Increasing Wages: The Exponential Growth in MLB Salaries
Today the highest-paid
baseball player in the MLB is New York Mets pitcher Max Scherzer. He snagged a
3-year contract for $130 million, $43.33 million a year. In 2021, the Los Angeles
Dodgers earned the title of highest MLB payroll with just below $270 million.
The New York Yankees trailed them at just above $200 million. These numbers are
baffling to the average human, especially when trying to comprehend how MLB
franchises can afford it, but there are key factors in the business of baseball that make these large salaries possible.
The Player’s Union
The Major
League Baseball Players Association represents all players from all 40 teams.
In addition to players, they also protect managers, coaches, trainers, etc. But
protection comes with a cost, like a subscription fee. The association bargains
for each member and group to ensure fair licensing for the use of their names,
numbers, nicknames, signatures, etc. They increase salaries, protect individual
rights, and provide impartial third-party independents for issues on contract
agreements and rights, also called arbitration. The association also allocates the
ability to strike until demands are met, giving everyone the right to fight for
their earnings. As demonstrated during the 2022 owner’s lockout, the union
gives members the right to protect their revenue.
Revenue Sharing
A recent
dispute, revenue sharing, is when all teams combine a percentage of their
yearly local revenues – currently 48%. They compile and share evenly among the
teams. These earnings include media contracts, game-day revenue, etc. The goal
is to ensure equality, which contributes largely to smaller-level MLB teams
being able to afford larger contracts with players, regardless of their yearly
revenue. It keeps lucrative teams such as the Los Angeles Dodgers from offering
higher contracts and ultimately creating a franchise that dominates the league.
Recently, owners and players have been discussing collective bargaining as an
alternative because they feel they are losing profits with revenue sharing. Additionally,
because of revenue sharing players are often worth less than their salary suggests,
regardless of salary caps.
No Salary Cap
Currently, there is no salary cap in the MLB because it would easily result in more money for the owners and less money for the players. The organization protects members from being lowballed or cut off from payouts by team owners. A salary cap would set a limit for all organizations to spend each year on the player's salaries. However, the MLB is the only major professional sport in America to no use a salary cap, and it is noticeable. Owners push for salary caps because it means more money for them, and they can avoid overextending player payouts. Players are against a salary cap because it means the sky is the limit for their salaries.
Overall, the MLB is a capitalistic entity focused on
profits. The best team, with the largest fanbase, and the most games will make
you money. The lack of a salary cap is the leading cause of the increasingly massive
contracts the MLB associations are offering to players today. Can the MLB exist
with a salary cap? Will they implement a salary cap in the near future?
I think that the MLB not having a salary cap is a great thing for the sport as well as the players. Like mentioned in the article, it means that the sky is the limit for their salary and increases motivation to perform at the highest level possible. Of coarse the owners are pushing to add a salary cap because it means more money in their pockets but it this ever happens, I do not think it will go over well with the players. Also, with a salary cap, once a player signs a max contract they feel like they have reached their full potential and there is nothing more they can do. With players like Mike Trout and Aaron Judge performing at such high levels year after year, it is awesome to see how big of a contract they can get next and great for the fans to see their favorite players signing massive contracts.
ReplyDelete-Jared Anderson
I agree, I think that the reason teams like the Dodgers and Yankees have such big salaries is because they are winning teams. With winning comes a lot more money because more and more people want to watch. If MLB couldn't afford these big contracts then they just wouldn't make them that big and these players would have to sign for less. At the end of the day if the business of baseball can bring in these numbers then players deserved to be paid them.
Delete- Maxwell Clark
I believe that the MLB not having a salary cap is great for the players, but terrible for the sport. Players now a days are played plenty, now don't get me wrong I love the MLB and my goal as a kid was to make it there, but not having a salary cap is hurting the game. Although I am a RedSox fan and it has benefited teams such as the RedSox, Yankees and Dodgers, but it destroys the competition. For instance the Pirates and Athletics have very low budgets and are last or close to last every season while teams such as the RedSox and Yankees are top of the pack year in and year out. Although there are anomalies such as the Orioles and Rays, but unlike the NHL there are usually the same teams year in and year out all or the majority of which have the higher salary caps in the game. Meanwhile for the players they can get paid as much as they want which is great for them of course.
DeleteI agree with Jared and Max that implementing a salary cap would limit players motivation. I do also agree with Toby that the lack of a salary cap puts teams such as the Pirates, Athletics, Rockies, etc. in an awkward position with lower funding. Teams in smaller cities, with less success are easily pigeon holed. I think creating a salary cap for all athletes making their MLB debut could slow the growth of increasing salaries in the MLB. Maybe there is also an opportunity to limit how much a player's salary can be increased per year, to continually incentivize athletes but also limit the growth of salaries.
DeleteMarissa Weiss
As a New York Mets fan, I do think a salary cap should be implemented. The Mets owner Steve Cohen has an unruly amount of money that he will give to the ball club and even though this means more success for my favorite team, it decreases the competitive nature of the sport. I feel bad for the smaller market teams who don't have the money to compete every year and with no salary cap, the bigger market teams can pick up almost as many stars as they want. I do hope the MLB changes this ruling, although I'm not sure if they will anytime soon.
Delete-Hunter
The no salary cap in the MLB is why there is barely any parody. Teams like the Yankees, Astros, and Dodgers have pretty much unlimited funds compared to smaller teams and they can sign whoever whenever and for however much. This creates power houses that are super hard to make fall and it create a big hole that small market teams have to crawl out of to try and win. The big guys can go sign whoever and make a good team like that, but the smaller teams would have to get lucky in the draft and with their prospects to do well
ReplyDeleteI agree with Andre in that having unlimited funds to buy up all the players creates power houses in the MLB. I personally don't think this is good for the sport because when only a few number of teams are able to get all of the best players, games aren't as fun to watch. When games aren't fun to watch, viewership decreases and fan bases diminish. I think that having a salary cap would allow for greater competition and more intense games that will keep fans coming back for more.
DeleteAfter looking at the NHL and their system for salary capping and comparing it to the MLB, I don't believe the same model would work as well for the MLB. Baseball being americas pastime and routed in traditions that feel as old as time changing anything about the sport seems like it wont go over as well. Big name players that preform at a top class level every season are worth the money they are being paid because they have the talent and bring the fans to justify it. Sure this creates powerhouses in the league such as the yankees that seem to have a never ending flow of money and can buy any player they want on the market. However, I feel that any changes made to the structure of the league would have such a drastic effect of on the league as a whole and would piss a lot of loyal fans off.
ReplyDelete