Salary caps make poorer teams worse off

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Practically speaking, the idea of a salary cap in baseball is dead. Deader than vaudeville. It blew up the game in 1994-95, and the owners and Selig blinked rather than try it again in 2002.  Since then the money has been flowing, competitive balance has been better than most people will admit, and the owners seem to have very little desire to fight that fight again.  It’s not going to happen.

But that won’t stop some people from calling out for it.  Every time the Yankees sign someone people scream salary cap. Every time a homegrown star leaves a small market team they do the same.  I can assure you, I get at least one comment or email a week from someone that contains a sentiment akin to “. . . this will continue to be a problem until baseball has a salary cap.” Otherwise smart people claim to shun baseball based on it not having one. From what I can gather, the thought process goes “Football popular. Football have salary cap. Baseball have salary cap too or me no like baseball.”

But guess what: the salary cap doesn’t help. To the contrary, they have made matters worse. That according to Matt Ozanian of Forbes, who has studied the matter and reports that salary caps have “served to make high-revenue teams enormously profitable and low-revenue teams unprofitable, or marginally so, relative to their rivals. The growing distortion in profitability has resulted in a bigger gap in team values.”  The rich get richer?  Wasn’t that supposed to be the problem salary caps designed to solve, not the outcome they sought to promote?

But even they weren’t bad ideas economically speaking — which they certainly are — they’re awful from an aesthetic perspective as well. They insert unsightly, unwieldy, and downright complicated concepts like “franchise tags” and “expiring contracts” into the sporting discourse. Sure, that stuff is comprehensible — every team can hire a cap guru if they felt the need and most of us could get our heads around caponomics if we had to — but it’s just depressing business.  One team trading its dead weight to another team is simply dreary. I mean, we hate it now when some teams make great efforts to acquire all the best players. How would we feel about it if they spent a lot of time trying to get the worst, most overpaid ones? Blah.

Anyway, I know some of you have been brainwashed into thinking that salary caps = fairness and parity. If you have, please take a closer look at the linked article and the NFL, NBA and NHL as a whole and ask yourself if their systems really make things better than baseball’s admittedly imperfect system.

New bill to build Athletics stadium on Las Vegas Strip caps Nevada’s cost at $380 million

D. Ross Cameron-USA TODAY Sports
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CARSON CITY, Nev. — A bill introduced in the Nevada Legislature would give the Oakland Athletics up to $380 million for a potential 30,000 seat, $1.5 billion retractable roof stadium on the Las Vegas Strip.

The bulk of the public funding would come from $180 million in transferable tax credits from the state and $120 million in county bonds, which can vary based on interest rate returns. Clark County also would contribute $25 million in credit toward infrastructure costs.

The A’s have been looking for a home to replace Oakland Coliseum, where the team has played since arriving from Kansas City for the 1968 season. The team had sought to build a stadium in Fremont, San Jose and finally the Oakland waterfront, all ideas that never materialized.

The plan in the Nevada Legislature won’t directly raise taxes. It can move forward with a simply majority vote in the Senate and Assembly. Lawmakers have a little more than a week to consider the proposal before they adjourn June 5, though it could be voted on if a special session is called.

The Athletics have agreed to use land on the southern end of the Las Vegas Strip, where the Tropicana Las Vegas casino resort sits. Oakland Mayor Sheng Thao has said he is disappointed the team didn’t negotiate with Oakland as a “true partner.”

Las Vegas would be the fourth home for a franchise that started as the Philadelphia Athletics from 1901-54. It would become the smallest TV market in Major League Baseball and the smallest market to be home to three major professional sports franchises.

The team and Las Vegas are hoping to draw from the nearly 40 million tourists who visit the city annually to help fill the stadium. The 30,000-seat capacity would make it the smallest MLB stadium.

MLB Commissioner Rob Manfred said a vote on the Oakland Athletics’ prospective move to Las Vegas could take place when owners meet June 13-15 in New York.

The plan faces an uncertain path in the Nevada Legislature. Democratic leaders said financing bills, including for the A’s, may not go through if Republican Gov. Joe Lombardo vetoes the five budget bills, which he has threatened to do as many of his priorities have stalled or faded in the Democratic-controlled Legislature.

Under the bill, the Clark County Board of Commissioners would create a homelessness prevention and assistance fund along the stadium’s area in coordination with MLB and the Nevada Resort Association. There, they would manage funds for services, including emergency rental and utility assistance, job training, rehabilitation and counseling services for people experiencing or at risk of homelessness.

The lease agreement with the Las Vegas Stadium Authority would be up for renewal after 30 years.

Nevada’s legislative leadership is reviewing the proposal, Democratic state Assembly Speaker Steve Yeager said in a statement.

“No commitment will be made until we have both evaluated the official proposal and received input from interested parties, including impacted community members,” Yeager said.