Laissez-Faire Baseball: A Pitch Definitely Worth Taking
Isn’t it ironic how America’s favorite past-time shares similar flaws with the American capitalistic society we live in currently?
As MLB teams such as the Los Angeles Dodgers and New York Yankees formed super teams after the all-star break, teams like the Pittsburgh Pirates and Washington Nationals were forced to trade their star players whose contracts were too large to maintain, only reminding us further of the saying: “the rich get richer, and the poor get poorer.”
As the financial decisions of corporations in America are loosely regulated due to free-market capitalism, monopolies start to emerge, and the middle and lower classeses fall victim to this tycoon-favored economic structure. Similarly, in the MLB, a luxury tax is annually collected from each team.
The luxury tax is applied to teams who break a certain financial threshold. Exceeding the limit multiple times results in tax hikes. However, big-market teams don’t view the tax as an impediment to their front office decisions. For instance, the Yankees passed the threshold from 2003 to 2017– that’s 14 straight years!
While the MLB sees large–market teams from big cities regularly compete for playoff spots and World Series titles, smaller teams like the Baltimore Orioles have only been to the playoffs 14 times since 1923.This tremendous disparity in teams’ front office abilities has drastically reduced MLB viewership. The fact that the 2021 Dodgers 26-man payroll is five times that of the Cleveland Indians shows just how much of an advantage some teams can have over others. The Dodgers can take on large contracts that other teams cannot, making it much easier to sign the top players and win more.
Just like in a capitalistic society, the “American Dream” can take place, although it is quite the anomaly in baseball. In 2002, the Oakland Athletics “Moneyball” team had one of the best records in the Major League despite having a paltry $44 million salary. They went on to the playoffs but unfortunately lost even after breaking the all-time record for most wins in a row. A more recent example of such a team is the Tampa Bay Rays, who, despite retaining the fourth-smallest payroll in the league, have beaten payroll-heavy teams such as the Red Sox, Yankees, and Blue Jays to lead the AL East.
With World Series ratings and viewerships falling rapidly, the MLB should look to the NFL for guidance. The National Football League has a set salary cap for each team and enforces stringent punishments for exceeding the limit. In the NFL, every team has a competitive chance to be successful no matter the market in each team’s area. The Green Bay Packers, whose stadium can fill over 80% of its Green Bay citizens, are consistently beating the New York Giants and Los Angeles Rams. Likewise, unlike the MLB’s Pittsburgh Pirates, who have made the playoffs only 17 times in 116 seasons, the Steelers have made the playoffs 30 times since just 1970!
Making the League more competitive instead of only applying to the fans in the cities that generate the most profit is what the MLB needs.