Friday, February 6, 2009

The Salary Cap In Baseball

It’s about time for a salary cap implemented in baseball. It is used in all three other major sports: football, basketball, and hockey. So it only seems right that baseball should follow suit and enforce its own cap. It would help balance the playing field and it would dismantle dynasties. The problem is… the salary cap would probably accomplish the reverse affect.

I recently read an article written by Shawn Hoffman that deals with baseball and whether it should enforce a salary cap or not (the article can be found here). He made some great points about why the system would not work. I will sum it up with a few key points.

First of all, with a salary cap, there needs to be a salary floor. A salary floor would be put in place with all 30 teams’ salaries. Hoffman explains that the numbers show a $77 million price floor and $103 million cap. So, nine teams would have been over the $103 million cap resulting in penalties. But, 14 teams would be under the $77 million price floor. This would result in those teams signing veterans just to eat up salary to reach the floor. And for some teams that makes no sense. In fact it could hurt them if they are rebuilding.

The next point was an example using the Pittsburgh Pirates. The Pirates’ team president said he was in favor of a salary cap. Once again, that would mean there would have to be a floor. So let’s say the Pirates struggle in ’09 and lose $10 million from the ’08 revenues. On the flip side, the Yankees and Mets each make $50 million more in revenues with new stadiums and great seasons. That’s a surplus of $90 million (if the rest of the teams keep pace on their ’08 revenues) and so the price floor would increase making it even harder on the Pirates.

Hoffman’s last point was having an uncapped league, with limited local revenue sharing to support small-market teams, and a post-season system that rewards teams who get hot. The point he is making is that system is already in place.

So the salary cap may sound good in theory, but it would just bring on more problems for the smaller-market teams. So in reality, those teams should think about building up a team of young talent (see: Tampa Bay Rays) and hope for the best.

*My information and source can be found here.

1 comment:

  1. Baseball should never have a salary cap, it would be stupid. Baseball is perfect just the way it is (except that they allow artificial turf which is lame in baseball) and should never change. I personally love that the Yankees can buy who ever they want. when their great its a blast to watch them in the playoffs, when they suck it's kinda lame. Same for teams like the Red Sox and Dodgers. Even if you completely hate these teams and have no appreciation of respect for what they do for baseball who doesn't like watching the Rays come from years of rollin in their own shit to handing the Yankees their ass? The teams who are far behind either need to move and go to a city that will support them or bust some ass with scouting to acheive what the Rays did. Bottom line is, salary cap = lame, artificial turf is for babies, instant replay on homeruns is cool but should never move beyond that. Boom roasted!

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