000; not exactly near the poverty level.)

In other words, the height of absurdity (insanity) happened: For the first time in the history of the world, millionaires went on strike. (Yes, there were players making a million who participated in prior strikes, but never before had the sport seen a strike where the average player was making a seven figure income.)

As you say in so many words, MLBPA's Executive Director, Don Fehr, effectively has a stranglehold on the game, making a salary cap all but impossible at this time. Granted, the richest owners such as the Steinbrenners and John Henry have no problem with the lack of a cap, because it would curtail their spending. (Is there some sort of collusion between them...and Fehr! LOL)

As long as I'm on the subject of the Steinbrenners, if I'm the Yankees I"m on the phone to Mike Mussina and urging him out of retirement, using the three recent mega-signings as an enticement. ("Come back for one more year and you'll get your World Series ring. We now have a roster that's more of a lock to win it all than any team you played on!") I don't know if Moose would bite, but adding him to that rotation would make it as good as any in baseball.

Concerning Teixeira, you were right about us finding out whether he really meant all those great things he said about the Orioles. Unfortunately, we found out that he hadn't meant them. On the subject, I thought you'd be interested to know that in a response to one of my postings on Peter Schumck's blog, the Sun reporter told me that he had on a few occasions asked Tex about coming to the Orioles, but the replies were always noncommital.

It figures. But if you think about it, Steve, in retrospect the signs were there for all to see when Teixeira opted to attend Georgia Tech rather than a Maryland school. Granted, the Yellow Jackets had a better baseball program than any in-state college back then, but in any case his going there proved a harbinger of things to come.

Incidentally, since Tex's signing I've read it alleged by someone who claims to have known in hign school that he was telling people that the Yankees were his favorite team. Heresay, but it makes you wonder, no?
__________________________________________________________

Thanks for the comments. When it comes to Tex I'm worn out and over the talk about guys who knew him in high school, in the neighborhood, etc. Plenty of those "insiders" insisted he would be an Oriole. - Steve

M Payton said:

No salary cap on players a team drafts or trades to acquire. A $40 million cap per season(in today's dollars) on free agent acquisitions. This way, players get what they want-the ability to get as much money as they can get on the market. The MLBPA will have no reason to stop this idea.

Teams like the Yankees would be able to sign at the most, two of Sabathia, Burnett and Texiera. In this example, using the order of this year's Yankees signings, the Yankees get Sabathia and Burnett, Tex gets similiar money from the Nationals (if he was going to the highest bidder) and the top talent gets spread around a bit. The beauty of this is that there is no restriction on any team, like the Orioles, making Roberts, Markakis and Weiters the highest paid players in their respective positions, thereby keeping players from our system and allowing home grown talent to get fair market value.

Go Orioles!

God bless and Happy New Year,

M Payton
______________________________________________________
Interesting. Thanks for your comments. - Steve

burt said:

It is overdue to have a salary cap in MLB. The rich/big market teams will only get richer and buy up the best players.

One thing that might stop this madness is a yearly repeat of what happened last season with the Tampa Bay Rays.

The other possiblity is the economic situation may eventually slow down these big market/big spender teams, (see NY Yankees).
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Baseball, as Scott Boras likes to say, has thirty different economies. The Yankees aren't really bothered by any economic problems, are they? Not now and probably not ever. Thanks for the comments. - Steve

Jason said:

Guess what, O's fans? The O's used to be considered big spenders, a desired destination for top free agents, and a winning franchise almost every year. Get your own house in order and get your franchise back in baseball shape and start making good baseball decisions before you all start screaming for salary caps and to be realigned into the NL Central or something else ridiculous. The Yankees have their own model - spend every year and take huge financial risks, and pay the luxury tax and revenue share - guess what - they win, too. And for all of you ready to kick Andy MacPhail out of town, he's the only one who has made any sense around here for the last ten years!
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The O's didn't ask about a salary cap, Jason, I did. Also, no one is tallking about leaving the AL East. No one is running from that challenge, daunting as it is.

Steve

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