In Major League Baseball, one thing is certain: franchise owners will periodically push for a salary cap. With financial issues again making headlines—highlighted by Juan Soto’s record-breaking contract, the Los Angeles Dodgers’ free-spending ways, and many other teams avoiding the free agent market—this request seemed inevitable.
As expected, Baltimore Orioles owner David Rubenstein expressed his desire for salary constraints last Friday. Speaking at the World Economic Forum, he said, “I wish we had a salary cap in baseball like other sports do, and maybe one day we will, but it’s not the case now. I suspect we might get something similar to the NFL or NBA, but there’s no guarantee.”
It’s not shocking when an owner calls for a salary cap, which limits player salaries, even if proponents argue it boosts competitive balance. However, research by YES Network’s James Smyth points out that MLB actually has more parity than leagues with salary caps. Since 2000, MLB has seen more teams win championships than the NFL, NBA, or NHL. In terms of teams reaching the championship round since 2010, only the NHL has had more.
While financial disparities exist between teams, particularly with local TV rights issues, salary caps aren’t necessarily the solution for competitive balance. MLB’s parity may be stronger than other leagues with caps. Thus, it’s important to be skeptical when owners—who stand to benefit from salary restrictions—call for them.
For context, Rubenstein’s Orioles are currently 15th in projected luxury tax payroll, with a forecasted $156 million Opening Day payroll, the second-highest in franchise history.
As for the possibility of a salary cap being introduced during the next collective bargaining agreement talks, MLB Players Association head Tony Clark shut it down in 2023, saying, “We’re never going to agree to a cap.”
This debate has been ongoing since free agency began, with the MLBPA successfully opposing a formal salary cap since Marvin Miller’s tenure. Recently, owners have adhered to an unofficial cap through the Competitive Balance Tax, though that doesn’t mean the union would support an official cap.
In the end, one thing remains certain: another owner will soon call for a salary cap in MLB.
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