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Sports Business Entertainment Tom Gannaway January 22 2001 Restructuring Baseball As the seasons progress in major league baseball the economic structure of baseball is suffering from numerous problems which are currently allowing for the competitive balance to be less than ideal Baseball is faced with problems amongst the revenues which there teams are receiving This disparity in revenues is causing some teams to not be able to sign players that they need to compete whereas teams like the Yankees and Braves can go out and sign basically whomever they want and have payrolls which are surpassing 100 million for a season What I propose to do in order to solve the problems with baseball is to revamp the current Luxury Tax system come up with a minimum and maximum salary level and develop a revenue sharing program which will help the lesser teams out I feel that these changes will allow for baseball to be more competitive every season and would allow some small market teams not to move Baseball is in need of Restructuring due to the current d isparity amongst all the teams in terms of revenues When considering any possible changes in the baseball structure you must consider them from three different perspectives Owners of Major League Baseball teams have argued that restrictive practices are needed to ensure competitive balance Without restrictions owners argue that large market teams will simply outbid for all the available talent and leave the small market teams with the less talented players But the problem with this is that why would the owners in the big markets like Ted Turner and Rupert Murdoch who spent enormous sums of money to buy their teams in the major markets why would they ever agree to allowing the small market teams to compete for free agents with them The major league players want a free market where they can get the most money possible The other group which
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