Friday, November 20, 2015

Why Baseball Will Never Have a Salary Cap

After learning that the MLB does not have a salary cap and understanding the significance of the absence of a salary cap in the MLB, I want to answer the question: Why is baseball the only sport without a salary cap and does baseball need a salary cap? This article argues that baseball doesn’t need a salary cap because they do not need to improve competitive balance, it makes for an exciting offseason, and it allows players to be paid the money they deserve.

SOURCE: Statcrunch.com

Baseball experts say that the only reason salary caps are implemented is to maintain competitive balance among the league.  Many would agree with this statement, but baseball experts also argue that the MLB doesn’t need to improve competitive balance because they already have it.  According to, “No, Baseball (still) doesn’t Need a Salary Cap” an article by Dayn Perry, “As you can see by these number, MLB by these measures has enjoyed more parity than the capped NBA and roughly equal parity to the capped NFL.”  The article shows the number of different championship teams, playoff teams, and non-playoff teams.  The numbers show the MLB has more parity than the NBA and equal to the NFL.  Perry later writes, “We find no evidence in our data to suggest that salary caps have helped competitive balance, measured as the variation in wins between the best and worst teams in a league in a given year, in professional sports. Further, there is some indication that the introduction of the salary cap in the NBA is associated with a significant decrease in competitive balance.”  According to this information, salary caps do not improve competitive balance, and they may actually decrease it.

One of the most exciting parts of sports besides the actual games is the offseason, this is when teams can completely rebuild.  One team could look totally different from one season to the next.  Baseball experts argue that implementing a salary cap would make the offseason boring because less teams would sign great players to huge contracts.  Everyone loves seeing their team sign a big-time player to a ridiculous contract, and that would be less common if there was a salary cap.  Also, this policy allows the market to decide what the players are worth.  In his article, Dayn Perry says, “Thanks to the structural checks in the collective bargaining agreement, [teams] also get to retain their players for six full major-league seasons at below-market rates if they choose to do so.  Once they hit the market, those players make a lot of money because the market has decided that's what they're worth.”  6 years is a long time to develop, that is why baseball players make so much after those 6 years.  They have been playing and improving their skills and learning the game for lower pay for 6 whole years.  Once that contract is up, everyone knows how much they are worth and that is how much they will get paid.

In conclusions, MLB does not have and does not need a salary cap because they are doing just fine without one.  Competitive balance is maintained, it makes for a more thrilling offseason, and it allows its players to make what they deserve.

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