Major League Baseball is reportedly pushing to install a salary cap to close the gap between MLB's richest teams and its smaller-market franchises.
According to Evan Drellich of The Athletic, commissioner Rob Manfred has said MLB's economic reform committee is focusing on television distribution and revenue disparity, but an industry source told Drellich an "underlying motivation" of the committee is to address small-market owners' concerns:
"The whole idea is to basically come up with a system that gets to a salary cap. Rob didn't lie by saying it has to do with the [regional sports networks], dealing with the RSNs. Because these teams will lose more money and the disparity will get bigger. So they're using that excuse to have a study committee."
The MLB Players Association has remained steadfast in its opposition to a salary cap. MLBPA Executive Director Tony Clark told reporters Saturday that players are "never going to agree to a cap."
Drellich noted Feb. 19 that MLB created the committee with Bally Sports near bankruptcy in part to address the impact that would have on MLB games that air on RSNs, but also to explore solutions for "owners who are unhappy about the difference in the amount of money teams make."
While MLB's haves and have-nots have long experienced financial disparity as big-market teams spend huge money and small-market teams scrape by, it has seemingly gotten more pronounced.
The New York Mets, led by billionaire owner Steve Cohen, have become the poster child for throwing money around as they lead MLB with a $336 million payroll, according to Spotrac. That puts them nearly $70 million ahead of the second-place New York Yankees.
While the Mets, Yankees, Philadelphia Phillies, San Diego Padres, Los Angeles Dodgers, Toronto Blue Jays and Los Angeles Angels all have payrolls that exceed $200 million, nine teams hold payrolls under $100 million.
That includes the Oakland Athletics, the lowest-spending team in MLB at just $40.9 million.
Lower-spending teams can hope prospects contribute at a high level after being called up, but it is nearly impossible for them to contend with the big spenders.
A salary cap could level the playing field, but it would also cap the earning potential of players, which is why the MLBPA has no interest in making it happen.
MLB is the only one of the four major North American sports leagues without a salary cap. That has allowed more players than in other leagues to earn massive contracts, including the nine-year, $360 million deal Aaron Judge signed to remain with the Yankees this offseason.
Judge is one of 12 players with a contract of $300 million or more, including Angels outfielder Mike Trout, who leads MLB with a $426.5 million contract.
MLB tried to push through a salary cap in 1994, but it led to the 1994-95 MLB strike, which canceled the 1994 World Series.
MLB would likely meet similar resistance from the players this time around, and the threat of missing games because of another strike may temper attempts to fight for a salary cap.
