Author Topic: FM poll: should every team have the same payroll  (Read 659 times)

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Re: FM poll: should every team have the same payroll
« Reply #15 on: 11 Jan 2019 9:45:28 AM »
I'm not necessarily saying we should go for it. I'm just honestly curious why you assume that salaries will come down (either for all FAs or just for the newly-released FAs) if we make a financial change that distributes revenue differently but does not change the total amount of money available to be spent. If there is $1B to spend and 100 WAR to buy, seems like 1 WAR = $10M no matter how that $1B is distributed.

My biggest concern with the "let high-revenue teams release expensive players" approach is that it won't affect all high-revenue teams equally. Teams with albatross contracts will get a bigger benefit than teams with expensive-but-valuable players taking up a bunch of payroll.

That's not the end of the world, but I think it's avoidable, either by scaling down salaries or simply by phasing in revenue changes over a few years instead of all at once to give teams enough time to adjust.

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Re: FM poll: should every team have the same payroll
« Reply #16 on: 11 Jan 2019 10:13:27 AM »
As one of the four teams involved in this discussion I lose over $100 M in contracts at the end of the year so you can easily say three teams.

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Re: FM poll: should every team have the same payroll
« Reply #17 on: 11 Jan 2019 10:18:28 AM »
As for the other three teams they each have over $20 M coming off the books at the end of the year.

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Re: FM poll: should every team have the same payroll
« Reply #18 on: 11 Jan 2019 10:20:55 AM »
Assuming the question was posed to me, I'll respond.  The current structure supports the approach that some teams can afford to be built based on a sizeable amount of capital and others less so.  If Team A has a $185M payroll and Team B one at $100M, once a cap of $138M is uniformly applied one has a $38M surplus to spend, while the other is forced to jettison salary in order to meet the new spending limit.

Spread league wide, there would be multiple Team A's and likewise more than one Team B.  The principles of supply and demand would bring about an impact I don't embrace.  Teams which had likely struggled to get down to the new cap would be understandably less apt to pursue more salary debt they now can no longer afford, thus feeding the concept of less demand.  Those players released through an amnesty process would now be bid upon by a lesser number of teams somewhat becoming a glut of supply, which in a capitalist world generally results in reduced cost.

Is any of this the end of the world?  Absolutely not!  Does this in any way resemble reality?  Same answer. 

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Re: FM poll: should every team have the same payroll
« Reply #19 on: 11 Jan 2019 10:23:00 AM »
To be fair to the Yankees and Red Sox they each have a multi-year contract over $40 M. Those contracts would have to be adjusted to a reasonable number where they could their guy .

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Re: FM poll: should every team have the same payroll
« Reply #20 on: 11 Jan 2019 12:07:01 PM »
Assuming the question was posed to me, I'll respond.  The current structure supports the approach that some teams can afford to be built based on a sizeable amount of capital and others less so.  If Team A has a $185M payroll and Team B one at $100M, once a cap of $138M is uniformly applied one has a $38M surplus to spend, while the other is forced to jettison salary in order to meet the new spending limit.

Spread league wide, there would be multiple Team A's and likewise more than one Team B.  The principles of supply and demand would bring about an impact I don't embrace.  Teams which had likely struggled to get down to the new cap would be understandably less apt to pursue more salary debt they now can no longer afford, thus feeding the concept of less demand.  Those players released through an amnesty process would now be bid upon by a lesser number of teams somewhat becoming a glut of supply, which in a capitalist world generally results in reduced cost.

"Some teams will see reduced demand" is not the same as "Total demand will be reduced." There would be less demand from Team As but *more* demand from Team Bs. I see no reason to think all of that doesn't even out.

And as Team As release players, they increase their own demand (both in terms of payroll space and in terms of their need for productive players) at the same time they increase supply. That may not even out specifically because Team As have an incentive to release overpaid players and find a way to keep or trade underpaid players, but it's still a mitigating factor.

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Re: FM poll: should every team have the same payroll
« Reply #21 on: 11 Jan 2019 12:15:54 PM »
Put more simply:

The "principles of supply and demand" dictate that the price of commodity is determined by the total supply and total demand. How that demand is distributed is irrelevant, as long as you don't have anyone in a monopsony (single/dominant purchaser) situation.

Moving money from one team to another does not change the total demand. It does not create a monopsony. It should have no impact on price.

Removing one fairly-priced player from a roster changes total supply and total demand by the same amount. it should have no impact on price.

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Re: FM poll: should every team have the same payroll
« Reply #22 on: 11 Jan 2019 1:07:16 PM »
Put more simply:

The "principles of supply and demand" dictate that the price of commodity is determined by the total supply and total demand. How that demand is distributed is irrelevant, as long as you don't have anyone in a monopsony (single/dominant purchaser) situation.

Moving money from one team to another does not change the total demand. It does not create a monopsony. It should have no impact on price.

Removing one fairly-priced player from a roster changes total supply and total demand by the same amount. it should have no impact on price.

"why am I getting flashbacks to an economics class I took in college in the late 70's LOL

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Re: FM poll: should every team have the same payroll
« Reply #23 on: 11 Jan 2019 1:34:50 PM »
I don't think any team would feel a crunch if we implanted a 138 Million dollar payroll, and allowed a few teams "outs" by dumping a few bad contracts. Since basically....what we would be doing....would be killing the money we all have available at the beginning of the season. ( we all have a ludicrous amount right now)

If we allowed a certain number of "outs" per team, to reorganize their roster, we might actually do the league more long term good than damage, because it may allow them to compete quicker.
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Re: FM poll: should every team have the same payroll
« Reply #24 on: 11 Jan 2019 5:50:46 PM »
(we all have a ludicrous amount right now)

Agreed. My available cash for free agency isn't even none figures. Ludicrous!

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Re: FM poll: should every team have the same payroll
« Reply #25 on: 11 Jan 2019 6:28:56 PM »
Anyone that has the numbers at finger tip, how much more ludicrous is the financial total in DMBO than MLB? 

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Re: FM poll: should every team have the same payroll
« Reply #26 on: 11 Jan 2019 6:58:18 PM »
If it's a matter of teams having too much money, why not apply an arbitrary 15-25% reduction evenly across the board?

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Re: FM poll: should every team have the same payroll
« Reply #27 on: 11 Jan 2019 7:01:34 PM »
Anyone that has the numbers at finger tip, how much more ludicrous is the financial total in DMBO than MLB?

Total DMBO payroll for 2019 is equal to the 2018 opening day payroll total in MLB. So we usually have slightly less cash in a given season than is actually used in MLB during that season.

Scot.
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Re: FM poll: should every team have the same payroll
« Reply #28 on: 11 Jan 2019 8:32:48 PM »
I wasn't  actually even referring to payroll, I was referring to the money we have left to spend right now in Free Agency...

That's all post payroll money....


The Yankees spending money right now, is bigger than any total payroll I've ever had, and he doesn't even have the most.
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Re: FM poll: should every team have the same payroll
« Reply #29 on: 11 Jan 2019 8:38:49 PM »
I wasn't  actually even referring to payroll, I was referring to the money we have left to spend right now in Free Agency...

That's all post payroll money....


The Yankees spending money right now, is bigger than any total payroll I've ever had, and he doesn't even have the most.

I think the main reason we tend to have so much to spend in FA is because our FA setup reduces the cost of all but the very top FAs. Our pre-arb and arb salaries are in-line with MLB, by design. Our LTC salaries are a little low, but not too far out of whack. Our very top FAs get close to or slightly above what they get in MLB. But the tier 2 mechanism results in a lot of the FA middle class and below getting signed for way less than they do IRL; that adds up over time.

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