Large-market teams dominate baseball this year
PHILADELPHIA (AP)—Milwaukee Brewers owner Mark Attanasio thought about the teams in baseball’s final four this year—all large-market clubs—and wondered whether there would be room for his franchise anytime soon.
“We don’t know if that’s a trend or just an aberration,” he said. “The disparity among the clubs appears to be widening.”
Baseball’s four league championship series teams were all among the top nine in opening-day payroll this year, led by the top-spending New York Yankees at $201 million. They were joined by the No. 6 Los Angeles Angels ($114 million), No. 7 Philadelphia ($113 million) and the No. 9 Los Angeles Dodgers ($100 million).
No room this year for the little guys.
“It’s certainly trending in the direction,” Oakland Athletics general manager Billy Beane said. “The big markets are always going to be there. Whether or not they’re the only ones there I guess remains to be seen.”
Just last year, the Tampa Bay Rays won the AL pennant with a $51 million payroll, 28th among the 30 major league clubs. And parity has increased throughout the sport under the 1996-01 and 2002-06 labor contracts along with the current deal, which runs until December 2011.
Since the end of the Yankees’ run of four World Series titles in five years, 23 of the 30 major league teams have made the playoffs from 2001-09, with only Baltimore, Kansas City, Texas and Toronto missing out in the American League, and Cincinnati, Montreal-Washington and Pittsburgh failing to make it in the National. Seven teams have won the World Series in the last eight years, with only the Boston Red Sox taking the title twice.
Increased revenue sharing has helped the small and middle markets, and the luxury tax has slowed spending by the Yankees to some degree.
“We’ve had very good success over the last several years,” said Bob DuPuy, Major League Baseball’s president and chief operating officer. “While it has attracted people’s attention that this year the higher-payroll teams and the higher-revenue teams made the playoffs, it is just one year and not enough to declare a trend.”
Among the top 15 spenders as of the start of the season, just four had losing records this year: the No. 2 New York Mets (70-92), No. 8 Houston (74-88), the No. 12 Chicago White Sox (79-83) and No 15 Cleveland (65-97).
And just five of the bottom 15 finished with winning records: No. 18 Colorado (92-70), No. 22 Texas (87-75), No. 24 Minnesota (87-76), No. 25 Tampa Bay (84-78) and No. 30 Florida (87-75).
There’s no absolute correlation between spending and winning. But having lots of bucks helps.
“We do not ever in this organization use payroll as an excuse for a lack of performance,” Florida Marlins president David Samson said. “We expect to make the playoffs every year, and our players when they take the field don’t get intimidated by other teams’ salaries.”
“You still have to win games,” he added. “I don’t really focus on it the way frankly the media does as far as big payroll/small payroll. What we focus on is how teams are composed, the players they have and the way they build themselves and the way they perform.”
After CC Sabathia(notes) left the Brewers last offseason to sign a $161 million, eight-year contract with the Yankees, Attanasio said maybe it was time for baseball to consider a salary cap.
Now, having had nearly a year to examine and reflect, he realizes proposing an absolute ceiling might provoke a confrontation with the players’ union, which struck for 7 1/2 months and wiped out the World Series after owners tried to get one in 1994.
“There are better ways to address to competitive balance than salary caps,” he said. “There are other things we can maybe fix before you get into that very difficult conversation.”
A consensus has emerged among the major league clubs to propose two major changes to the amateur draft. One would extend it beyond the United States— players outside the 50 states currently are free agents who may sign with any team.
Another would be to eliminate negotiations for amateur players and replace them with a fixed slotting system. That could shift money from amateurs to veterans and would decrease the commissions for the advisers who represent top high school, college and international players.
All that will be subject to collective bargaining.
“In 2002, the players indicated a willingness to talk about an international draft,” said players’ association general counsel Michael Weiner, scheduled to replace Donald Fehr as union head during the offseason. “As far as slotting goes, the players traditionally have been against anything that would limit professionals from bargaining individually.”
There could be tinkering with the formulas for revenue sharing and the luxury tax—currently set at 40 percent on the amount of payrolls above a set threshold, using average annual values of 40-man rosters. Management could ask that the tax be a dollar-for-dollar penalty.
And there could be changes to the system in which teams losing better free agents receive amateur draft picks as compensation. For losing Sabathia, Milwaukee the No. 39 pick overall and the Yankees’ second-round selection, No. 73. New York’s top pick, No. 25 overall, went to the Angels as compensation for Mark Teixeira(notes).
“The draft was intended to allow the weaker teams to draft the best players and thereby improve competitively,” DuPuy said. “And as long as you’ve got the rest of the world essentially not subject to the draft, or a great portion of the world not subject to the draft, and where you have a system where the best players are not necessarily going to weakest teams, it seems that that is a place that ought to be looked at very hard.”
So for now, middle- and large-market teams realize they need to win when they have a group of young players close to the same amount of service time. They try to keep them together and go for titles before they near free agency— and the lure of big-market money.
“Everyone looks at everyone else’s payrolls, so you start sort of seeing where can they go,” Beane said. “And you realize they’re in a very short window of opportunity right now.”
And an absolute limit on spending may not be the solution. And the luxury tax thus far has affected pretty much only the Yankees.
“A salary cap is one arrow in the quiver, one tool we could look at to try to address competitive balance, but it may or may not be the most effective tool,” Attanasio said. “In my opinion anyway, this isn’t the Yankees vs. the rest of the sport. It’s are we going to have a sport where every year the only teams in the final are large-market teams?”

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26 Comments
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Divorcing the two parties (the player & The Club) so a new relationship may be formed (the player to a New Club) needs to not only enable the mover but also equally compensate the divorced Club.
This concept of value mutuality and reparation to the club under any "free agency transfer" should give the departing clubs a stronger balance sheet to compete in the market and put a competitive team on the field.
The "Balancing Compensation Payment" (BCP)paid to a club should reflect the difference between the salary paid to the new player minus the salary requirements of the received players. This would include 1st year signing bonuses and annual salary payments.
Example:
Club A: SuperPlayer gets 100m contract for 10 years and a 10m signing bonus.
Club B: 3 players 1 million each year + 2 draft choices 500K year 2
Solution: Club receives:
year 1: Club B receives: 10m signing and 7m BCP = 17m
year 2: Club B receives: 6mBCP
Alternative:
Year 1: Club B receives: single payment Net present value calculation on 100m + 7m
year 2: Club B receives: 6m BCP
In this way the Club B is compensated for the development and intrinsic asset of the player to the club brand and it's fan base.
This BCP system would provide a more realistic payment structure to players and level the playing field balance to "in-turn" allow a club to re-power their roster.
The system would also enhance the critical principal of fan allegance with children's and adult's player idols.
Note: With free agency looming, a club without the resources to sign the player is faced with only one real prospect and that is to deal the player before the deadline. We have seen that with Sabatia and this year Cliff Lee. I would like to additionally note that these 2 players were core to Cleveland and their future. Departures of both have left a very proud team in a shambles and years to recover only to be faced with the same situation again. This system relegates in reality these types of teams to AAA type clubs and a super league is born. - 8 teams playing themselves is the future. Why have a 162 game exhibition season?
Somehow this great game of Baseball must rise above the menace of money abuse that threatens the very core of the sport.. I hope my suggestion is taken to the highest levels of the sport and implemented with the spirit of American Fairness. There simply is no balance in the current justice of baseball operations.
Further comment:
Any Indians fan (and there are many around the world) are disgusted by the greed factor destroying what should be a level playing field. The sport is trending toward a super league without an immediate correction in the balance including the world-wide draft which clearly favours NY and the high money level clubs.
MLB.com is the single biggest improvement in marketing the product in years. The international baseball fan base will grow and grow. Improvements need to be made in between Innings media content. Suggestion: City profiles of clubs with empasis on the ones being watched. This would encourage fan support plus visiting the cities. This could be sponsored by airlines serving the area and area chamber of commerce.
My best to everyone associated with this great sport.
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I know they can do it!
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For those that are in denial that the Yankees bought their championship, let me break it down for you;
Of the following players that started in last night's game and the three starting pitchers, only Jeter, Posada, Gardner and Pettitte were drafted by the Yankees. That leaves Damon, Teiseira, Arod, Swisher, Burnett and Sabathia all "bought" from other teams with Matsui and Cano purchased from foreign teams. That's four of the twelve players I just listed that are "homegrown" as so many call it. 67% of those players were not homegrown. Please do not tell us the "majority of the Yankees were homegrown through their farm system". We are not retarded. You're team got to the World Series on the back of players like CC Sabathia and Matsui, neither of which were homegrown in New York. Yes Jeter and the others are more than decent but please stop trying to justify it. New York bought themselves a championship. There is nothing wrong with that. They played by the rules that major league baseball has set up. There is nobody posting on this board including myself that wouldn't do the same thing if we had the resources that the Yankees have.....but again, not homegrown.
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Anyone who thinks money doesn't correlate into wins and titles is kidding himself. When the Rangers were chasing the Angels this year, LA got Scott Kazmir from Tampa Bay (who was still in the WC race). The Rangers wanted Cliff Lee, Roy Halliday, or some other starter. Nope; couldn't afford it.
Small payroll teams sneak into the playoffs occasionally, but that's more the exception than the rule. The Twins are perennial contenders only because they're one of the best-run franchises in the sport. Cash gives you depth and stability.
It's easy to be a fan when your team can buy any player it needs. Imagine the Yankees lineup over recent years if they had to fear losing Jeter, Posada, Rivera, et al to free agency. How many diehards would watch baseball in the Bronx if the Yankees couldn't afford to re-sign their players? How would NY fans feel if Rivera calmly inked a $20M/year deal with the Red Sox to "provide security for his family"?
A salary cap will reduce baseball to a rotisserie league, as has happened with other sports. But... the competition is the product, not the outcome. If the Yankees win 120 games and the World Series for 10 straight years, would anyone, even Yankee fans, care anymore? If you suck in the NFL, NBA, or NHL, it's your fault. You can't blame money. If you suck in MLB, blame baseball's two official teams.
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They just smirk and walk away with your money when you complain! If you keep doing what you ahve always done you keep getting what you already got!
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You are truly retarded. Go seek some help.
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Two things against the cap:
1. The players have a skill that they should be compensated for. Why should they not try and make as much money as possible? If you had that skill you would all do the same thing.
2. It is expensive to go to a baseball game. Beer is outrageously overpriced. However, when was the last time you went to a game in a "capped league" such as the NBA, NFL, or NHL? The games are far more expensive and the beer is the same price, if not higher.
What they need to do is make the owners spend the money from revenue sharing rather than pocketing it. That will lead to a better competitive balance. No matter where they set the cap there will be plenty of teams way under it.
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Looks like the 340 Million to CC and Texiera along with the 300 million to AROID last year is really paying off. Amazing what buying a Cy Young and MVP winner (Aroid 08 and CC 09) within a year can do to a team. Of course we also have the other bought stars like Damon, Matsui, Burnett etc. Not to mention all the big busts that came and went WITHOUT A TITLE like Giambi, Mussina, and Sheffield and salary dumps like Randy Johnson, Kevin Brown and Bobby Abreau.
granted the homegrown talent like Jeter, Pettitte and Rivera are still GREAT but the heavy lifting this year has been done by those sellouts like AROID and Fatboy CC (and sellout Tex in the regular season)..
Again, congratulations to the yanks on their 2009 World Championship. They certainly Bought, er, I mean, earned it!!
P.S. Maybe now that they bought themselves back into the Word Series they'll be able to sell out all those empty seats behind home plate. Ahh, the house that GREED built. Too bad they priced out all of their REAL fans. You hear how quiet the NEW yankee stadium is this World Series? Pathetic..
What a hollow championship this is!!
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When do you expect to see Kansas City, Pittsburgh, Oakland, Arizona, Minnesota in the World Series again?
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The Yankees are not even in the playoffs this year without their signings of Sabathia, Burnett, and Tex on top of the other 3 most expensive contracts in baseball.
So why do we have to hear baout the players and the owners? Its the fans that should matter. Yankee fans could still see a lot of wins and maybe be able to take a family to the ballpark....along with the rest of the nation...
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A salary cap could help the health of MLB, at least clubs would now have to think of NEW ways to beat the salary cap, and still wind up with the best free-agents!! It would bring balance to MLB, it would help the smaller market clubs to at least have a CHANCE to put a winner together, and KEEP a winner on their baseball diamonds. It would at least help small market clubs draw fans to their ballparks!!
The problem will be can the OWNERS share the wealth? Can they agree for the GOOD of the game? WILL they agree for the good of the game?? Look at poor Cleveland, their fans have watched TWO Cy Young Award winners disappear, is it far to the fans of the Cleveland Indians? This is the club that signed Satchel Paige to a big league contract!!! When and WHERE does the MADNESS END??!!!
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That being said, I am very sure the Yankees are doing EVRYTHING in their power to prevent a salary cap/ceiling from being implimented. After all, what's easier to acheive, drafting ametuer talent and developing it, or letting the player develop his skills at another teams expense, then BUYING that talented player by offering more money than any medium to small market team can afford to pay him?
The cost of attending a baseball game is becoming absurd.....correction, it is absolutely insane.
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