Effects of not having a salary cap in MLB

Effects of not having a salary cap in MLB - Salary Cap 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Salary Cap 1 Effects of not having a Salary Cap in Major League Baseball Myers Elliotte Communication Skills 1016 Virginia Tech University March 30, 2009
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Salary Cap 2 Major League Baseball Players make the most money on average than any other major sport in the United States; they on average made $3,154,845 in 2008 (MLB salaries, 2008). Right now there are 30 teams in the MLB, all across the country. They are separated into two leagues called the National League and the American League. In these two leagues, there are three divisions and the winner of each league competes against each other in the World Series. Baseball has always been America’s past time; in 2008 78,591,656 fans attended Major League Baseball Games (MLB attendance, 2008). Baseball has not been like any other sport in the U.S. when it comes to paying athletes, they have no salary cap. A salary cap is defined as “limiting how much teams can pay their players” (Kesenne & Jeanrenaud, 1999, p.71). The effects of not having a salary cap has introduced final offer salary arbitration, luxury tax, monopolies and increased salary of players. In 1974, Major League Baseball decided to add what they call salary arbitration. Final offer salary arbitration is not a simple definition. It consists of the player who has been in the league three to six years giving an offer of how much he is worth and the team he plays for presenting how much they would offer to pay him to a Major League Baseball Arbitrator and the arbitrator would decide which salary is fair to pay the player for that next year (Frederick, Kaempfer, & Wobbekind, 1992, p. 32). Just because a player files for arbitration it does not mean the team and player have to wait for the arbitrator to decide, they can continue to negotiate and even sign to a contract/deal. This has an effect on the free market of baseball and is essentially a way to keep players with the team they play for and give them a fair deal. The arbitrator has 6 factors he can include when deciding final offer salary arbitration which are: the player’s contribution to his club during the past season; the length and consistency of the player’s career contribution; the player’s past compensation; comparative player salaries;
Background image of page 2
Salary Cap 3 physical or mental defects affecting the player’s performance; and the club’s recent performance” (Faurot & McAllister, 1992, p. 699). Final Salary Arbitration benefits the team more than player because that player is not allowed to negotiate with any other teams; therefore his free market value is way higher than just for the team he is in final offer salary arbitration with. For example Albert Pujols who plays for the St. Louis Cardinals in his first 3 years was only paid 1.7 million dollars but over this time he won rookie of the year, MVP runner up in his 2 nd year and MVP in 3 rd year (Pappas. 2003). Obviously he was underpaid and he filed salary arbitration but Albert and the Cardinals reached a long term deal which let him sign a huge deal
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/15/2011 for the course COMM 1015 taught by Professor Dhyoung during the Spring '07 term at Virginia Tech.

Page1 / 9

Effects of not having a salary cap in MLB - Salary Cap 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online