MLB Needs a Salary Floor, Ceiling
The Pittsburgh Pirates will start the 2020 MLB season with the league’s lowest payroll. (Photo:©Matt Freed/Post-Gazette)
A great topic came up in Episode 22 of the BCSC Podcast (see video below), as BCSC contributor Jeff Kurtz called for a shift in thinking by baseball fans, in terms of the luxury tax placed on teams going over the salary threshold. Our trusted colleague Brian Vilven immediately asked for, and he shall be granted, an article on this very topic.
Jeff firmly believes that baseball owners have a ton of money to spend on players, but in order to maintain their profit ratio for the year, the majority of them are not willing to spend that money. His argument is aided by the recent filed grievances against the Pittsburgh Pirates by the Major League Player’s Association. Union leader Tony Clark contends that the Pirates are failing to use revenue-sharing compensation to improve their on-field product per MLB’s Collective Bargaining Agreement (CBA).
Penalize teams on both ends of the salary spectrum.
Arguing against this point is difficult as the Pirates are projected to have the lowest payroll ($57 million) when the 2020 season begins. And to add further evidence to the case, the Pirates payroll has decreased by $20 million from last season’s final totals. The Pirates’ salary number has steadily declined over the last four seasons.
It is time for Major League Baseball to implement a floor and ceiling salary limit, which penalizes teams on both ends of the salary spectrum. Keep the rules the same for teams to pay a percentage of every dollar by which their payroll exceeds the set threshold, but create a new rule for teams to pay the same percentage of every dollar by which their payroll fails to meet a set minimum dollar limit.
This approach would force teams like the Pirates, who are in constant rebuilding mode, to change their offseason plans. Under a salary floor system, they would be forced to pursue talent through the free agent or trade market, instead of the current system which offers no incentive for them to spend money to improve their team. For years, this type of behavior have been reckless, and it has caused a definite shift in baseball’s competitive balance.
Fans would rather scream about their team’s front office incompetence rather than their failure to spend money.
The other owners would never publicly criticize the Pirates, even though they are projected to be one of the worst teams in all of baseball. The owners’ collective company line, how Pirates principal owner Robert Nutting is operating under the accordance of baseball’s current rules, will be given. The best interest of the Pirates’ fanbase is never taken into consideration.
Should the rules change? You bet, and fast. The large gap in payroll has created a fiscal imbalance between the large market and small market teams in baseball. Do not misconstrue my comments, I am not basing a franchise’s success on how much money they spend on player salaries in a given season, but, a guideline needs to be set, so teams like the Pirates are forced to open their wallets and put out a worthy product on the field.
Spending money doesn’t guarantee success, but fans would rather scream about their team’s front office incompetence rather than their failure to spend money. The time is right for baseball to gain more of a competitive balance that re-ignites dwindling fan bases. If a solution is not found, the “have’s” will continue to acquire whatever players they want from the small market franchises, and the “have not’s” will continue to be behind the eight ball.