Thursday, November 19, 2009

It's Time To Get Rid of Salary Caps in Sports

Even before the Yankees won their 27th World Series a few weeks ago, the cries were coming out from all corners of the U.S. that the Yankees bought their way to another World Series title. Apparently, money buys championships, talent will not win them for you.

I find it amusing that the Yankees had the highest payroll every year over the last decade, yet they did not win a World Series title. Many teams over the years have spent big money on high profile free agents, and they have not been successful, with the Yankees included in this group. Spending money does not win championships. The way your players perform on the field wins championships.

Many fans of baseball think that there ought to be a salary cap. They point to sports like football and basketball that already have salary caps as examples for how it should be done. These sports have parity. They are not dominated by big market teams that have more money to spend. Each team is only allowed to spend a certain dollar amount on players.

But these points look beyond the basic reason for the salary cap - to try to make the bad teams better and to try to make the good teams worse. The salary cap is basically forced mediocrity. By instituting a salary cap, the league is saying that they do not want teams to excel. They do not want franchises to excel.

I do not think that forced parity is a good thing. I think that the free market is a good thing. Salary caps in sports amount to socialism - an attempt by the league to put everyone on the same level playing field without allowing any one team to get too far ahead of the others. It does not allow for franchises to spend their revenue on making their team better. In fact, it forces teams that spend too much money to give money to lesser teams in order to help bring them up to a better level. However, there is nothing in place that forces those lesser teams to spend money on actually making their franchise better (kind of sounds like many government programs today).

Let us not forget that these franchises are businesses. The people that own the teams are looking to be profitable. They do not want to simply break even - that would not be a wise investment if this were their only goal. What would Wal-Mart do if they were forced to give some of their profit to the likes of K-Mart and Target? After all, Wal-Mart is the largest retailer, with K-Mart and Target coming in way behind them in total sales. If we used the logic many are using in sports, then we would need to reign in Wal-Mart, not allowing them to expand, and forcing them to give money to their competitors in order to help pull them up to Wal-Mart's level.

This is just ludicrous. And I doubt that any company out there would want to give their hard-earned profits over to their competition in order to level out the playing field. The government may want businesses to do this, but the businesses definitely want no part of this.

And why should be castigate teams like the Yankees (and to a lesser extent, teams like the Red Sox, Angels, and Dodgers) for spending money to make their teams better? I would much rather work for a company that is willing to invest in the people that work for them in order to make that company stronger, more viable in the marketplace, and successful against the competition. Maybe that is why players are willing to sign with the Yankees - because the Yankees understand what it takes to be successful. Yes, they are in the biggest market. Yes, they do make a lot of money. But they want their team to be the best.

And they also pay a very large amount to other teams in the form of a Luxury Tax. Why don't we go to the teams receiving that money to find out how they are spending it. Are they spending it on players to make their teams better? Or are they putting it in their pocket? My guess is the latter.

The argument is made that people will not attend games if the stars are not playing on those teams. While this may be true, one must look at why these teams have no stars. The Montreal Expos traded their stars away. The Pittsburgh Pirates seem to trade their stars away, as do other teams. They are not investing in high dollar contracts with their up-and-coming stars. They say they do not have the money, or they give some other lame excuse. Maybe if they did sign one or two of these stars, then people would come to games, which would enhance revenue. Maybe they would start winning, which would drive more people to come to games.

Small market teams can be successful. Teams like the Minnesota Twins and St. Louis Cardinals are good examples of this. They put competitive teams on the field and people attend their games. It can be done. Maybe other small market teams need to look at these franchises, take notes, and implement some of the same things to make their teams better.

One other thing that proponents of the salary cap point to as a benefit is parity. Why is this good? Why must different teams win the title each year? What is wrong with a dynasty? What is wrong with a team having continued success year-after-year-after-year? The ultimate goal is excellence, not mediocrity.

It all boils down to this - As a society, we have become so accustomed to our government always trying to level the playing field through government programs that we no longer view this as wrong. The government wants businesses to pay more because they are successful and profitable (e.g. oil companies). We see in society that successful people are being taxed more because they are supposed to be able to afford it. People who are not working and not trying to work are given a handout, without really ever being told how to be successful and make something out of their lives. We have created a society where class envy has reached the point that we want to take from the rich in order to give to the poor, and many people see nothing wrong with this. In fact, they encourage it.

And now sports is becoming a microcosm of society. We do not want to see the successful continue to be successful. We want the underachievers to succeed, but only at the expense of the successful. If teams are losing money and not being successful, why should they be bailed out? After all, weren't many people upset (and rightfully so) when our government bailed out financial institutions and automobile manufacturers? Where is that same anger now?

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