higgins's blog

In my last post, I discussed the issue of spending in MLB. Small Market teams arent able to spend the money to pay for superstars because of their low payrolls.  This leads to teams not being able to compete due to their lack of money. This article however showed me a slightly different perspective on the issue. Major League Baseball uses revenue sharing in order to help these low market teams remain competitive. Teams such as the Red Sox, Yankees, and Mets provide smaller teams like the Pirates and Royals with a nice bit of money. The problem that the league is currently facing is the fact that the Pirates and Royals are still managing to turn a profit whenever they arent contributing to the revenue sharing.

As a fan of the Pirates and a fan in general of the league, it is frustrating to know that the management of these two teams are more worried about making a profit than fielding a winning team. This is unfair not only to the fans and the city but also to the league in general. Other teams are willing to spend the money it takes to field a great team which in turn earns them a profit and then there are teams that are just taking their money and keeping it for profit. Many problems exist with the current payroll/revenue sharing that MLB uses. Hopefully this will be corrected in the future.

What would be a better way to handle this?

Should MLB try to imitate other successful leagues such as the NFL?

http://bleacherreport.com/articles/329632-mlb-has-a-revenue-problem-money-isnt-being-spent

From chapter 6-3: Does Baseball Need a Salary Cap?
by Neil deMause

“Perhaps no two words in baseball generate as much controversy and emotion as “salary cap.” Depending on whom you ask, a salary cap would either save the game, destroy the players’ union, provide hope for small-market fans, pervert the free market, or create a tangle of red tape that would turn every trade deadline into a battle of wits among dueling “capologists.”

For nearly all of the modern-era of baseball, the idea of a salary cap has been hotly debated. Small market teams are in favor, whereas large markets argue that it will ruin the game. The idea of a salary cap would have many effects on the game itself, but effects that I believe would be mostly positive. Teams such as the New York Yankees are able to spend approximately $212 million on player salaries, yet teams such as my Pittsburgh Pirates can spend right around $45 million. How it this fair? The Pirates have now suffered through nineteen straight losing seasons. As an 18-year old, who was born and raised in Pittsburgh, it is sad to say that I have never witnessed a winning season. Each year as teams like the Yankees and Red Sox fight for the rights to sign the best free agents, the Pirates are forced to settle for washed up veterans or untested young players. This formula has failed them year after year.  Now I understand that low budget teams have had some very successful seasons in the past, but it isnt sustainable. Within 3-4 years, the teams with the money are basically buying your team right from you. MLB is the only league that allows there to be such a lack of balance. The only question that I truly can ask is why. Why can this be permitted? Owners of these low-budget teams are forced to spend so much money out of pocket if they want to sign a superstar. So why dont they? Because if they do, they are looking at taking a huge loss. I dont know how many more losing seasons I can take. I think it is time for something to change.

http://sports.espn.go.com/espn/page2/story?page=betweenthenumbers/salarycap/060405

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