(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Salary Cap and Major League Baseball


             A salary cap is best defined as a limit that teams can spend on player contracts. There are two types of salary caps a hard cap and a soft cap. A hard cap does not allow a team to exceed the limit for any reason. An example of a league that uses a hard cap is the National Football League. A soft cap has exceptions which allow teams to exceed the cap for certain reasons. The National Basketball Association is a league which has a soft cap. For this paper we will be looking at how a hard salary cap would affect parity in Major League Baseball. There would also be a minimum salary limit. This means that every team in the league would have to keep their payrolls below a certain amount and above a certain amount. By also having a minimum salary teams would not be able to put together a team that essentially cannot compete because payroll was kept low in order to maximize profits. .
             The criticism that the New York Yankees organization hears about every year is that they are essentially buying a championship when they have a payroll that is much higher than anybody's in baseball. The Yankees payroll was 156 million last year compare that to the team with the second highest payroll the Los Angeles Dodgers at 115 million and it is easy to see that the Yankees are able to spend much more money on their team than any other organization. Then compare the Yankees payroll to the lowest 21 team payrolls and the Yankees payroll more than doubles any of these teams. This shows that teams on the high end of payroll have much more money to work with when signing players to play on their teams. However our measure of competitive balance focuses on whether the salary cap would be able to allow all teams, particularly teams with the bottom ten payrolls to be competitive or would it have no affect or would it make the situation that exists worse. To proceed we must introduce our production function.


Essays Related to Salary Cap and Major League Baseball

1. Baseball Salary Cap

The lack of a salary cap has brought about controversy in major league baseball. ... The salary cap debate is not a new issue in baseball or in sports. ... The first proposal in 1990, by then Major league baseball commissioner Vincent, did not have any equal revenue clause, so the owners dropped their demands for a salary cap and began a 32-day lockout. ... The other fan-based argument would be that the major league does not need a salary cap because it would take away great dynasties of domination that people love to watch. ... Sriram Krishnan shows an example through the NFL, a league w...

  • Word Count: 1455
  • Approx Pages: 6
  • Has Bibliography
  • Grade Level: High School

2. Salary Caps for Sports Leagues

Let's remember that the union continues to think a salary cap is the work of Satan. ... This salary cap, or some version of it, would serve to protect owners from losses incurred as a result of bidding wars for superstar players. ... Ravitch, attempted to justify a salary cap by noting that 19 of 28 professional clubs "lost" money according to last year's accounting books. ... Meanwhile, the Twins and major-league baseball asked the state court of appeals to lift the injunction preventing owners from folding the team next season. criticized commissioner Bud Selig for five years of in...

  • Word Count: 3037
  • Approx Pages: 12
  • Grade Level: High School

3. baseball

Economically, there is a major problem with Major League Baseball right now. Major League Baseball reported that it lost over five hundred million dollars in the 2001 season (Banks 1). ... With salaries like Manny Ramirez's, it shouldnt surprise people that major league franchises can lose money in a given season. ... MLB teams also share an equal amount of money, which was $24.401 million in 2001, as a result of national revenue from Major League Baseball's TV deals and properties (Banks 1). ... Better competition is another reason Major League Baseball would like to contrac...

  • Word Count: 3444
  • Approx Pages: 14
  • Grade Level: High School

4. Salary Managment Who Needs It

There is a separate salary cap for rookies entering the league. ... Baseball doesn't have any form of salary cap, although it does have a luxury tax on teams spending over the league's set amount (Staudohar 8). Although a salary cap was never implemented in Major League Baseball, there was talk of a cap. ... "In 1976, the average salary of a Major League Baseball player was $51,000. ... I have a personal interest in this topic because I have a cousin that will soon be playing baseball in the majors. ...

  • Word Count: 993
  • Approx Pages: 4
  • Has Bibliography
  • Grade Level: High School

5. A Guide to the Troubles of Pro

At midnight on August 12, action ceased at the major-league level when the players" union stubbornly refused to accept a salary cap proposed by an equally intransigent bloc of owners. ... The league sets a salary cap because they think it could solve some problems for the league but the players are greedy and think that will take away from their revenues. ... When a team spends that much money on players they hurt the league because of the salary cap issues and afterwards the players might threaten to go on strike. ... The bitter strike by major-league baseball players in 1994 a...

  • Word Count: 1955
  • Approx Pages: 8
  • Grade Level: High School

6. Baseball Blues

The salary cap is a main reason for strikes, and as Michael Knisley states in the 01/31/2000 issue of Sporting News "Let's remember that the union continues to think a salary cap is the work of Satan. ... The way that David Kaplan sees it in the 8/26/2002 issue of Newsweek, he thinks all major leaguers should be free agents. ... To be a free agent right now, a player has to already have five years of major league baseball experience. ... Only thirty-four percent of the players in the major league are actually free agents. ... In these few number of players, these players make up sixty-...

  • Word Count: 859
  • Approx Pages: 3
  • Grade Level: High School

Got a writing question? Ask our professional writer!
Submit My Question