The possible implementation of a salary cap is one of the biggest issues dividing Major League Baseball and the Players Association (MLBPA) as collective bargaining agreement (CBA) negotiations are set to begin in the spring.
The league believes a salary cap is necessary to improve competitive balance, while the players remain strongly against one, as it would limit their potential earnings.
As it currently stands, MLB is the only major North American professional sports league without a salary cap. The NFL, NBA and NHL all have one, in addition to a salary cap floor.
MLB commissioner Rob Manfred said he likes the idea of a spending floor in baseball to help level the playing field, via Evan Drellich of The Athletic:
“The question of incentivization is a really important one. Three other sports have dealt with it by having a rule: you got to spend,” Manfred said, referring to basketball, football and hockey. “Everybody talks about the cap piece. The cap piece comes with another piece where you have to spend. And I think mandating a certain level of commitment in terms of spending in the right kind of economic system can be a good thing.”
A salary cap floor, in theory, would force smaller-market teams to spend more money to improve their rosters. The league also believes a cap would prevent big-market teams from significantly outspending others.
Manfred previously said that improving the competitive balance is one of his top priorities in the next round of CBA talks. He also wants to find a solution for regional blackouts so that fans have an easier time watching their local team’s games live.
Dave Roberts in favor of MLB salary cap & floor
Los Angeles Dodgers manager Dave Roberts recently said he would be in favor of a salary cap and floor in baseball if the league uses a similar model as the NBA.
The NBA salary cap is determined annually based on a percentage of the league’s revenue and designed to ensure competitive balance by limiting total player payroll spending.
Teams must also reach a salary floor — usually at least 90% of the cap — which is something many have called for in MLB.
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