Imposing salary cap on player salaries would be a mistake

By Mark Reutter

A  salary cap for baseball players is not the answer to the revenue gap
between large-market teams and smaller franchises and should be "de-linked"
in negotiations to end the baseball strike, a UI expert says.

"Owners claim that a salary cap is necessary to prevent the rich and
talented teams from buying up the best players. This argument is wrong both
in theory and practice," says Stephen F. Ross, a UI law professor who
specializes in sports law. 

The salary cap, in fact, has been a boon to the sport by enabling the
managements of weaker teams to sign quality players through free-agency, or
the open bidding for players with six or more years of major-league
service. 

"Since the 1977 season, when free-agency was started, 22 teams have won
division titles," Ross noted. "That compares with four teams that dominated
in the years 1969 to 1976. Free agency has opened the door to greater
rivalry among teams - to the benefit of fans and to club owners who have
enjoyed higher attendance and gate receipts."

A side effect of free bidding, of course, has been soaring salaries. Team
owners propose to deal with multimillion-dollar player contracts by
imposing a salary cap that would prevent any team from spending more than
110 percent of the league average for player talent. Owners claim a salary
cap is needed to staunch the flow of red ink among 12 money-losing clubs.

While the concern of the smaller owners is legitimate, Ross said, the
solution is not a salary cap. "At present, each club keeps the revenue it
can earn from local broadcasts and shares only a fraction of the receipts
from live attendance at the ballpark. That creates huge disparities between
big-city franchises like New York and smaller franchises like Seattle. It
seems particularly unfair since fans in New York go to see the Yankees play
against the Mariners' Ken Griffey Jr., not simply to see the Yankees put on
an exhibition by themselves."

Ross said the smaller franchises could be significantly strengthened by
sharing 40 percent of revenue from live attendance with the visiting team
and putting 40 percent of local broadcast revenues into a pot to be shared
by all. 

He also proposes that owners consider adopting a version of the National
Football League's "Rooney Rule," which bars the top teams in each league
from signing any veteran free agents except to replace one of their own
veterans lost to a rival's bid. 

"This proposal could enable the weak teams to spend what it takes to become
contenders while preserving competitive options for all veteran players,"
Ross said. "It might reduce some multimillion-dollar offers, but players
should be expected to share in some sacrifice. Right now, both sides need
to play ball."