(07-30-2021, 11:53 AM)Goose Wrote: It may need to change because of human behavior. Fans aren't going to take into account the fact that buying a championships isn't easy. That it is even possible will turn many fans off. Worse still, many teams will agree with my read about the fans and will be driven to spend more than they can afford to stay competitive. That will undermine the financial stability of at least a few teams. Having franchises fold is not a good look. Fortunately, I think MLB is aware of their own behavior problems and will tweak the luxury tax to the point that there is a such a penalty for exceeding X dollars that nobody can afford it. That isn't to say teams can't get in trouble anyway by overspending. A progressive tax can still cost a lot of money before it becomes prohibitive. However, as long as it appears there is a real limit the "buying a pennant" threat will not be viewed as a serious problem.
You have MLB's problems backwards.
1. Fans aren't turned off by a few teams having large payrolls; they are turned off by the number of teams refusing to compete by prioritizing profit, pocketing over $100,000,000 per year in revenue sharing and CBT payments while maintaining payrolls as low as $40,000,000. The Pirates are the worst offender but the As aren't far behind. No coincidence that these are the teams with attendance problems. What MLB needs - if broad competitiveness is the goal - is a salary floor, not a stricter salary cap.
2. Teams aren't overspending to remain competitive, see #1 above. Again, the problem is that there is no mechanism to prevent teams from pocketing revenue share payments while minimizing payroll. Even large market teams owned by billionaires (see Cubs) are downscaling payroll instead of fielding the best possible team within the CBT constraints.
3. No team is in financial distress or in danger of folding, again see #1 above. Accounting maneuvers can manipulate P&L statements but dramatically increasing franchise values across the board tell the real story. There is no shortage of buyers whenever a team is up for sale. National TV rights distributions alone prevent any team from facing financial hardship.
4. Parity is at an all-time high. In the last 20 years there hasn't been a single repeat champion and the free-spending Yankees and Dodgers have won one World Series each. Compare the percentage of MLB teams that have qualified for the playoffs in the last two decades to the salary capped NFL and NBA. There is a lot more payroll parity now than in the golden era of the 50s and 60s when teams such as the Yankees and Dodgers exponentially outspent smaller market teams. The Kansas City As were basically a farm team for the Yankees; these days the Royals are a competitive team that has reached two World Series (and won one) in the last seven seasons, while the Yankees haven't been in the WS since 2009.
Since the advent of the free agency era in 1976 people have lamented that large market teams are going to dominate the sport, and that small market teams will have to be contracted, however the sport has thrived. The dangers to the game have to do with an aging fan base, with problems with the product itself (pace of play, etc) and with a financial system that rewards teams that don't put the strongest possible team on the field.
We shall see if the next CBA addresses the competitiveness issue by instituting a salary floor, because a hard salary cap is a solution in search of a problem that doesn't exist (or at least hasn't manifested itself.)