j_d_mcnugent wrote:a hard cap does one thing and one thing only---line the owner's pockets.
a salary cap isnt going to lower ticket prices. ticket prices are set by market demand. the teams with the highest ticket prices are also the teams with the best attendance so the market clearly supports those prices. in addition, rampant ticket scalping in some areas means those teams could further increase ticket prices without ill effect. ticket prices arent tied to payroll, they are set to maximize profits.
i am not so sure a salary cap would directly lead to more competitive balance either. as we've seen, payroll has a low correlation to playoff success. there have been teams that spend a ton and go no where (like the mets of a few years ago) and teams that are at the lower/middle end of the payroll spectrum win the WS or make the playoffs. all the money in the world isnt going to help you win if you are just going to spend it on mo vaughn or carl pavano.
there are really more complex issues at play here. revenue sharing might need to be revamped a little bit. teams should be required to spend that money on the team in some capacity (scouting, stadium, payroll, whatever...as long as it doesnt end up in an owner's pocket). maybe the draft should be changed as well. baseball isnt like the other sports in that regard. if you have a top five pick in basketball or football you are almost always going to get a productive player. the odds are much less in baseball. it also takes several more years to see those players play in the major leagues. they should make foreign players go through the draft or award extra draft picks to the bottom teams. if you want more balance in the league i think a hard cap is the wrong way to go about it.
Correct, back in college i took a sports economics class and here's what they said about ticket prices and team salary.
Ticket prices are tied to marginal costs (the cost to the supplier of providing each additional unit of service).
Since contracts in baseball are garenteed, they are fixed costs.
No matter how many units the team provides (people they let in the stadium) they still have to pay the players salary. Therefore teams will set ticket prices where marginal cost meets marginal revenue. And salary is not taken into account in that equation.
This is pretty simple economics, but it is easier to understand if you have had at least an intro mirco course and if there are graphs.
Here is baseball prospect's attempt to explain it to lay people.
"I do not think baseball of today is any better than it was 30 years ago... I still think Radbourne is the greatest of the pitchers." John Sullivan 1914-Old athletes never change.