CONTENTS
    Introduction
    The Problem
    The Solution Part A
    The Solution Part B
    Outlook

Introduction
Major League Baseball, the professional form of what for decades was called the National Pastime, has lost control of itself. The game itself is failing, the players are out of control, and, most importantly, the fans have lost interest. The blame for all of Major League Baseball’s problems stem from one place: the owners. For years, owners got away with a hands-off approach to running the game, but in today’s society of instant gratification and outrageous financial transactions, the owners have lost all control of their league. Not only did the owners do nothing through changing times, but when they did realize a change was needed, it was too late.  The power now lies in the hands of misguided players, arrogant umpires, broadcasting giants, and apathetic fans.

The Problem
The biggest problem with Major League Baseball today is competitive imbalance. When the contract of one player (Alex Rodriguez and his $250 million) is larger than the estimated worth of two entire Major League franchises (the Montreal Expos and Minnesota Twins, who have a combined value of $235 million), something needs to be examined. Consider, also, that the 2003 payroll of the New York Yankees is estimated to be more than eight times the payroll of the Milwaukee Brewers. The answer should have been simple. Every other major sports league has implemented some form of a salary cap, and it has worked gloriously.  A salary cap puts a uniform limit on the amount each team is allowed to spend on player salaries. The NFL, which has 63 players on a roster, has a salary cap of about $70 million. Major League Baseball, which has no cap and has only 25 players on a roster, has a disparity of $145 between its highest payroll and its lowest. The best example of a salary cap is the National Football League, where recent Super Bowl winners have all come from what are considered the "small revenue markets" of New England, Baltimore, and Tampa Bay. In the summer of 2002, the owners had a perfect chance to break the players and get control over their league, something that has been done in every other major sports league, but never in baseball. As always, when the players threatened to strike, the owners caved in. Little, if anything was rectified.

The once proud Montreal Expos are so strapped for cash, they
are playing 20 home games in Puerto Rico this season...

while the Yankees dominate baseball with a $160 million
payroll that now includes Japan's "Godzilla", Hideki Matsui.

The Solution Part A
The best solution to the problem of competitive imbalance is a two-part plan.  First, institute not only a salary cap, but also a salary floor. This not only puts a reasonable limit on the amount a team can spend, but it also sets a minimum for what each team is required to spend. A salary floor would help to close the enormous gap in payrolls, preventing the big market teams from buying championships, and also preventing the small market teams from tanking it every year with puny $16 million payrolls. The Players Association thinks that any kind of salary cap puts a limit on how much they can make. In reality, with a salary cap and a salary floor, the total amount of money being paid out to players would increase. As it is now, there is a large gap in the size of players’ salaries as well. A few big-contract players on each team are enjoying the free agent market, but the veterans and rookies are all sitting at the bottom of the scale with minimum contracts. A salary cap may limit the lucrative contracts, but, coupled with the salary floor, the middle and lower bracket, which includes many more players, will be guaranteed more money.

The Solution Part B
The second part of the plan involves some form of effective revenue sharing. Under the current plan, each team contributes a set amount of money to a pot, depending on how much total revenue they bring in. The more money a team makes, the more they contribute. This money is then divided up between the lower market clubs. There are two main problems with this system: not enough money is being shared, and the shared revenue is not being spent on the teams. For the most part, it is going straight into the owners' pockets. Since it takes two teams to play a baseball game, and since the large market clubs would make no money if it weren’t for the teams that come to their stadium to play, the total amount of money made for each game by the home team should be split 50/50. To make it more fair to the home team, who is doing most of the marketing work, it could be 60% for the home team, and 40% for the visiting team. Under this system, it would still reward the teams who market themselves well, and sell out their stadiums with loyal fans. What it would work to correct is situations like the Yankees, who make $250 million a year solely from TV contracts, and who do not have to share it with anyone. Instituting both of these revenue plans together would guarantee more money for the lower market teams, and that they will spend it on their teams. With the salary floor, mentioned above, each team will have a minimum salary to meet.

Outlook
This plan is not going to be easy to carry out, but if everyone pulls together in numbers, it will work. While it may seem to rob the top-end bracket, in the end everyone will benefit from it. Fans will watch the game again, because their team will once again be given a fair platform to compete. Once the fans come back, everyone will benefit, even those who may have lost money at first. With the total revenue rising each year, the total being earned and shared will rise each year. The owners will share more money, but make more money as well. The players will reap huge benefits. They will still have opportunities to sign incredible multi-million dollar deals, but with the salary floor and more money to spend, the lower and middle class will get a boost in salary. The NFL has a system similar to this. They have the most effective form of a hard salary cap, and they are reaping the benefits. Smaller market teams are not only competing, but winning championships. Star players are getting large contracts, and the players in general are paid well. Most importantly, football is replacing baseball as the national pastime. With an even market, every football team has a chance to win every year. Any team can beat its opponent on any given day. The games are exciting, and the fans eat it up. Given the chance, the fans will respond in the same way to baseball.

 

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