The proposed upper limit is between $260 million and $280 million, and the proposed lower limit is between $140 million and $160 million. There are currently five teams above the top quadrant of the proposed cap and 11 below the bottom quadrant. This is probably the biggest issue that needs to be addressed when discussing the proposed limits.
It’s unfair to expect a team to overhaul a roster they’ve already built in a year to get within the cap. A transition period is necessary for your team to achieve its goals. Maybe a rule could be put in place to prevent teams from signing more contracts if they exceed a certain amount.
MLB could introduce a second version of the apron. In the NBA, teams are penalized with stiff tax penalties if they’re on the second apron, can’t make deals that add up contracts, can move first-round picks to the end of the draft, and can only sign players at the veteran minimum.
Most of these penalties will not occur in the first year the cap is implemented, but they could immediately force teams that exceed the cap to no longer be able to offer free agent contracts other than the veteran minimum or minor league deals.
Another large-scale issue that needs to be addressed is contract delays. The most obvious solution is to limit the amount of time or amount that can be postponed for each contract. Unfortunately, teams like the Dodgers have billions of dollars in delinquent money on their books, so I’m not sure how they can fix that. These contracts are ruining baseball, but they might just have to be approved.
Another key factor is a team that is well below their salary level. Cleveland and Miami’s current rosters make less than half the minimum salary. I wonder if most of the team’s contracts need to be restructured, or if it’s possible to swing the contracts of teams over the cap so both sides are in compliance with the rules.
Another issue with speeding is that many players believe the cap limits the potential revenue for the entire league. I completely disagree with that sentiment. The days of players receiving $750 million over 10 years may be over, but the bottom half of the league could see some very nice salary increases as teams try to increase the salary cap.
Another issue has to do with cap rates. In the NFL and NBA, the cap floor is 90% of the cap ceiling. Owners would never allow numbers that high, but players probably like it because it forces every team to have at least one “max contract.”
Implementing a cap will be a difficult process and both sides will face challenges, but it is necessary to maintain competitive balance in the league.
