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Should Baseball Implement a Salary Cap to Enhance Fairness and Competition?

This analysis by David Homanko explores the potential impact of implementing a salary cap in Major League Baseball. Currently, MLB is the only major North American sport without such a cap, leading to rising ticket prices and diminishing competition. With average ticket prices exceeding $72 and a significant correlation between payroll and playoff success, small-market teams struggle to compete. A salary cap could create greater equality, lower costs for fans, and foster more competitive balance within the league, ultimately benefitting the sport.

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Should Baseball Implement a Salary Cap to Enhance Fairness and Competition?

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Presentation Transcript

  1. Should There Be A Salary cap in Baseball? By: David Homanko

  2. Overview • Introduction • Games are too expensive • Competition Suffers • Players switch teams regularly • What a salary cap could do. • Conclusion

  3. Introduction • Limits the amount of money a team can spend. • Only North American professional sport without a cap. • Has been argued about for years. • Almost works as a monopoly.

  4. Price of games • Keeps rising • Average ticket price for a yankees game is $72.97. • FCI(Fan Consumer Index) is an average of $196.75 for a single fan. • Imagine what that is like for a family of 4!

  5. Competition Suffers • Since the playoffs have expanded in 1995, competition has suffered. • Over the last 15 years, 77.5% of playoff teams have been in the upper half of payroll. • Only one team in lower half won World Series.

  6. Players Switch Teams Regularly • Small market teams draft and develop players only to have them taken away by large market teams. • Example- 2003 Florida Marlins • Small market teams can’t contend in free agency.

  7. What a Salary Cap Could Do. • Create equality throughout baseball. • Drive ticket prices and other prices down. • More Parity • Shows better coaching and organizations.

  8. Conclusion • Salary Cap would benefit baseball. • Give every family a better opportunity to attend a game. • Give more drama. • Keep faces in town longer.

  9. Questions?

  10. Works Cited • "Philadelphia Phillies Salaries." Philadelphia Phillies Salaries. ESPN, 2009. Web. 26 Mar. 2010. <http://espn.go.com/mlb/teams/salaries?team=phi>. • Hobrock, Danny. "MLB Salary: Debating the Merits." Around the Horn Baseball. Brash, 04 Mar. 2010. Web. 26 Mar. 2010. <http://www.athbaseball.com/20100304206/2010-archives/march/mlb-salary-cap-debating-the-merits.html>. • Brown, Maury. "Average Ticket Prices up 5.4%." The Biz Baseball. Foxsports, 2 Apr. 2009. Web. 26 Mar. 2010. <http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=3147:average-ticket-price-up-54-percent-in-mlb-yankeesmets-skew-total&catid=56:ticket-watch&Itemid=136>.

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