Salary Cap: A Case Study

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Imagine being apart of a professional baseball team; although you are apart of a big league ball club, unfortunately you are located in small market city. Due to being located in a city with a low population, television providers such as Fox or NBC will not offer to pay your club the same amount as they pay a major market team. The idea is simple, smaller population equals less money. This is a fair and understanding point if it simply relates to the profit for the owners and shareholders of teams. The corrupt part is that due to Major League Baseball not enforcing a salary cap these television contracts directly play a role in a team’s budget for players. So now your small market team that is not able to gain mass amounts of revenue from television …show more content…
In order to do so MLB executives would need to propose a deal at the Collective Bargaining Agreements. The CBA’s are a yearly offseason meeting in which Major League Baseball meets with the Major League Baseball Player’s Union. The MLBPA would not be in favor of the proposed salary cap and the league would now be at a stand still with the possibility of a lockout. The MLBPA is not in favor of a salary cap due to the fact that the point of their existence is to protect the players, since a cap would limit the amount of money a player would make they would strongly resist. In the MLB’s proposed deal to the MLBPA they need to make a strong case for how effective it has been in the other professional sports across America. Three of the four major professional sports in the United States have an enforced salary cap, making Major League Baseball the odd ball out. The National Football League is by far the most popular sport in the country. Their salary cap offers a unique chance to every team in the league, they always have a shot for a championship next season. In baseball you often hear, give this team time to develop and in five to six years they will good. This is due to these smaller, not so good teams having to grow their players through farm systems, while large market teams do not have to wait for development rather go out and buy talent. “It's 2015. The NBA got a salary cap in 1984, and it has …show more content…
Show the league that the non-existent salary cap does not work. The luxury tax does not work and it never has. The tax allows for large market teams to spend over the set limit with only small consequences. Small market teams are now left out dry because they do not create enough revenue to get close to the tax, let alone exceed it. Baseball simply needs to wake up and realize that the system in broken. Almost all of the World Series Champions in recent history have been in the top ten in regards to payroll. The recurrence of champions is not a stat you see from other professional sports due to the fair and equal playing field. Finally, fans of the game are hurt, they are tired of seeing the same champions and tired of being disregarded by league execs. Go out and show the MLB that the problem will continue to get worse and baseball will continue to see a decline in attendance if something is not

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