State of the Game: Parity in Major League Baseball

As of September 15, 5 of the 6 current division leaders are among the 8 highest payrolls in the game. If you step back to include playoff teams, 6 of the 8 current playoff teams are teams among the highest 8 payrolls in the game . The only exceptions to this are the St. Louis Cardinals (13th) and the NL wild card leaders Colorodo (21st). For the full list of team payrolls, take a look here.

The Yankees have the highest payroll in all of baseball at a staggering $206,811,689. This is almost $70M more than the next closest payroll, their injured and underperforming New York counterparts, the Mets. The Yankees' juggernaut team currently features the following:

• 4 of the 5 most lucrative total value contracts in baseball history (A-Rod, Jeter, Sabathia & Tiexiera);
• The highest average annual value salary (AAV) for a starting pitcher in baseball history and 6th highest (Sabathia, Burnett);
• The highest AAV salary for a relief pitcher in baseball history (Rivera);
• The highest AAV salary for a catcher in baseball history (Posada);
• The highest AAV salary for a 1B in baseball history (Tiexiera);
• The 3rd highest AAV salary for a 2B in baseball history (Cano);
• The highest AAV salary for a SS in baseball history (Jeter); and
• The highest AAV salary for a 3B in baseball history (Rodriguez).

If anything, it looks like the Yankee outfielders are underpaid. With 4/5 of an infield and a pitcher all being the highest paid at their position in history, it would be a stretch to argue that the Yankees haven't flexed their financial muscle to buy the best players money can buy (or at least what they perceive as the best players). In 2009, this strategy appears to be paying off (pun intended) as the Yankees have the best team in all of baseball by 6 games over the Angels.

Based on the above, it should be easy to argue that baseball needs to institute a type of salary cap. Something--anything--to fix what is a broken model for financial might translating to on the field dominance. MLB is the only major sport (NFL, NBA, NHL) without a salary cap. So, with this seemingly insurmountable evidence, why isn't anything beind done? Well, as the saying goes, don't fix it if it ain't broke.

Sure, it looks as though the teams with the highest payrolls are the most competitive, but MLB features a greater parity than either the NFL or NBA. Since the turn of the century, there have been 9 World Series played between the NL and the AL. There have been 8 different World Series Champions (Red Sox 2, Yankees, Cardinals, Marlins, White Sox, Angels, Diamondbacks and Phillies) and a total of 14 different teams reached the WS. Going all the way back to the 1998-99 season, there have only been 5 NBA champs (Lakers 4, Spurs 4, Pistons, Heat and Celtics) with 12 different teams reaching the Finals. And, in the NFL, 6 teams since 2000 have won the Super Bowl (New England 3, Pittsburgh 2, Baltimore, Tampa Bay, Indianapolis and NYG) while 14 teams have played in the big dance. So what's the big deal?

There is at least as much, if not more, parity in MLB as their is in the NFL or NBA. Salary caps sure didn't stop the Lakers and Spurs from being the two most dominant teams of the decade. Name the most dominant baseball team from this decade (Yankees). How many championships have they won? 1.

Further, at the beginning of the baseball season there are far more teams that are considered to be legitimate World Series contenders than any other sport. Teams this year in MLB that were thought to have a legitimate chance to win their division (in no particular order):

1. Red Sox
2. Yankees
3. Rays
4. Dodgers
5. Phillies
6. Mets
7. Angels
8. Tigers
9. Twins
10. White Sox
11. Indians
12. Rockies
13. Marlins
14. Cubs
15. Cardinals
16. Diamondbacks

That is 50% of the league thought to have a legitimate chance during spring training to make a run for their division title. This list even leaves out the Texas Rangers and the SF Giants, two teams making a run at the playoffs via the wild card. Once in the playoffs, in a short series format, any team can make a run with dominant pitching and some timely hitting (see the 2006 St. Louis Cardinals, an 83 win team during the regular season).

Does this even compare to the other major sports? Are their more than 5 or 6 (out of 30) teams every year that are picked to be title contenders in the NBA? Not realistically. In the NFL this year, there are maybe 10-12 (out of 32) teams that could win the Super Bowl. Even if there is a surprise or sleeper team to make the playoffs (see Miami Dolphins of last year) no one gives them even the slightest chance to win a Super Bowl. You might argue for the Cardinals of last year, but look at their roster. 2 of the most talented wide receivers in the game and a league MVP, Super Bowl champion QB. Not exactly a team of nobodies.

So, for those who argue that the game of baseball needs to introduce a new scheduling format, a salary cap, and stricter revenue sharing, I ask why? The game is in great shape. If the Yankees win the World Series this year it will be their first since 2000. They've carried one of the top, if not the top, payrolls in the game over that entire period of time. Payroll can buy a lot of great players, but the MLB proves on a yearly basis that the millions are not what buys championships.

A special thanks to Cot's Baseball Contracts for the salary information.