by Brett Huser
The Los Angeles Dodgers didn’t just win the pennant this October; they won the payroll lottery again. Their $169 million luxury-tax bill alone tops the entire payroll of 16 Major League Baseball teams. That single stat captures why the sport’s competitive balance is broken, and why the only realistic fix is to adopt both a salary cap and a salary floor.
The greatest strength of a league like the NFL is its parity and unpredictability. USA TODAY recently noted that in 35 straight seasons, at least four NFL teams have reached the playoffs after missing them the year before. Through Week 9 this year, seven such turnaround teams sit at .500 or better. 35 games have featured winning scores in the final two minutes or overtime, representing 26% of all games played (through week 9).
In short, any fan base can have hope in the preseason. Thanks to a hard salary cap and a spending floor that forces every franchise to invest competitively, the NFL resets itself each year. The draft, schedule, free agency, and cap rules all work together to produce parity.
The same can not be said for the MLB, however. For the fifth time in the last 10 seasons, the team with the highest payroll has reached the World Series. Since 2016, all but one World Series has featured at least one top-five payroll club, and this is no coincidence, as the biggest markets continue to be the biggest spenders and winners.
Without a cap or a floor, the MLB has drifted toward feudalism or almost a form of capitalism. Big-market powerhouses like the Dodgers and Yankees hoard stars and swallow luxury-tax penalties that would bankrupt smaller clubs. Meanwhile, low-budget teams such as the Athletics and Marlins can hide behind “rebuilding” cycles while spending less on their entire roster than what a single player in New York or Los Angeles costs. This is why USA TODAY called the sport “a social experiment gone wrong.” When the Yankees’ $62.5 million luxury-tax bill nearly equals the Athletics’ entire payroll, the notion of competition starts to feel like a joke. Fans of small to mid-market teams know their fate before Opening Day.
A hard cap doesn’t punish success; it instead protects competition. It forces front offices to rely on scouting, development, and creativity, using some Moneyball ideals. Under a cap, signing a megastar means letting another walk. Teams must actually build rather than buy dynasties. Critics argue that restricting payroll limits players’ earning power. This is true to some extent, but it also broadens opportunity. When more teams can afford top talent, the free-agent market widens and careers grow longer. The NFL’s system, for example, has not left its players starving by any means.
The flip side is equally vital. A spending floor ensures owners can’t coast on profit-sharing or public subsidies while fielding bargain rosters. The Athletics’ John Fisher and the Brewers’ Mark Attanasio exemplify the problem, as petty owners who sacrifice talent to benefit themselves financially. A floor compels them to reinvest in product quality like the players, facilities, and communities that sustain the sport. If the Packers, who operate in the NFL’s smallest market, must spend at least 90 percent of the cap, why shouldn’t the Brewers?
Baseball’s competitive imbalance trickles down across all levels. Youth participation in baseball is dwindling, losing kids to lacrosse and other sports. When a 10-year-old fan of the hometown Pirates or Reds knows they will never truly contend, fandom fades. The NFL overtook baseball as America’s pastime not because it markets better, but because every fan base matters. A cap-and-floor model could reignite national engagement.
The current model guarantees labor tension, as USA TODAY warned of a looming work stoppage. A more balanced system might reduce short-term payouts, but it would enlarge the product long-term, with higher ratings, broader fan bases, and more sustainable franchises.
The NFL’s formula proves that parity sells. Fans tune in because the underdog always has a shot. Baseball, meanwhile, remains a gated community for the rich. Success should depend on roster design, player development, and timing, not on how many commas appear in a team’s payroll.
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