Would the Implementation of a Salary Cap in Major League Baseball Promote Competitive Balance and Parity throughout the League?

Presenter

Timothy Bernard Sahagian

Campus

UMass Amherst

Sponsor

Muzzo Uysal, Department of Hospitality and Tourism Management, UMass Amherst

Schedule

Session 4, 2:30 PM - 3:15 PM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board A93, Campus Center Auditorium, Row 5 (A81-A100) [Poster Location Map]

Abstract

The topic of this research paper regards the current salary structure in Major League Baseball. The absence of a salary cap in the MLB distinguishes it from other major sports leagues in the U.S., sparking debates on its impact on competitive balance and parity. This research delves into the historical context of the MLB’s salary structure, contrasting it with leagues such as the NFL, NBA, and NHL. There is much debate over this topic regarding Major League Baseball, as proponents argue there is a lack of equal opportunities for teams to be successful and win a championship as result of teams having no limitations on paying players. On the other side, detractors emphasize the depth and complexities of the baseball market and the multifaceted nature of team success as reasons for disparity rather than the absence of a salary cap. With the division of opinions on whether this phenomenon works for the sport, this study will be exploring impacts and effects of the absence of a salary cap, specifically on roster management, payroll, overall team success, and financial implications on organizations and the league. Through case studies and statistical analysis, the research aims to shed light on whether the current salary structure enhances or hinders the league’s goals of competitive balance and fairness.  

Keywords

Luxury Tax, Hard/Soft cap, Replacement Level, Big/Small Market team, Payroll Systems

Research Area

Sports and Exercise Science + Physiology

SIMILAR ABSTRACTS (BY KEYWORD)