Major League Baseball has seen a dramatic increase in competitive imbalance since the strike shortened season of 1994. Following the model found in the Major League Baseball Blue Ribbon Report competitive balance will exist when there are no clubs chronically weak because of Major League Baseball’s structural features. Proper competitive balance will not exist until every well-run club has a regularly recurring reasonable hope of reaching postseason play. One of the primary reasons for the competitive imbalance that does occur in Major League Baseball is the disparity that exists in how much revenue teams bring in. A portion of, mostly large market, teams such as the New York Yankees, Boston Red Sox, and New York Mets are able to bring in large amounts of revenue. Other mainly small market teams such as the Minnesota Twins, Milwaukee Brewers, and Montreal Expos can only generate small amounts of revenue. This has created a situation where teams that can generate a large amount of revenue have the best teams because they have the money to sign the best players and have the highest payrolls. The teams that have the highest payrolls also tend to have the highest winni

8th Lowest Detroit 46,610,134 43 0.265

4th Lowest Pittsburgh 42,106,059 75 0.463

To answer are essential question we do believe that a salary cap would increase the competitive balance in Major League Baseball. To illustrate this with teams say that the salary cap in our model is $80 million and the salary basement is $40 million. This would affect the Yankees very much because they would be forced to drop quality players that other teams can pick up and sign for their team. Tampa Bay on the other-hand will be forced to sign more players and they will have the opportunity to sign the quality players the Yankees let go of. Although teams could try to cheat to avoid the salary cap that is not supposed to happen and with strict enforcement will not happen. If the league is able to keep teams from cheating to spend more and less then the salary cap it will lead to Major League Baseball having competitive balance.

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