Cardura hur stor dos lagligt bestalla Flexisyn Lioresal kram kopa att kopa Acticin i sverige vad kan man kopa Crestor kopa Protonix i spanien kan man kopa Premarin i sverige kopa Diclofenac pa kanarieoarna pris Detrol apotek hjartat Oxytrol bestalla container kopa Nimotop estland kopa Levothroid i turkiet Tadalis bra pris Glucovance pris apoteket hjartat kopa Ventolin i sverige forum kopa Aleve oslo Inderal rekommenderad dos ar det lagligt att kopa Femara pa natet generisk Pamelor i sverige Zaditor kopa sverige Pletal for kvinnor pris ar det recept pa Aricept viagra Vantin kopa bestalla Styplon pa natet kopa Nolvadex i stockholm kopa Tretinoin mot faktura kop Xeloda utan recept Digoxin gel pa recept svart att fa recept pa Phenergan bestalla Calcium Carbonate utan recept rekommenderad dos Speman var kan man kopa akta Triamterene vart kan man bestalla Atorlip-20 billig Zithromax sverige Penegra kopa jord vill kopa Avodart Nolvadex pris pa gatan kopa Levothroid pa teneriffa kopa Dostinex estland kan man kopa Singulair pa apotek kan man kopa Naltrexone pa mallorca kopa Ciplox internet dosering Serevent k Haldol vilken dos att kopa Lopressor kopa generisk Flexisyn Elimite kopa Cozaar pa apoteket pris kopa Evecare online 2013 kopa Cafergot 50mg flytande Rosuvastatin dosering kopa Singulair i butik stockholm kan man kopa Brahmi pa teneriffa Fucidin utan recept kopa Amaryl pa cypern Amantadine uttag pris Roxithromycin 100 billig Malegra kapslar pris kopa Saw Palmetto inom eu Zyban jelly kopa kopa Cipro pa ica vill kopa Purim kopa Clomid online sverige kopa Olanzapine i turkiet bestalla Erexin-V utan recept Feldene pa recept kopa Styplon online sverige kopa Ampicillin i tallin kopa Aricept i indien olagligt att bestalla Lipothin olagligt att bestalla Endep kan man kopa Finax pa teneriffa Minocin mot angest dos kopa Requip online kopa Fosamax sakert pa natet lagligt att bestalla Diakof pa natet pris pa Avodart sverige Ashwagandha dosering vuxna kopa Naltrexone online kan man kopa Aristocort i usa kopa Avodart i danmark kopa Rocaltrol for kvinnor lagligt att kopa Provera bestalla Vasodilan online flashback kopa Prazosin pa kanarieoarna var kan man kopa Duphalac pa natet Betapace pris apotek sverige pris pa Zocor sverige kan man kopa Tetracycline i usa kopa Cabgolin estland Duetact dosering foredrag pris pa Epivir-HBV pa apoteket Mycelex-g kram pris forsaljning Alavert Benadryl hog dos Minomycin rapid recept bestalla Allegra for kvinnor Paxil pris i sverige Cytoxan billig kopa Lasix pa natet sverige kopa billigt Beconase AQ Atorlip-20 pris apotek sverige kopa Kytril online 2013 var kopa Famvir pa natet Duphalac dosering angest viagra Aldactone kopa kan man kopa Geriforte pa apoteket ar det lagligt att kopa Aciclovir kopa Diltiazem original var kopa Confido pa natet kopa Cymbalta billigt sakra sidor att kopa Lasuna bestalla Tulasi online flashback Triamcinolone online utan recept Kamagra dos forsta gangen basta stallet att kopa Risperdal Imitrex lag dos pris pa Plaquenil pa apoteket kan man kopa Lady era pa apoteket utan recept kan man kopa Nootropil i spanien dodlig dos av Ralista bestalla Calan sverige recept for Serevent olagligt att bestalla Yasmin pa natet forsaljning NPXL apotekets pris pa Remeron behovs recept for Zyban Aristocort snabb leverans bestalla Metoclopramide i sverige kopa Septilin pa kanarieoarna Clonidine kram kopa kopa Zaditor teneriffa kopa generisk Entocort i sverige recept for Evista Aciphex bestalla kopa Augmentin i tallinn kopa Baclofen pa rhodos kopa Entocort i apoteket kan man kopa Tegretol i danmark sakert stalle att kopa Bupron SR kopa Zovirax tyskland kopa Prinivil pa mallorca Brahmi bestalla kopa Venlor i helsingborg bestalla hem Nicotinell Bupron SR till katt dosering Hytrin gel pa recept kopa Tinidazole receptfritt Coumadin kapslar pris Mentat nervositet dosering dodlig dos av Fertomid kopa Amitriptyline egypten kopa Singulair sverige 2012 kan man kopa Tetracycline pa gran canaria kopa Ponstel duo kan man kopa Hydrochlorothiazide i thailand bestalla Antivert pa natet lagligt var kopa Hytrin flashback bestalla Levothroid pa natet flashback Betnovate dosering till katt behovs recept for Celadrin i spanien kopa Lioresal orifarm bestalla Bonnispaz kan man kopa Epivir-HBV i sverige kopa Casodex i egypten kopa eljo Femcare kan man kopa Shuddha pa apoteket Vytorin utan recept spanien Lynoral dos migran kopa Rosuvastatin i tyskland Arcoxia utan recept Toradol pa natet utan recept kopa Micardis i turkiet vilka lander kan man kopa FML Forte receptfritt bestalla Erexor fran thailand Prazosin dosering vuxna Anafranil bestalla bra stalle o kopa Cytotec kopa Paroxetine pa kanarieoarna vill du kopa Compazine Zetia gel pris apoteket Mobic lagre pris Rocaltrol utan recept spanien hur bestalla Toprol Ampicillin 100 billig bestalla Urispas pa natet lagligt kopa generisk Roxithromycin online pasteta od Kytril recept kopa Effexor pa gran canaria Bupropion mot nervositet dos vad kan man kopa Diflucan lagre pris pa Lincocin Provera strombrytare pris kan man kopa Anacin pa ica kopa Lincocin pa apotek bestalla Sinemet pa natet lagligt kopa Seroflo i indien Depakote kram pris kan man kopa Micardis pa apoteket utan recept kopa concerta Minomycin billig Yasmin pa natet kopa Dramamine i italien kopa Lariam online lagligt i vilka lander kan man kopa Oxytrol receptfritt kopa Xalatan pa kreta bestalla Fosamax pulver Sinequan gel recept kan man kopa Azulfidine pa apoteket kan man kopa Torsemide receptfritt i danmark snabb leverans Ralista vaga kopa Dilantin pa natet bestalla Panmycin fran thailand kopa Mestinon i london kopa Zantac orifarm kopa Himcolin bangkok apoteket hjartat Nolvadex pris kopa Mestinon i bulgarien kopa Risperdal pa natet lagligt Erexor recept kopa Noroxin pa kreta kopa Sildalis i phuket billig Avalide pa natet kan man kopa Aristocort i kroatien kopa riktig Crestor kopa Nexium gel kopa kvinnlig Amoxil Gasex tabletter pris sverige kopa Digoxin thailand kan man kopa Renagel pa teneriffa pris Serevent sverige Mircette bestalla container kopa laglig Atorlip-10 Erexin-V shampoo kopa dodlig dos Mycelex-g var kopa Serevent kopa Seroquel seriost Evista utan recept i sverige kopa Avapro i tallin hur kopa Cefadroxil generisk Cozaar snabb leverans Atorlip-10 kopa jord kopa Finax 10 mg kan man kopa Methotrexate i turkiet var kopa Cholestoplex pa natet kopa eljo Dramamine var ska man kopa Bupropion lagligt kopa Risperdal saker sida att kopa Eldepryl bestalla Effexor fran thailand svart att fa recept pa Seroquel apoteket hjartat Wellbutrin pris kopa Mentat 2013 Yougara dodlig dos bestalla Liponexol for kvinnor kop generisk Sinequan kopa Lozol kram kan man kopa Acticin pa gran canaria kopa Panmycin i butik stockholm kopa Allopurinol tabletter kopa Calcium Carbonate i norge kopa akta Vasotec pa natet kopa Lanoxin oslo kopa Ashwagandha flashback 2015 kan man kopa Promethazine i italien kopa Fluoxetine over disk kopa Maxalt pa teneriffa kopa Diovan pa mallorca bestalla Lukol pa natet kop generisk Toradol olagligt att kopa Sominex kan man kopa Cephalexin i sverige Robaxin kram kopa behovs recept for Calcium Carbonate Apcalis vet dosering kopa Feldene orifarm lagligt att bestalla Aricept pa natet kopa Keflex i filippinerna behovs recept for Topamax bestalla Compazine england kopa jord Nolvadex kopa concerta Clindamycin kopa Atorlip-20 i tallinn kopa Tadacip barcelona pris Zetia pa apoteket kopa Coumadin i spanien Doxycycline tabletter pris sverige Bentyl tabletter pris sverige eljo Tadapox basta pris dosering Aldactone till hund vart kan jag kopa Liponexol kopa billigt Differin kopa Top Avana i sverige vad ar generisk Deltasone saker sida att kopa Finax kan man kopa Atorlip-5 i sverige hur far man Crestor pa recept kan man kopa Dipyridamole i kroatien Evista vagguttag pris kopa riktig NPXL kopa Zovirax pa faktura kan man kopa Inderal pa mallorca lagligt att bestalla Allopurinol pa natet ar det olagligt att kopa Crestor pa natet bestalla Serophene pa internet Rogaine 5 dosering vuxen kopa Phexin flashback 2013 kopa Confido alanya bestalla Procardia online flashback vart ska man kopa Risperdal Proscar till hund dosering kopa Propecia utan recept kopa concerta Cyklokapron kopa Reminyl pa natet olagligt var kan man kopa Charboleps receptfritt ar det olagligt att bestalla Avapro Seroquel basta pris kopa Albendazole i thailand forsaljning av Zanaflex kopa Mycelex-g danmark viagra Advair kopa pris Trandate turkiet Levlen vilken dos Zyrtec online utan recept apoteket hjartat Clarina pris kopa Advair lagligt kopa Lariam pa rhodos Emsam recept kopa Renagel gel kopa Augmentin danmark kopa Prandin i riga vad kan man kopa Prevacid vad ar generisk Sominex Pariet med snabb leverans var kan man kopa Buspar duo pris for Prazosin Mestinon migran dos billig Speman pa natet Himcocid rapid recept kopa Benicar spanien kopa Paroxetine inom sverige Mentat dosering till katt hur kan man kopa Lipitor kopa Tamoxifen 400 mg forsaljning Grifulvin V Indinavir hog dos kopa Doxycycline i grekland Nootropil pris pa gatan kopa Periactin i danmark kopa Rumalaya flashback 2015 bestalla container Differin kan man kopa Proventil i frankrike vill kopa Rogaine 5 kopa Mestinon i vietnam kopa Naltrexone i eu var kan man kopa Celebrex receptfritt Atorlip-10 hexal kopa generisk Atorlip-10 i sverige bestalla Nicotinell for kvinnor skaffa recept till Atorlip-5 vad kan man kopa Probalan kopa Dapoxetine pa rhodos Liv 52 tabletter pris sverige bestalla Tamoxifen i sverige kan man kopa Zyloprim pa gran canaria Kemadrin vilken dos kopa Noroxin sakert pa natet var kopa Tofranil flashback Cephalexin pulver kopa hur kopa Sinemet kan man kopa Beconase AQ spanien kopa Cardura apoteket Zestoretic pa recept kop Trial Erection packs snabb leverans sankt pris Arimidex bestalla Epivir-HBV till sverige Copegus hur stor dos kopa Differin i egypten kopa Panmycin sakert Citalopram gel pa recept kan man kopa Diakof i spanien vart bestalla Lotrisone bestalla Penegra jelly kopa Plavix grekland flytande Albenza dos pris pa Metoclopramide i turkiet kopa Lioresal kopenhamn kan man kopa Geriforte i italien kopa Requip i frankrike ar generisk Zofran farligt Prilosec jelly snabb leverans kopa Lipitor over disk Grifulvin V kram kopa kopa billig Doxycycline kan man kopa Hoodia pa apoteket kopa Anacin 400 mg kopa Tamoxifen online 2013 kan man kopa Claritin i england kopa Requip duo kopa Xeloda utomlands kopa Tadalis pa internet Top Avana lag dos kan man kopa Singulair i england kopa Micronase tjeckien svart att fa recept pa Diakof ar det olagligt att kopa Topamax pa natet kan man kopa Cafergot i frankrike dosering Exelon till hund Shatavari dosering forsta gangen basta sidan att kopa Nizagara kopa Duphalac i italien generisk Antabuse i sverige kopa Sinemet att kopa Betnovate farligt kopa Sumycin pa natet Charboleps dosering migran kopa Keppra grekland kopa Nasonex i kina lagligt att bestalla Skelaxin pa natet kopa Apcalis polen Dutas dos migran bestalla Benzac flashback kopa Keppra pa teneriffa bestalla Metformin till sverige Celadrin for kvinnor pris var kopa Cialis billigt kopa Amaryl pa postforskott kopa Rogaine 5 online lagligt var ska man kopa Renagel kopa Mycelex-g apotek kopa Differin i kina kopa jord Pariet Proscar oral losning pris Calan eljo pris generisk Imdur biverkningar Torsemide billig kopa Celadrin pa gran canaria snabb leverans Bactroban eljo Lamictal pris kopa eljo Celexa kan man kopa Inderal i sverige kopa Zenegra pa faktura kopa Albendazole i goteborg Acticin i sverige utan recept Diarex och traning dosering lagsta pris pa Ditropan Lasuna och traning dosering pris Lotensin apotek hjartat kopa Colchicine pa mallorca kopa Tricor pa natet olagligt kopa Tadalis flashback bestalla hem Claritin kopa Nicotinell online 2012 bestalla Ginseng online generisk Probalan sverige lagligt bestalla Cabgolin kan man kopa Aciclovir i frankrike Ginseng utan recept kopa Requip tallinn lagligt bestalla Zenegra Celadrin tabletter pris sverige hur kopa Renagel kopa Shatavari i norge kopa Olanzapine 10mg kopa Amitriptyline i grekland kopa Rumalaya inom eu pris for Bonnispaz dosering Zithromax till hund kopa Erexin-V seriost bestalla Lamisil pulver basta stallet att kopa Dapoxetine pa pris for Skelaxin bestalla Ayurslim till sverige kopa Aciclovir over disk kopa Abana rhodos kopa Combivent pa faktura kopa Tricor snabb leverans kan man kopa Aldactone pa ica Peni Large i sverige utan recept kopa Aciclovir i lettland kopa Precose online sverige bestalla billig Torsemide kopa Alesse turkiet Aygestin dosering somn V-gel pris sverige kopa generisk Myambutol online pris pa Lotensin i turkiet Keftab utan recept i sverige Actonel basta pris kopa Nootropil pa ica kopa Dilantin sakert online kopa Lopressor pa apotek kopa Isoniazid i tallin Deltasone utan recept i sverige kopa Dilantin i butik kopa Cyklokapron inom eu apoteket Cleocin pris kopa Synthroid i tyskland olagligt att bestalla Depakote pa natet kopa Mentat spanien
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Solving Baseball's Financial Inequities PDF Print E-mail
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Articles & Opinion
Written by Adam Holzman   
Tuesday, 15 April 2008 19:54

A Biz of Baseball OriginalThe following is a guest article by Adam Holzman.

Since the introduction of free agency in the mid-1970s, the salaries of Major League Baseball players have risen without limit. The abolishment of the reserve clause, which bound a player to his original team for the duration of his career (barring a trade), forced MLB owners to compete with each other in attracting premier players to play for their teams, driving up player salaries. As a result, many small market teams find it difficult to compete in a market where large market teams can offer substantially larger sums of money to free agents. While the reserve clause unfairly restricted the salaries of MLB players, free agency has threatened the competitive balance of the game. However, is a salary cap an appropriate solution to create balance in the playing field?

Certainly, small market teams are disadvantaged in the free agency market. In Moneyball: The Art of Winning an Unfair Game, author Michael Lewis explains how Doug Pappas, the late, great sabermatrician, measures the quality of a team’s front office by determining the team’s “marginal wins” (all wins above the 49th) and “marginal salary” (all payroll dollars spent above $7 million). Dividing marginal wins by marginal salary gives the team’s financial efficiency for a given year. From 2005 through 2007, the median financial efficiency for MLB teams was $2,265,414.99 per marginal win. In 2007, the minimum number of wins needed to make the playoffs in the American League in 2007 was 94, or 45 marginal wins. (see a detailed breakdown of the 2007 Marginal Wins/Marginal Payroll here on The Biz of Baseball). Therefore, a team operating at the average efficiency level would have had to commit to a marginal payroll of $101,943,674.60, or a total payroll of $108,943,674.60. Since most small market teams cannot afford to spend this much on payroll, the general managers of these teams are forced to find ways to operate at higher levels of efficiency in order to compete with large market teams. Clearly, small market teams have an inherent disadvantage in free agency.

Select Read More to see the rest of this orginal article.

However, before we declare that a salary cap is a viable measure to fix the problem of competitive balance, we must consider its feasibility and its consequences. Firstly, the hope that a salary cap will be implemented in the near future is unreasonable. Not only would large market teams be reluctant to concede their financial advantage in the free agency market, but the Major League Baseball Players’ Association (MLBPA), the most powerful union in America, would not accept any measure that would decrease the amount of money being spent on player salaries. If the commissioner’s office were to attempt to install a salary cap, the decision would almost certainly be followed by the most prolonged strike in the history of major league sports.

In addition, the question must be asked: would a salary cap actually provide us with a more entertaining league? In the NFL (which has a salary cap), team quality fluctuates drastically from year to year, and the final standings of each season are almost impossible to predict. I may be in the minority, but I find a league with a greater degree of continuity to be much more entertaining. To me, one of the most appealing aspects of being a fan of a certain team is being able to watch the front office construct a contender or a dynasty from a previously hopeless club. I worry that a strict salary cap, while fixing the problem of competitive balance, would create too much parity throughout the league.

A stronger luxury tax system is most likely the best possible available method for leveling the playing field among large market and small market teams. While large market teams will still have the option to spend higher amounts of revenue on payroll, they will be taxed a certain percentage of their total payroll. This tax revenue will then be distributed amongst teams that do not surpass a predetermined payroll threshold.

However, out of this system of revenue redistribution arises another question: how can MLB administration prevent the owners of small market teams from pocketing the redistributed funds and refusing to spend it on payroll? Contrary to conventional wisdom, an owner’s ultimate goal is not necessarily to construct a winning team, but to make a profit. Because these two goals often go hand in hand (winning teams should increase team popularity and, therefore, team revenues), the distinction is sometimes overlooked.

One must consider the incentives presented to small market team owners in producing winning teams. When a small market team competes with a large market team for a high profile free agent, the small market team would inevitably have to spend a higher percentage of its total revenue in order to win the players’ services. Even if the small market owner decides to make this financial commitment, the financial returns on his investment will be less than what they would have been for the large market team. For argument’s sake, let’s assume that whichever team signs a certain high profile free agent will receive attention from an additional 2% of the team’s metropolitan area. In other words, 2% of the area’s population who previously could’ve cared less about the team now begins to spend money on tickets, jerseys, etc, because of the attraction of the newly-signed player. For a team in New York, this would signal an increase of about 376,370 local fans (2% of 18,818,536 total people in the metropolitan area), while, in Milwaukee, the team would receive increased revenues from only 30,200 additional fans (2% of 1,509,981 total people). If I am the owner of a small market team, why would I invest a greater percentage of my revenues in a player that will produce less increased revenue for my team than he would for a large market team? Small market owners, such as those of the Florida Marlins, are often criticized for a lack of commitment to producing a winning team, but, in reality, there is a lesser amount of financial incentive for the Marlins’ ownership to construct a winner than there is for large market teams.

The solution to the problem produced by the incentive disparity is twofold. Firstly, in addition to the luxury tax threshold described above, a salary “floor” should be implemented. Teams with payrolls below this floor would not be eligible to receive the redistributed luxury tax revenues, creating an incentive for stingy owners to spend more money on payroll. Secondly, the redistributed revenue should act less like a donation and more like an interest free loan. If the owners do not spend the added funds on team payroll by the end of the season, the money will be returned to the commissioner’s office. In other words, if a team receives $8 million in redistributed funds but only spends $5 million on payroll, the owner of the team will not be allowed to retain the extra $3 million. This removes any incentives that small market owners have to restrict team payroll. As a result of this plan, small market teams should become more financially competitive in the free agency market relative to large market teams.

Most importantly, the MLBPA would not be opposed to this plan. While an NFL-style salary cap would reduce the total amount of money spent on player salaries, the luxury tax plan may, in fact, promote increased spending on payroll. Although the ability of large market teams to agree to astronomical contracts would be restricted, small market teams would simultaneously begin to commit more money to team payroll. Because more teams would have a legitimate chance to sign high priced free agents, the competition among owners to sign such free agents would increase. Such competition would increase the negotiating leverage of the players, naturally driving up player salaries. All things considered, this luxury tax system appears to fix the problem of competitive balance between large market and small market teams, preserve the ability of a team to produce a consistent contender, and satisfy the MLBPA’s demands. I doubt that a salary cap would have the same level of success. 


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Adam Holzman is a senior at Amity Regional High School in Woodbridge, CT., and is a guest contributor to the Business of Sports Network. He will be attending Yale University in the fall.  

 
 
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