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Thursday, October 29, 2009

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Your point that every other major league baseball team could pay for high-priced talent like the New York Yankees do "if they decided to," is just flat-out wrong.

Unlike the NFL where teams share revenues, making it possible for cities like New York and Green Bay able to compete for talent more or less equally, Major League Baseball teams in large markets enjoy a distinct advantage in that they generate a lot more revenue and therefore can spend a lot more on talent.

It's not possible for the Kansas City Royals or teams in similar markets to pay for an Alex Rodriguez without breaking the bank and their business model. Yes, some small market teams can compete by being smarter about acquiring young, cheap talent and then trading it away when it starts to get too pricey (think the Florida Marlins), but they can't compete regularly for the same talent that the Yankees can outbid everyone else for.

It's fine to love the Yankees and A-Rod -- and for the record, I don't -- but it is always easier to get great talent when you can consistently outpay your competitors for it. That's the Yankees strategy (the Mets too, but they don't have as much practice as the Yanks do at it) but don't hold it up as some great model and try to say that all MLB teams could do the same thing.

The Yankees leverage the advantage they have, and that means overpaying everyone else for talent. Anyone who has that advantage should be able to outperform everyone else. You, as someone who works in talent acquisition, should know that all too well.

John -

What about Boston (barring recent performance), Houston, Chicago, LA, Detroit, etc.? Just being Big Market doesn't necessarily give them inherent advantages over small market teams. Owners can decide to spend whatever they want. If Warren Buffet owned the Kansas City Royals, do you think they might be more successful? In the end, for the most part, winning teams make money (small or big markets) – losing teams struggle to make money (lack of ticket sales, merchandise sales, etc.). The Yankee’s have an organization/ownership that is dedicated to winning.

Because the Yankees spend more than everyone else on payroll, and play in World Series more often – they’ve added to the overall value to their organization.

I do agree with you – I would love to see a salary cap in the MLB – then we would see what organizations truly perform.

Thanks for the comments.

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