From the Windup is FanHouse's extended look at a particular portion of America's pastime.
Salary Cap. There's not a more controversial phrase in baseball economics. The prospect of one hung over the strike of 1994 and 1995 before the owners and players managed to settle without implementing a true cap. Since then, baseball has instituted a luxury tax that acts as a sort of soft cap, but it's set high enough that it only really affects the Yankees annually, and they regard it in the same manner that a rhinoceros regards a mosquito.
For the most part, a salary cap hasn't been part of the conversation in baseball for several years. The Yankees ridiculous spending spree this winter, however, has changed things. In the days and weeks since their signings of CC Sabathia and Mark Teixeira, Brewers owner Mark Attanasio and Astros owner Drayton McLane have once again begun to call for a salary cap. They're the only two owners to have spoken directly on this issue, but it's hard to think they're alone.
A salary cap in baseball is not a simple thing. In most sports, there's only one line in labor negotiations: the line between the players and the owners. In baseball, there's actually a three-way divide between the players, the "big-market" owners (for lack of a better term), and the "small-market" owners. The MLBPA isn't the only thing that stands in the way of a cap. Some of the owners (think John Henry, the Steinbrenners, naturally, the Wilpons, Frank McCourt, Arte Moreno) would likely be opposed to one as well. After the jump, we'll look at all the obstacles and problems with implementing a cap.
