Salary Cap -- is it time to look at an increase?

[Deleted]

I suspect the question gets tossed around here once in a while, but the following article caught my eye yesterday:

MLB average salary exceeds $3.8M

NEW YORK -- Major League Baseball's average salary shot up to more than $3.8 million this year following the steepest rise in more than a decade, putting big leaguers on track to top the $4 million barrier for the first time in 2015.



The Major League Baseball Players Association said Tuesday the average salary was $3,818,923, up from $3,386,212 last year. The 12.78 percent hike was the biggest since a 12.83 percent rise from 2000 to 2001.



Player salaries are spurting after several years of more modest gains. The increase is fueled by record revenue in the $9 billion range, much of it from national television contracts and club deals with regional sports networks.



The average topped $1 million for the first time in 1992, crossed the $2 million barrier in 2001 and the $3 million mark in 2010.



MLB's wages are a stark contrast to the economy at large. The average U.S. wage rose 1.3 percent in 2013 to $43,041, according to the Social Security Administration.



Figures are based on 910 players. The union has based its annual studies on rosters and disabled lists as of Aug. 31 -- the last day before active rosters expand from 25 per team to 40.



The commissioner's office, which uses slightly different methods, put its average at $3,726,243, an increase of 12 percent from last year's $3,326,645. MLB revised its figure Tuesday from an initial average of $3,692,123 it calculated last week.



The union did not release its annual averages for teams and positions.

I understand that the League started either with the 2009 or the 2010 season, when the average salary was around $3M and the cap was set at $100M.  There has been, I believe, one increase in cap of around $5M, or 5%, during which time the average MLB salary has increased by a third. 

The average MLB salary increase almost 13% in 2013.  I expect we'll see similar numbers in 2014 and again for this season.

I will acknowledge that an increase will help the Indians in our current situation, but we're not the only one.  I also recognize that the increase in average salary is being driven by huge deals to some UFAs.  An increase across the board will also lower the value of some Cap transfer deals.

I want to start the conversation.

[Dodgers GM]

Last year we also brought down the minimum salary to $500K from $1M. So that cleared up a bunch of cap for alot of teams. I cant see an increase anytime soon. Honestly it makes the managers have to manage their team better when they make trades etc. You always have to be aware of what you can spend now and somewhat look into the future to see where that players salary may get to.

[Arizona Diamondbacks]

I honestly don't care that much what happens with MLB salaries. I would be in favor of contracts going more and more towards TPB salaries and handling everything in house. I agree with Dodgers that it does force owners to make tough decisions and I am absolutely not in favor of bailing out guys who aren't thinking about the future.

[Deleted]

I would suggest that the idea of using TPB salaries simply would not work, until you get guys like Trout, Kershaw, Scherzer, etc, being dropped and re-bid on because no one can reasonably hope to field an actual team when 30+% of their salary cap is dedicated to one player. The thing about Dynasty Leagues is planning for the future. The thing about Major League players is that their salaries are affected as much by the CBA as by their talent. Salaries change over time: That's one of the things that is fun about this League. If we go with TPB contracts only, that would just be a recipe for disaster and confusion and would eliminate the need for prospects.

I'm not suggesting a "bail out" of a manager who did not plan ahead. An owner can easily "bail" by dumping salary just before a season begins. What I would be suggesting is some kind of reasonably predictable annual increase, to start with the 2016 season. Any professional league with a salary cap does the same.

In 2010, there were 25 players making $15.5 million, and the average salary was $3.3M.

In 2015, Yadier Molina's $15.2M is #50, meaning the number of players taking more than 1/6 of the nominal salary cap has doubled. There remain a number of players left to sign, one of whom is obviously Max Scherzer. Average salary looks like $4M, which means that a 31 man roster made up of average salaries costs $124M, or $20M (17-18%) more than the nominal Cap.

[Deleted]

MLB average = 116
TPB average = 124

I wouldn't mind being 5M ahead of MLB average because we obviously can't know what the coming year's average is going to be, but maybe that could be the rule. TPB will always be 5M average higher than the previous season's average salary. That would probably be the easiest way for everybody involved.

We haven't made this official but this was the last word

[Dodgers GM]

wow...yanks trying to play god again with the rules

[Deleted]

I'll let you know the rules committee's decision as soon as it happens

[Deleted]

So how many cap increases have there been? I thought the starting cap was 100M and there was one increase of 5M. Am I wrong on that? Was it originally 120?

[Cincinnati Reds - Chris]

Dec 29, 2014 8:54:25 GMT -5 Dodgers GM said:

Last year we also brought down the minimum salary to $500K from $1M. So that cleared up a bunch of cap for alot of teams. I cant see an increase anytime soon. Honestly it makes the managers have to manage their team better when they make trades etc. You always have to be aware of what you can spend now and somewhat look into the future to see where that players salary may get to.

Kris, I agree with you to a point. Managers will need to manage their teams better.

And as long as the majority of managers don't mind the league being loaded with TPB contracts. Because at some point managers won't be able to afford real player contracts and will be forced to drop more and more players as MLB salaries escalate.

[Dodgers GM]

So are we to give more money to teams that have willingly traded away their cap? That will just give some teams even more money to trade away again. Where does it end? More cap and smaller roster size? Makes it too easy to manage like that, might aswell make it a yahoo league if that happens.

[St. Louis Cardinals (Andrew)]

As Rays points out, we discussed it as the newly formed Rules Committee and the math showed the average MLB 40 man roster at $116M. Our average 31+5 man roster has a cap of $124M meaning we are ahead of the curve. As such, we decided not to propose an increase to Steve and Tim.

As for the past, we started at $115M, gave an extra $5M then gained an extra $100M between teams as rouge owners decided to give themselves extra cap.

[Cincinnati Reds - Chris]

I don't mind if we have TPB contracts throughout the league. I just don't want managers who are adamant about not increasing the cap, changing their minds in time, because it affects or hurts them. You either believe in something or you don't.

[Dodgers GM]

we just decreased player salaries last season to save money and are talking about possible contraction of rosters spots which would save teams even more money.

[Cincinnati Reds - Chris]

Dec 29, 2014 15:29:58 GMT -5 Dodgers GM said:

we just decreased player salaries last season to save money and are talking about possible contraction of rosters spots which would save teams even more money.

I'll believe it when I see it, as for rosters contracting.

[Arizona Diamondbacks]

I will never be in favor of adding cap to every team. I'll go ahead and put it in writing.

I see no reason why we can't allow TPB to set the market on player contracts. If you don't like what MLB is paying a guy, don't pay him that.

This may mean some restructuring of how we handle contracts but I'm okay with that

[Deleted]

Dec 29, 2014 15:55:10 GMT -5 Arizona Diamondbacks said:

I will never be in favor of adding cap to every team. I'll go ahead and put it in writing.

I see no reason why we can't allow TPB to set the market on player contracts. If you don't like what MLB is paying a guy, don't pay him that.

This may mean some restructuring of how we handle contracts but I'm okay with that

That goes against the whole league though. Do players reprice? Would we have TPB free agency? That just sounds like a huge nightmare logistically.

I think keeping TPB's average team salary 5M in front of the previous season's MLB average team salary is the best solution

[St. Louis Cardinals (Andrew)]

^^^^ tend to agree. I think we need to stay open minded and flexible.

I like salaries tight enough that the top teams are forever making tough decisions, bringing players to the free agent market to give the weaker teams the chance to pick guys up, this evening the playing field.

[Deleted]

No, because idiots like myself will trade it away and the rich will continue to get richer.

I think before considering increasing salary cap we should close the loophole that allows Cap to be used to buy players and then refund it for players 1M  or less to reuse it.

[Deleted]

I think this link may be appropriate en.m.wikipedia.org/wiki/Betteridge%27s_law_of_headlines

[Deleted]

That's just ... unnecessary.