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MLB has a very steep "luxury tax"I have no problem with athletes getting paid.... owners make money far beyond what any of these contracts cost.
But in MLB, there's neither a salary cap or a salary floor. This has resulted in an inherently flawed economic situation. There's really nothing stopping a team spending. Neither is there anything stopping a team from NOT spending. To wit: NY Mets with a 353M payroll vs Oakland with a 56M payroll.
It's possible, certainly, to be competitive at a low payroll, or to be awful with a high one, but when you look at teams overall where they finish in the standings vs their payroll, the ones that spend are the ones at the top.
it's not a "cap" but it's a penalty for spending too much.












