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OT - I'm bored, Part Pangos & Bell!

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Bloody Brian Burke

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the system isn't perfect, but as a small market fan it's absolute torture having the current system. I spent my childhood watching a team refuse to spend, and there was nothing forcing them to. I'll watch more stars leave because they'll be priced out by big teams, simply because my favorite team is in Pittsburgh and not NYC. That's bullshit. Not sure how else to explain it. Small market teams having success? Cool, but it is absolutely in spite of the system that exists. They have to work much harder with fewer resources. I hate that. Again, it doesn't have to specifically be a cap, but there should be some form of restriction or penalty. That trade today was a perfect example. Arroyo is straight salary dump, Morse acquired as relief and then DFA'd. They ate $43.5M in that trade, which made them able to acquire better assets. Bullshit. It is bullshit.
The issue with the Pirates and their two decades of complete ineptitude was the revenue sharing that made it easier for owners to not invest in their team and still be profitable off the backs of profitable teams.

You should be thankful that there are dumb teams who continue to shell hundreds of millions on superstars once they hit free agency - the rate of those players not turning into steaming piles of garbage after signing Huge money deals at the end of their prime years has to be something like 20%.

And there is a luxury tax in place, and the Dodgers pay a fortune into it and will continue to do so for the foreseeable future. Eventually, it's going to catch up to them.
 

dare2be

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The issue with the Pirates and their two decades of complete ineptitude was the revenue sharing that made it easier for owners to not invest in their team and still be profitable off the backs of profitable teams.
A cap floor would have done wonders in preventing that from happening. As you point out, revenue sharing doesn't work unless it is supplemented with a floor/cap. So either have both, and keep the health of the league intact, or have neither and let some of the lesser markets whither away into oblivion.

You should be thankful that there are dumb teams who continue to shell hundreds of millions on superstars once they hit free agency - the rate of those players not turning into steaming piles of garbage after signing Huge money deals at the end of their prime years has to be something like 20%.
What should we be thankful for? Diving up the salary rates for the entire league because they can, putting more financial squeeze on the smaller markets to field a competitive team?
 

Bloody Brian Burke

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A cap floor would have done wonders in preventing that from happening. As you point out, revenue sharing doesn't work unless it is supplemented with a floor/cap. So either have both, and keep the health of the league intact, or have neither and let some of the lesser markets whither away into oblivion.


What should we be thankful for? Diving up the salary rates for the entire league because they can, putting more financial squeeze on the smaller markets to field a competitive team?
The salaries would be driven up regardless due to the TV revenue that has been injected into the league in the past 5 years. Unless you're advocating that the owners keep all that for themselves, a baseball salary cap has the potential to be $150 million or higher regardless - the league saw $9 billion in revenues last year, which if split 50-50 and then the players' half is divided by the 30 teams would result in a salary cap that is higher than the current payroll of all but 6 teams. The small markets would be in the same predicament as today except they'd be forced by the CBA to spend a certain amount that may be over their budget and drive them into debt.
 

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result in a salary cap that is higher than the current payroll of all but 6 teams.
It is those 6 teams that create the imbalance we are talking about here. (I alluded to it earlier). I could see a feasible cap of 150m with a floor of 75m, a 2x variance to allow for market variability yet a level-enough playing field to prevent gross inequities. It would force the bottom-feeders to spend enough to field a competitive team yet also force the top-spenders to spend more wisely.
 

Bloody Brian Burke

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It is those 6 teams that create the imbalance we are talking about here. (I alluded to it earlier). I could see a feasible cap of 150m with a floor of 75m, a 2x variance to allow for market variability yet a level-enough playing field to prevent gross inequities. It would force the bottom-feeders to spend enough to field a competitive team yet also force the top-spenders to spend more wisely.
The problem is a floor of $75 million wouldn't ensure a clean 50-50 split of revenues. It would have to be 9 figures and small-market clubs would not like that.
 

dare2be

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I don't know where you got the $9B figure, but even the current salary total isn't even close to half that now ($3.6B), with an average of $121M per team. Player salaries aren't the only cost to clubs, so I don't think a 50-50 split is reasonable.
 

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It is those 6 teams that create the imbalance we are talking about here. (I alluded to it earlier). I could see a feasible cap of 150m with a floor of 75m, a 2x variance to allow for market variability yet a level-enough playing field to prevent gross inequities. It would force the bottom-feeders to spend enough to field a competitive team yet also force the top-spenders to spend more wisely.

That's about what I always hoped for. Some teams can still spend far more than other, but there would not be any team playing another that has a payroll almost 10 times greater.
 

Bloody Brian Burke

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I don't know where you got the $9B figure, but even the current salary total isn't even close to half that now ($3.6B), with an average of $121M per team. Player salaries aren't the only cost to clubs, so I don't think a 50-50 split is reasonable.
Major League Baseball Sees Record $9 Billion In Revenues For 2014 - Forbes

I suppose there's a trim down to baseball related revenues, but safe to say a cap would still probably wind up around the parameters I mentioned.
 

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Also, that total salary figure would put it at 40% of total revenues, which means player salaries may already be lower than they should be.
 

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Sounds like the Orioles have gotten Gerardo Parra.
 
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Also, that total salary figure would put it at 40% of total revenues, which means player salaries may already be lower than they should be.

I assume the payroll salary doesn't include international or draft bonuses or minor league salaries. Baseball is weird in the way talent is brought into the league, and that has to be accounted for as well.
 

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dare2be

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Major League Baseball Sees Record $9 Billion In Revenues For 2014 - Forbes

I suppose there's a trim down to baseball related revenues, but safe to say a cap would still probably wind up around the parameters I mentioned.
Oops, that's the 2014 revenues, and I gave you the 2015 salaries. It's actually $3.4B out of $9B.

I can't see salaries being anywhere near 50%, considering that of that 9 billion, only 600 million was net income (I summed the numbers from the Forbes list), a 6.7% margin. Even if all 600 milliion in profit was allocated to salary, that would only get the split up to 45-55.
 

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Oops, that's the 2014 revenues, and I gave you the 2015 salaries. It's actually $3.4B out of $9B.

I can't see salaries being anywhere near 50%, considering that of that 9 billion, only 600 million was net income (I summed the numbers from the Forbes list), a 6.7% margin. Even if all 600 milliion in profit was allocated to salary, that would only get the split up to 45-55.
Profit ain't got nothing to do with it, as we've learned through multiple NHL lockouts. It's all revenue based.
 
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