A Short Post on Salary Caps and Baseball
Lately there's been a lot of talk about salary caps and baseball. Driven largely due to the Yankees free agent spending spree in which they added CC Sabathia, A.J. Burnett, and Mark Teixeira for some large sum that most of us will never come close to earning. Most of you whom have talked to me about the topic before know I'm largely against implementing a salary cap.
No matter whether there's a floor, a cap, or simply a free market, teams like the Yankees will always earn more revenue per victory than teams like the Rays and Marlins. Right now, the Yankees use their financial advantages to sign free agents to massive, albeit market value, contracts that smaller market teams have no hope of offering. That being said, free agent contracts are only a good deal when compared to other free agent contracts.
If a cap is implemented, the Yankees will still earn a ton of revenue, but will have an excess amount of cash laying around that used to be spent on their roster. Odds are, they're going to spend that money, and on what? Well, how about amateur talent, both domestically and internationally or technology and advancements in statistical analysis as well as scouting, coaching, and front office techniques?
What would you rather have: the Yankees of current, who spend money on free agents that are usually near the end of their prime anyways, or the Yankees of a salary capped world, who have a distinct advantage in minor league talent and baseball operations?
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Salary cap doesn't work in baseball
The best talent is usually cheap. So, yeah, you’re very much right on.
Mother---- him and John Wayne!
by MerryGoByeBye on
Dec 29, 2008 9:25 PM EST
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I don't want a cap
Which means a lot from a fan of a team in a division with the Yankees and Red Sox
Evan Longoria and David Price - the fight for my heart
by joeybw on
Dec 29, 2008 9:39 PM EST
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a few changes I'd like to see...
While I do think baseball needs some kind of modification as to the amounts spent (on both ends of the scale), I do have an idea or two I would like to see implemented.
I’m not sure the problem is the Yankees spending too much money; I think it’s more of a problem of other teams not spending what is necessary to field a winning team. And before y’all start pointing out the Rays as an example of small market efficiency, I don’t think having 10 years of crappy teams enabling you to draft a half dozen top prospects is really the way to build a team. I’m glad it’s working out now, but it’s not the optimal way of doing it.
Yes, the Yankees and other big market teams have a bunch of financial resources helping them. But even when they didn’t, when Steinbrenner took over, he was willing to put his own money up to field a winning team. Other owners have shown a willingness to dig deep if necessary. Others show a willingness to receive and not put back in.
However, there are inequities that need to be addressed.
1) Get rid of the luxury tax completely. It’s not working. The Yanks ignore it and the other teams, for the most part, avoid it.
2) Increase the amount of revenues going to the visiting teams for televised games. There are two teams on the field. If the game is televised, they both need to be there. If the Yankees and the Rays are playing on the Yankee network, the Rays should be paid a higher percentage of the money made then they currently do. The Yankees have a huge TV contract generating a huge amount of revenue, while the Rays receive a much more modest amount. I’m waiting for an owner with enough balls to simply say “increase our percentage or we don’t take the field”.
3) MLB needs to earmark a high percentage of these type of funds to be put onto the product on the field. If you aren’t going to spend it to put a good product on those television networks, you should forfeit your right to receive it. I understand some teams may take a year or two to retool, and that’s fine. Some type of formula can be written having to do with wins and payroll to make sure teams are following the rules. If a good faith effort is being made, I’d hate to see teams penalized. But teams like the Pirates and the Rays (under the old regime) weren’t (and aren’t).
4) More freedom of movement for the MLB clubs needs to be allowed. If a team can do better for itself than where they are, they need to be allowed to move. This, however, needs to be monitored in such a way that cities that support their teams aren’t left out in the cold. Let’s say if a team stays at 75% capacity over a 3 year span, the franchise cannot move.
5) And lastly, teams that are traditionally non-competitive need to have their franchises pulled and new ownership found. Mark Cuban wants to buy the Cubs. Ask him if he’d be interested in his hometown Pirates. Offer him some incentives.
The truth will set you free, but first it will piss you off.
by pocket8pin on
Dec 29, 2008 9:46 PM EST
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The Pirates are going to be the next Rays.
I’m still reading the rest of your comment in more depth.
by R.J. Anderson on
Dec 29, 2008 10:01 PM EST
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The salary cap idea is a touchy subject
The biggest problem with the idea of a salary cap in baseball is the economic difference between large and small market teams.
For all large market teams, they’re at a (in this case) distinct advantage of having a localized economy that makes the dollar weaker then it does in other areas. The reason these teams have more money to spend is because the economy is weaker in places like NY, Boston, LA, etc, so more money flows through those local economies. The reason why a Janitor in NY makes nearly 6 figures is because slums cost $1500 a month, milk costs $6/gallon, people have to pay for the parking spaces in their living areas and every road has a toll. They’d be living on the streets if they made ‘normal’ wages. In comparison to a place like Tampa, where the average household salary is around $37k, and $1500 a month towards living space is a mortgage payment + homeowners insurance, a dollar goes much further here because there’s less money funneling through this local economy
Now to a baseball player who is earning several million dollars a year, the fact is they earn enough money that they can afford to NOT live locally, so the financial penalty incurred by surviving in the local economy doesn’t apply to them. It’s an equalizer that unfortunately puts large-markets like New York and small markets like Tampa on even ground. And when a baseball player doesn’t have to take into consideration local living expenses, it gives large market teams a distinct advantage.
The problem with a salary cap in baseball is that the teams all have local TV contracts and are allowed to negotiate their own rates with their own providers. The Yankees specifically have an even greater advantage by owning their own network, YES; and have negotiated an outstanding deal with local cable providers. An abundant, weak dollar + exclusive networking + exhuberent TV contract = megabucks for the Yankees.
Everybody keeps saying that with NY’s new stadium that they’re once again in another class by themselves. Yes, a new stadium is going to generate more revenue then an old one, but in reality, the economic climate of New York, and specifically the Yankees, the TV contract is still what’s driving revenue. The Yankees could easily afford a payroll in the $300 million range even before their new stadium, but the fact is, there just aren’t enough players for them to spend their money on.
If you allow teams to continue to negotiate their own regular season contracts and then implement a salary cap, you’re basically penalizing teams like the Yankees for having a weak dollar in their local economy; and since MLB simply doesn’t have the clout of rarity like the NFL does that allows them to schedule the majority of their games during a certain time, there’s no way to negotiate exclusive, lucrative national contracts. As is, a revenue-sharing system like the NFL has is simply impossible for MLB.
I still think a luxury tax can work, but a much more complex system revolving around floating averages that can go both up and down from year-to-year needs to be designed and implemented that not only taxes those who have the greatest advantages (like the NY teams, Boston, LA, etc.) but also implements a salary floor and forces the bottom-tier teams to spend the revenue recieved from the luxury taxes on team salaries. The Yankees can’t be the only team getting taxed year after year, not when other teams are spending $155-160M on payroll and are avoiding those taxes. The idea of a luxury tax is to make small market teams more competitive, not make small market teams more financially bouyant and that’s not happening right now.
by kericr on
Dec 30, 2008 12:04 AM EST
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Just another note
I’m with you that Something needs to be done. Ultimately, the Yankees and the Rays are much closer simply because the Yankees front office is amongst the worst organizations in talent evaluation. God forbid if they get some heads in that FO that know how to think. Endless revenues + astute talent analysis would make that team completely unbeatable.
by kericr on
Dec 30, 2008 12:07 AM EST
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I don't think the talent evaluation issue is that simple
Part of what drives the difference there is draft position, though that’s not nearly the difference some off the cuff commentators make it out to be when spoeaking of the Rays.
Another issue is system talent outflow when a team is contending for the playoffs year after year – those teams often trade prospects for pieces in the current puzzle. An issue we’ll see how the Rays FO handles assuming they remain in contention over the next few seasons.
And I don’t agree that NY is so bad at talent evaluation, at least not at present. This was perhaps more true prior to a few years ago, when the org just didn’t priroitize development enough. Drafting in a consistently low slot doesn’t help, but NY has resorted to overslot picks heavily in the last 3 drafts. And has done a far superior job than Tampa for example in the international market, though that has become an area of greater focus for the Rays.
While it’s not the best indication of a system’s productivity, NY has posted the best win pct. across the minors system 2 years in a row. What that speaks to is how I would characterize their system’s state – shorter on high upside guys at upper levels, but plenty of pieces that have a chance to contribute, particularly at lower levels. And lots of pitching poerforming well, even if not viewed as top tier. Remember, after ‘07 BA called the Yanks minors pitching the best overall. Hughes, Kennedy, and Chamberlain moving past prospect status lopped off the top end – most orgs would be slotting in the former 2, or at least 1 of them, into their rotation plans for the coming season. NY tried that last year, to ill effect, so lost their confiodence in relying so heavily on prospect pitching, but they’re all still around and still have plenty of potential.They’re not well distributed on the position side – so they couldn’t fill the key holes this offseason and probably not next when OF becomes an issue.
But the fact is the Rays org isn’t prospect deep either – just has more high level guys. That’s admittedly more important – can’t succeed playing a bunch of 3 starters and utility guys. So that’s why your org is still regarded better than NY’s.
But what about the future? 5 of the top 6 NY BA top 10 (if that’s any good indication) and #10 played in Low A ball or likely would have (Brackman was rehabbing from TJ). Rays had 3 from below A+. Beckham is likely the best prospect either has at low levels (Montero?), but overallI wonder.
by nyyfaninlaaland on
Dec 30, 2008 6:31 PM EST
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I don'r want a cap
just look at the NBA and the “parity” -ha ha
by Raymondo on
Dec 29, 2008 9:56 PM EST
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The NBA is funner to watch than the NFL in my opinion.
But then again, Dwight Howard is a God, so.
by R.J. Anderson on
Dec 29, 2008 10:01 PM EST
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NHL > NBA > NFL
You know this.
by R.J. Anderson on
Dec 29, 2008 10:09 PM EST
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NO
MLB>NFL>NBA>NHL
NBA and NHL i only really watch when football season is over
everything Rays,Marlins,Twins and Reds
who needs k-rod for 37 million when you can have d-rod for 50k?
twins sign ty wigginton ASAP!!!!
by RaysOfHope on
Dec 29, 2008 10:20 PM EST
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i cant watch the NBA right now with my hopeless Timberwolves
everything Rays,Marlins,Twins and Reds
who needs k-rod for 37 million when you can have d-rod for 50k?
twins sign ty wigginton ASAP!!!!
by RaysOfHope on
Dec 29, 2008 10:18 PM EST
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So Sabathia and Tex both at 28 are "past their prime"
Interesting
by Raymondo on
Dec 29, 2008 9:57 PM EST
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In the abstract they are
Generally speaking a player’s prime is around their age 27 season, so they would be past that. You are paying for prime production well past prime years. Granted their “past prime” years are better most players primes.
prime prime prime prime
by rglass44 on
Dec 29, 2008 10:02 PM EST
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Pitching prime is more ambiguous in age than hitting prime.
While it appears Sabathia is in his prime, there’s also an attrition factor that we don’t necessarily get with hitters. The Yankees didn’t overpay for Teixeira based on his performance now, but giving him that many years is a bit foolish. Then again, they’re the Yankees, they can eat the sunk costs if needed.
by R.J. Anderson on
Dec 29, 2008 10:06 PM EST
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Pitching prime is more ambiguous in age than hitting prime.
This ties into the whole TINSTAAPP, but if I remember correctly it still lumps around 27-28 before the attrition starts to become greater and greater.
by rglass44 on
Dec 29, 2008 10:10 PM EST
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while there eating those sunk costs, we will continue to ball on a budget
everything Rays,Marlins,Twins and Reds
who needs k-rod for 37 million when you can have d-rod for 50k?
twins sign ty wigginton ASAP!!!!
by RaysOfHope on
Dec 29, 2008 10:21 PM EST
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I would say they are in the middle of their prime years.
There might be data on this that I’m not aware of but I would guess 27-33, maybe 34 would be the “normal” prime year age for a MLB player.
Rays 2009 Slogan: "Come back with your shield or on it"
by PriceMultiCyYoungs on
Dec 30, 2008 8:20 AM EST
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Clearly outstanding players
have a different calendar for “primeness”. They can play at a high level, even higher than the “primes” of lesser players, at more advanced ages.
I’m not big on the whole “prime” concept. What’s one top players average is often beyond the dreams of the average player.
by nyyfaninlaaland on
Dec 30, 2008 6:56 PM EST
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These teams are slowly forcing the cap or some sort of restriction on themselves
I agree that they will spend the money elsewhere, except some already have. Case and point the Boston Red Sox. Look at what their player development is doing. It’s only a matter of time before the Yankees snub their nose at the system and pay well above ‘top dollar’ for their draft picks and players that have ‘signability’ issues will not play for anyone but the Yankees. If a non-salary cap system is to work, then there needs to be a rookie cap to prevent the teams with larger revenues from exploiting the one system that is meant to be equal and specifically geared for teams at the bottom to get better.
Something needs to change if no salary cap. I do agree with one very excellent point so far: the visiting team should take in more revenue from the opposing tv deal—and to treat it fairly—it should be on a percentage scale, not a dollar scale.
If these two points would be accomplished, then no one even needs to mention salary cap and the players would have a hard time rejecting that sort of deal, especially in this economy.
Sorry to make this longer, but one final point: We will soon reach the point when the public will vilify the sporting arena for its greed. The escalating prices with owners nickle and diming the public in new areas are getting to the point where only the rich can afford a seat. It is no longer a family game and hasn’t been for some time. But New York will see the first crash. Seat licenses, forcing the public to pay for stadiums, it is only a matter of time. Just because a business can make more money, doesn’t necessariy mean that’s ‘good business’. At this point, I could see the sports business take a very ugly turn in the next 50 years.
by raysfaninminnesota on
Dec 30, 2008 12:36 AM EST
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I do not want parity, but I do want a level playing field
Frankly I dislike the NFL because of the high turnover. I like it when organizations are able to shine for long periods of time. I really hate it that some sports have structural aspects that do not allow better run organizations to beat out poor organizations on a yearly basis.
That being said I want a system where a better run organization can turn a better result year in and year out than a organization that is poorly run. That is not the case in baseball for all intents and purposes.
Also there is no way baseball can mimic the structures of any of the other sports. Baseball is unique in the way talent is developed, free agency, drafting etc. There is no way anyone can expect a system from another sport to work well for baseball just because it worked for that sport. Baseball needs something revolutionary that will give the league parity while rewarding the franchises with the best front offices.
by matthan on
Dec 30, 2008 12:48 AM EST
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Chanpionships should be determined on the field
not in front offices. And how good a front office is is quite hard to measure as well. I know you’re all proud of yours, justifiably, but your base criteria is one of accounting / fantasy baseball terms.
But the point is well taken that baseball is very different. The post above seemed to actually espouse expanded revenue sharing. Despite being a NYY fan, I’m not completely opposed to that. The big differences in economics betwen the NFL and MLB – the 2 revenue giants – is that football’s revenue is heavily skewed towards national TV contracts due to the sports limited schedule, and perhaps that football is a better TV spectacle. That revenue is equally shared in both sports, it’s just a much smaller part of the pie in baseball. Plus football has about twice the players and 1/10 the games.
I’m also in favor of lowering the lux tax thresholds so that more teams are in danger of exceeding it and high payrolls are further constrained. This is probably the best way to rein in runaway high end contracts. A salary cap would likely penalize mid-level players as much or more as teams rushed cheap prospects paid at the minimum to the majors instead of paying lesser vets the $750K to $2.5MM deals. I also think a “poor tax” is also in order for revenue sharing recipients, reducing receipts in some proportion to payroll so their owners can’t just take that money and stash it (Jeff Loria!), and distribute it back up the chain to teams in the middle.
Look at the FA deals done so far – only a few players are seeing significant raises year to year, and many have taken huge tumbles. It’s arbitration where the big gains are made, and consistently. Actually, I think a number of players should have accepted in this tumultuous market, then gone back on a hopefully better one next year. And more and more clubs will look to lock up arb year players, like the Rays have done effectively. I don’t generally think this is the best strategy for most players, but it’s hard to spit in the eye of security coming in a multi-year, $15MM wrapper.
by nyyfaninlaaland on
Dec 30, 2008 7:25 PM EST
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Why are people focusing on expenditures
instead of on what is happening on the field? Year after year we hear about how baseball is in trouble because of the financial disparity, and year after year baseball thrives because there is great competitiveness.
Who cares how much a team spends? The only thing that matters is whether all teams have a decent chance to compete, and as the payroll disparities have widened, the capacity to contend has broadened also. I am not simply talking about the Rays. Up and down the majors, there is more competitive balance now than there has ever been.
The contest is not over who has the most expensive players but over who plays the best baseball over 162 games, and so far the correlation between the two factors is very weak. At the extremes, I recognize the correlation is stronger (although it is tough to separate other factors that make for success or failure and isolate a direct effect), but even there it is imperfect.
The outrage over the Yankees’ spending is pseudo-populism and makes for screaming headlines, hyperbolic analyses and all sorts of emotional angst, but in terms of actual effect on the field it is entirely over dramatized.
by bobr on
Dec 30, 2008 6:30 AM EST
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Well to be fair
I can understand it though. And there is an effect on the field – NY did reach the playoffs 13 straight years before this one. And Pittsburgh hasn’t in that time had a winning season. Of course these are the extremes to which you refer.
But you are correct. While the lesser number of playoff teams has something to do with it, MLB’s playoff team turnover has been fairly good. In ’07 NYY was the only repeating playoff team. And only 3 teams have made it each of the last 2 years.
by nyyfaninlaaland on
Dec 30, 2008 7:32 PM EST
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Yes, they are the extremes and
the Pittsburgh case may be as much a result of poor front office work as it is of payroll considerations. After all, they were signing an awful lot of mediocre and worse players to silly contracts and were not developing any systematic approach for their prospects. I am guessing they will improve over the next few years.
by bobr on
Dec 30, 2008 10:52 PM EST
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Put on a derby
A salary cap is needed! Why do the Yankees draw the most in attendance? They have the most marketable stars. Stars put asses in seats. People show up to watch Arod/Jeter/Texiera etc. They don’t show up to watch the generic run of the mill players. Bonds would have sold out the Trop last season. Stars also are better players for the most part. The Yankees are in the hunt because they buy up the talent. It should irk poeple that it happens and it does. Every other team has to work to draft and develop talent both on the Minor League and MAjor League level. For what? When their contracts expire and they’re the best in baseball they go play in NY, either for the Mets or Yanks.
Hows it going to feel in 6 seasons when Longo’s in pinstripes? How ‘bout Upton Upton with his NY derby in 3 seasons? Kazmir is 4? Price in 6? The Rays can’t afford these guys without a salary cap.
MLB is a good o’l boy magnate that caters to the wealthy. Not just the Yanks but the Networks and major advertisers realize that’s where their monies are at.
The bottom line is if there is to be true parity in MLB it has to have a cap.
If you don’t think so you’re just plain o’l stupid!
Happy New Year!
by John 63 on
Dec 30, 2008 8:24 AM EST
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"Hows it going to feel in 6 seasons when Longo’s in pinstripes?"
Unless the Rays are changing their unis, you’re delusional.
by R.J. Anderson on
Dec 30, 2008 9:33 AM EST
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Why numnutz?
Longoria is signed thru 2013 with options til 2016. Do you honestly believe Evan will stay that long with his contract backloaded the way it is? Just like C.C., if the Rays aren’t competing with 2 years to go on his contract he’s history. That’s what’s wrong with no salary cap peanut.
Let’s put this into perspective so even you can understand this RJ. The NBA has a salary cap. LeBron James contract expires next season. It is said the Knicks will be all over him. The Cavs however can match the offer and keep the main attraction in the NBA. What does this enable the City of Cleveland and all it’s businesses around to prosper. Without James in Cleveland the fanbase will be gone, winning will be history, local businesses go out of business.
That’s why it’s f’d up! The Yanks & Mets hoard the star attractions that would make the smaller cities prosper and win. Will it change? The answer is NO! It’s all about the money and Selig and MLB could give two shits about the smaller cities competing. As of now there’s a handful of teams that may make the playoffs once every 20 years or so. Is that fair?
When the door starts opening and C.C., Kaz, Price, Evan start walking for the BIG money I’ll just bet your tune changes.
by John 63 on
Dec 30, 2008 12:38 PM EST
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Not only are you clueless on baseball, apparently you don't even know basketball.
The free agents previous team can offer an extra year in the NBA, no other team can match that, meaning Cleveland CAN offer the most money.
by R.J. Anderson on
Dec 30, 2008 12:42 PM EST
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100% correct!
While all the yes men here agree with RJ and his stupid analysis, I have to admit, you add to the abstract of not agreeing with the pencil knecked geek.
A salary cap is needed, there is no doubt. Barring none, all the names mentioned above will be in New York.
Thanks for speaking your mind with all the yes men running interference for RJ. It adds to great posts for the reading.
P.S. They’re just plain o’l stupid!
by J.R. Dunderbach on
Dec 30, 2008 7:12 PM EST
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"If you don't think so, you're just plain o'l stupid!"
You think so?
Tell us how you would implement the cap genius, if you’re so smart. Since you know so much about the financial situation in baseball, surely your in-depth knowledge towers over us all and you can explain to us simpletons just how easy a salary cap is to implement that is both fair to teams and allows a proportionate amount of revenue to expense spending.
Just keep in mind, the Yankees gross revenue is close to 700M a year, a hair over 300M in revenues from the team, and about $340M in revenues from the YES network. The Rays, for comparison purposes, have about $140M in gross revenues COMBINED.
by kericr on
Dec 30, 2008 9:43 AM EST
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First of all
you really need to check your facts before posting. Longoria is not going to the Yankees in 6 years and the Yankees do not draw simply because they have stars. In fact, you may have the relationship reversed; many are stars because they are in NY. In any case, while there is a limited supply of major league talent, it is not so limited as people seem to think. Consider:
Best catcher in baseball is in Minnesota. Second best is in Atlanta.
Best first baseman is in St. Louis. (Actually, best player in the majors.) Pretty good ones in San Diego and Minnesota as well.
Best second baseman is in Philadelphia.
Best third baseman is in NY. Pretty good one in TB also.
Best shortstop is in Florida.
Best left fielders may be in Milwaukee and Chicago
Best center fielder is in Cleveland. Pretty good ones in TB, Texas and Detroit also
Best right fielder may be in Baltimore or perhaps Detroit or Seattle.
Best DH may be in Oakland.
One could go on and on. Nobody is monopolizing the talent. And if anything, what free agency does is allow the smaller market teams to keep the biggest talents through its peak years and then replenish with younger talent while the big markets overpay for talent about to enter its downside.
So I do not think as you do, and I am not plain o’l stupid.
by bobr on
Dec 30, 2008 12:51 PM EST
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A slight difference of opinion...
I like your post, but disagree with a few things.
First, we have no idea where Longoria may end up at the end of his contract. But we do know that the big-market teams will have a better chance of bidding for his services than the small market teams. That is the inequity I’d like to see changed.
Also, picking the top player at each position is, almost literally, cherry-picking. If you were to make a list of the top 5 players at each position, I believe you would see a definate lean towards the more-monied teams.
I’ll still stand my wish to see the TV revenues divvied up more equitably between the home team and the road team. Why should the Yankees make the huge end of the pie when both teams are on the field? I don’t know what the ’s are, but I think a 65/35 split between home/road teams is fair.
BTW, revenues coming from marketing should go 100% to the team being marketed, minus whatever MLB is currently taking. That allowed successfully marketed teams like the Yankees and the Red Sox to continue to make the most money, and spend it if they choose. I just think asking a team with 30% of the income of another team to compete on an equal footing is unreasonable.
The truth will set you free, but first it will piss you off.
by pocket8pin on
Dec 30, 2008 9:00 PM EST
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It is cherry picking,
but that is in response to the statement that the richer teams have the marketable stars. My point is that the stars are scattered all across the majors, and while I intentionally chose only the most obvious examples, anyone could add to the list to demonstrate that there are plenty of marketable stars all over the place.
I think it is also true that the definition of stars is somewhat skewed. Any player in NY or Boston, and a few other places, is going to get more attention whether he is a better player or not. Put Halladay in NY and Sabathia in Toronto and chances are Halladay would seem the superstar pitcher. Put Oswalt in NY and we would likely be calculating his HOF chances on a daily basis by now.
As for Longoria, it is possible the Rays will not exercise the expensive options they have. But the point is the choice is in their hands, and to date there is not a whit of evidence they will not keep him for the full length of his contract. We know that they committed to Pena for 3 years and that they did pick up the option on Crawford, so the only counter-example I can think of is Baldelli, and that seems a special case. The evidence, to the extent it exists, is that Longoria will not be a free agent after 6 years, but any definitive statement on that matter can only be wild speculation at this point.
I have no objections to leveling the distribution of TV revenues or other techniques for MLB as a whole sharing system wide profits. But I see no advantage to caps and no reason to be obsessed with the issue. It is purely a case of being gulled by the anti-union public relations of the owners.
by bobr on
Dec 30, 2008 11:04 PM EST
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A cap would come with further-enhanced revenue sharing, just like in the NFL
I mean, how else would teams like the Rays be expected (at least initially) to spend $150M on a roster?
Lay off the stadium, Iwamura
by Orlando Rays on
Dec 30, 2008 8:47 AM EST
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Its a problem
When one team forces the salary structure for similar players up to a level where only 3-5% of the clubs may be willing to pay at that level. Call it “pay to play”. This is where the revenue streams come into play. Now, while a cap I believe may not be practical, a more practical examination of a floor is what I am interested in. Why should anyone get mad at the Yankees for doing what the system that was collectively bargained for allows them to do? My problem is that they set the established bar and have forced salaries up in the arbitration process, which means you have to do what teams like Colorado did with Tulowitzki and the Rays did with Longoria and Shields and buy out arbitration and free agency when you can be pollaxed by the system.
I am for a reexamination of the amateur draft slotting and compensation. Teams that are willing to pay will have the advantage. Being smart is all good, but eventually the system has been chipped away at.
Joe
by joedobr on
Dec 30, 2008 9:42 AM EST
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The solution Bill James proposed that seems like a pretty good one.
He essentially proposes that they get rid of the gate receipts shared revenue and replace it with cable network shared revenue. This is where the money is, especially since luxury boxes aren’t included under the umbrella of gate receipts.
by rglass44 on
Dec 30, 2008 9:47 AM EST
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The problem is that your sharing revenue
of separately incorporated businesses. The cable networks aren’t necessarily part of the team corporate structure, and if this approach was taken we’d have lawsuits out the yingyang.
by nyyfaninlaaland on
Dec 30, 2008 7:42 PM EST
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I wanted to link to this piece, but couldn't find it until this morning.
by R.J. Anderson on
Dec 30, 2008 10:28 AM EST
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Here's one reason why this doesn't work.
Stadium sizes. The average stadium size is 44,234. If you want to put everyone on even revenue sharing ground, then everyone has to have a stadium that is proportionate to the population of their cities. Using the 4M people per team philsophy incorperated in this article, and assuming we split the population in 2 for the Yankees and the Mets, they’d need 100,000 seat stadiums to be on even footing; and we already know that won’t work.
by kericr on
Dec 30, 2008 11:44 AM EST
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Not necessarily
With the increased demand for tickets and equal supply, the money made per ticket is much, much higher. Throw in the fact that a HUGE portion of team revenue is made outside of true “ticket sales,” and I think it isn’t an issue.
by rglass44 on
Dec 30, 2008 11:47 AM EST
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I reiterate
the winners are not the teams with the highest payrolls. They are the teams that win the most games. And in the last 20 years, more different teams have gotten to the post-season than at any comparable time in baseball history. And fewer teams have been regularly consigned to the cellar during the past 20 years (and those that have are usually those with ineffective front offices, not necessarily those with low payrolls) than at any comparable period.
So the Yankees have now won the off-season. They have garnered the most publicity, created the most buzz and enraged the most people. Bully for them. They have yet to win a game in 2009, and while I think they are greatly improved and will contend, all the off-season hype in the world is irrelevant to whether they actually perform on the field. I cannot accept the legitimacy of wailing about their spending or demanding structural changes to make it more difficult for them to spend. It would probably please the owners, but I can see no positive effect on anyone else unless it is the psychological satisfaction in knowing that NY cannot exert its financial muscle to its fullest extent. That seems a churlish attitude.
by bobr on
Dec 30, 2008 12:59 PM EST
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