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Sportsbiz

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Yankees Now Own Baseball; Salary Cap to Follow

by Sportsbiz
created December 24, 2008, last edited July 06, 2009
14
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With the wholly expected signing of Mark Teixeira to an eight year, $180 million deal today, the Yankees now own the four highest active major league contracts. This is only the third big free agent contract the Yanks have signed this off-season, in response to not making the playoffs this past year. The Bombers signed pitcher C.C. Sabathia to a seven year, $161 million deal and A.J. Burnett to five years for $82.5 million. That's three players for a combined $424 million. Granted, the Yanks move into the new $1.3 billion Yankee Stadium this spring, but that's a big number even for them.

Clearly, the luxury tax hasn't fazed the Steinbrenner boys anymore than it fazed their father. The Yankees have been over the cap every year that the tax has been levied and have been responsible for 90% of the money (a total of $148.5 million, counting this year) paid in as a result of the rule. This year, the Yankees owe $26.9 million, up from last year's $23.9 million and that was for a team which failed to make the playoffs. Despite that, the Yankees' payroll keeps expanding and the disparity between it and the rest of Major League Baseball keeps growing. As it is, only the Mets and the Red Sox can even pretend to keep pace, and even they have their limits.

Baseball is the only major sport without a salary cap and the results of this year's free agent market make the case for a cap more clearly than any argument concocted by any sports writer or any owner of a small market team ever could. Try these numbers on for size. Take the salaries of just the Yankees top four in A-Rod, Derek Jeter, Sabathia, and Teixeira and you get $91.9 million next year. That is higher than the entire payrolls of 17 teams in Major League Baseball. How in the world can than possibly be good for the game, even if through injuries, bad luck, mismanagement or bad play, the Yankees fail to perform. At the end of the day, success in the World Series is not usually the determining factor in fan attendance or support of a local team. Winning helps immensely, but that means contending for a division title or playoff spot.

If baseball doesn't take measures more concrete than the luxury tax currently in force, the small market teams will not be in a position to keep talent on their rosters once those players attain eligibility for free agency. The drumbeat is starting. Milwaukee Brewers' owner, Mark Anastasio, is advocating a salary cap. He told Bloomberg : "They are on a completely different economic playing field. I paid $220 million for my team; now they get three players for $420 million. At some point it gets to be absurd when a team has a $200 million payroll." He also said that the Brewers would not be raising their $81 million payroll next season due to the recession.


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RomiezzoLegend
338 days ago
Score 5+-
This is a good article that brings up a few valid points.

Baseball is a sport, and sports are supposed to be games that involve "fair play"; hence the point of a salary cap. A salary cap helps reduce things like this to happen: to make sure that one team doesn't dominate every year because they can use all the money they've saved up to afford all the good free agents.

Now, it doesn't look like the Yankees have many kinks. They were a team who was said to have little to no pitching, and they've recently signed a pitcher who completely turned a whole team around in CC Sabathia, as well as a pitcher who isn't half bad either in AJ Burnett. And on top of that, they've signed one of the best first basemen in the game (offensively and defensively) in Mark Teixeira. Who's next? Derek Lowe? Ben Sheets? The list is endless, until it comes to a point where the Yankees are just too good to sign anyone.

A question as to whether there should be a salary cap or not was never brought up because of the fact that baseball players were not paid as much, and because of the fact that they were paid as much as the common working class... or at least something close to it. Now that the sport of baseball has become a multi-billion dollar industry, players are asking for higher salaries, and therefore, the only teams who would be able to fulfill their wants are teams with high salaries; ie the Yankees, Red Sox, etc.

The purpose of a salary cap is not only to decrease spending by the teams with higher payrolls, but it also increases competition in the league. Look at the Patriots as an example as to why there should be a salary cap in the MLB. One of the main, and very few reasons, they have dominated in recent years is because of the fact that the Pats have been able to bring in role players who work as a team. Usually, when you have players on the same team with large salaries, they let their egos get to them and they butt heads. Just look at T.R. and T.O. on the Cowboys as an example. But because of a simple salary cap, the Pats are still good, but not as good as you'd normally see them, as they're 10-5 right now.

This past season, look who made the playoffs: Red Sox, White Sox, Angels, Phillies, Dodgers, Brewers, Cubs... [and the Rays, but let's not talk about them in this case]. 7 out of the 8 teams have payrolls in the top half of the league, which is the case for [just about] every season nowadays (if not 8 out of 8). With a salary cap, good teams won't be noted as a team with a high payroll: they will be known as a team that involved great teamwork, coaching, and player scouting.

That's what I have to say about this topic. Good couple of thoughts on your part... I thought I'd just share some of mine...
Permalink | Reply
RomiezzoLegend
338 days ago
Score 2+-
I know some people will read this comment will probably say, "Well, what about the Celtics [right now]?" "What about the Tigers last year?" etc. I was just generalizing, and trying to emphasize my (and Sportsbiz's) point.
Permalink
IbeargRed-Shirting
338 days ago
Score 6+-
you can't really compare baseball in football... the yankees in the late 70's where the most dysfunctional team and yet they won 2 w.s. championships. Baseball is an individual game and being selfish wanting to get a hit up every time is 99% of the time in the best interest of your team. In football everyones on the field, and everyone makes a difference on every play but there's only one ball, so you need people to not be selfish. So the yankees or others can have as many ego's as they want as long as they all perform they'll be fine.
Permalink
RomiezzoLegend
337 days ago
Score 0+-
That's true, Ibearg. However, the more egotistical the team is as a whole, the more probable the team will not live up to its hype. (At least that's the way I see it)
Permalink
SchmiggyJKJV Squad
338 days ago
Score 3+-
This is completely absurd. How long is the MLB going to justify this lack of a salary cap. These one a season small market teams that surprise people is not enough to justify not getting rid of this extravagant spending. Year in and year out the bit market teams are performing the best. It is time for baseball to get with the times and create a cap.
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RomiezzoLegend
338 days ago
Score 2+-
And just think... if (and I'm just saying if) the Yankees don't do as well as planned with all the money they've spent, Selig's mentality will be "Oh, well, since they're not doing well, there's no need for a salary cap." Teams like the Rays last season and the Rockies two seasons ago are stories that several people will remember and look back and say that they were Cinderella stories, when the truth is that they shouldn't be (well, maybe the Rockies should be since they won 19 of 20 games to make the playoffs and to the World Series). However, both of those teams had lower salary caps, but proved that a team that has great team chemistry, coaching, managing, and and all-around good team will go further than any other team.
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SchmiggyJKJV Squad
338 days ago
Score 3+-
I dread it. And that's just it, performance shouldn't be the deciding factor on whether big spending is ok or not. Clearly there are issues like teams winning championships and nearly disbanding the next year because they can't "keep up with the yankees".
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Steel TownDraft Pick
338 days ago
Score 3+-
I long for the day a salary cap arrives.
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RawbeezeitzMajor Leaguer
338 days ago
Score 3+-
The big question is, how much should the cap be? $100 million? $80 million? And how much of a hit will the game of baseball take when the MLBPA inevitably goes on strike because of a cap?


There should be a cap, but there are many details that need to be sifted through in order to make it happen.
Permalink | Reply
IbeargRed-Shirting
338 days ago
Score 3+-
there will need to be MORE then a seasons worth of baseball missed before the players union agrees to anything close to a salary cap.
Permalink | Reply
RawbeezeitzMajor Leaguer
338 days ago
Score 3+-
So it shouldn't be put into place? Because the players are so good at making a fuss?
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Taytay 24All-American
338 days ago
Score 3+-
It's all about tradeoffs--the union will accept this if they are given something else. Tie the cap to revenues (like the NHL) so the players are guaranteed what they see as their fair share. Or perhaps increase their playoff pay. Whatever works--just get it done. Anyway, I'm glad to see others calling for this. When I mentioned it a couple years ago I got called a communist.
Permalink
RawbeezeitzMajor Leaguer
338 days ago
Score 0+-
Yeah, I used to be one of those anti-cap capitalists, but considering every other sport has a cap now changes things.


At the very least, the luxury tax should be much harsher, so bigger teams are more careful with their money, and smaller teams benefit more from being outspent.
Permalink
KelsdadAll-Star
338 days ago
Score 5+-
Sabathia's a Yankee because the Players Association didn't want him in LA. Three years from now he'll exersize his opt out and go wherever he wants. The chances of A.J. Burnett ever winning 18 games again are far less than those of him becoming the next Carl Pavano.

Even with CC and AJ, the Yanks pitching is so questionable they will likely bring back Andy Pettitte. After Chamberlain and Rivera, the bullpen is a handful of rookies and re-treads, makes me wish they still had LaTroy Hawkins and Kyle Farnsworth.

No catcher, no centerfielder, one of the worst everyday second baseman in baseball, no bench.

The Yanks have four 20 million dollar players, three or four decent accompaniments, and fifteen pieces of crap.

They may lead MLB in attendance, but that's about it. Tampa will naturally regress, Toronto, Boston and even Baltimore improved. The Yanks could just as easily finish fourth as first.
Permalink | Reply
RawbeezeitzMajor Leaguer
338 days ago
Score 1+-
"No catcher..."


Joe Mauer's current contract expires after the 2010 season.
Permalink
SportsbizWaterboy
337 days ago
Score 3+-
There is no doubt that the Yanks could easily finish third or fourth as the AL East will once again be baseball's toughest division. That, however, doesn't mean MLB doesn't need a cap. Tieing to revenue is the only way to get the players to even think about agreeing to it and it will be tougher in baseball than the other three as the rookie contracts are not as large and very few of them jump right into the majors. In addition, baseball needs to adopt revenue sharing at the same time, so a cap tied to a percentage of shared revenue can work. Right now the only revenue shared equally by all clubs is the revenue from the national media contracts and the digital media arm - MLBAM, which although considerable, helps to foster rather than end the difference between small and large market clubs. Local media revenue is not shared and can be considerable, especially in large markets.
Permalink | Reply
Anonymous Fanatic #1
281 days ago
Score 0+-
mauer=yankees
Permalink | Reply
Anonymous Fanatic #1
281 days ago
Score 0+-
kkjjjjjjuoluopuy,ly77 87
Permalink | Reply
Anonymous Fanatic #1
281 days ago
Score 0+-
mauer=yankees
Permalink | Reply
Anonymous Fanatic #2
144 days ago
Score 0+-
I dont think a salary cap would solve the problem of fairness, I think you need to add a 2 teams to make it 32 teams. Add 2 playoff spots so there is 12 of 32 who can make the playoffs and instead of restrict a players earnings realign teams based on payroll spent. example:

Yanks, Red Soxs, Mets, Phils in one division and Teams like the Pirates, Nationals, Indians, Reds in another. This would ensure teams with lower payrolls can be represented in the playoffs. As you spend more you change divisions. This would keep the schedule fresh and teams like the Pirates and Royals would have a chance to play in October.

check out the plan at:

http://thefa...gnment-plan/
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Categories: Opinions | Opinions by User Sportsbiz | December 24, 2008 | December 2008 | Baseball Opinions | MLB Opinions | New York Yankees Opinions | Mark Teixeira Opinions | Milwaukee Brewers Opinions | C.C. Sabathia Opinions | A.J. Burnett Opinions | Derek Jeter Opinions | Alex Rodriguez Opinions | Mark Anastasio Opinions

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