June 22, 2016

Spending Complaints

Small market teams are whining about the amount of money large market teams are spending on international signings:

Low-revenue clubs, in particular, continue to express frustration that high-revenue clubs use their financial might to exploit the international market, as well as the major-league talent pool. The Dodgers also paid a record $43.6 million luxury tax on their record $291 million payroll last season.

Manfred previously has advocated for an international draft, saying that a single method of entry into the industry would help promote competitive balance and that the influx of high-priced Cuban free agents has “put a stress test” on the current system.

Link via BBTF, where the author comments:

Owners pay more money for high-revenue clubs. High-revenue clubs also generate more money for low-revenue clubs in national broadcast packages. They also send money via luxury taxes and penalties for exceeding the international bonus pool. How much more help do they need to give low-revenue teams?

Great point. Also, remember the history of international player development. The high revenue teams did not start this, the low revenue teams did. It was a way for them to acquire cheap talent after the draft forced up the price of US players. Eventually, when the low revenue teams did very well with their academies and signings, the high revenue clubs discovered it was a good idea and decided to take advantage of that cheap talent as well. They are victims of their own success.

There will probably be an international draft at some point, but it won’t help. It will just drive these low priced players out of the game, just like the US draft drove African Americans out of the game. Eliminate the draft. Yes, high revenue teams will sign great prospects, but low revenue teams will be able to sign a lot of lower potential prospects. They’ll find some gems in those signings. If there is one thing the last 15 years showed us, smart low revenue teams can be perfectly competitive.

3 thoughts on “Spending Complaints

  1. Devon

    Is there a limit to how much teams can spend in the draft? If not, then maybe putting a salary cap on “new talent” (whether it’s through the draft or not), would work? I doubt enough teams would unite to get rid of the draft.

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  2. David Pinto Post author

    Devon » The history of MLB is full of examples of the small teams complaining about the big teams, and implementing ways to “level the playing field.” In every instance, the big teams found a way around the rules. Over time, the system gets more complicated, and in every case hurts the players. Rather than trying to stick another rule, maybe MLB should step and say, “Is this how we would have designed a system from scratch?”

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  3. Devon

    I like that thought. I hadn’t thought about just how complex it has become and that it could really be simplified. Somebody needs to make that happen.

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