Major League Baseball sent their goodwill to the New York Yankees and the Boston Red Sox in the form of a luxury tax bill. The Yankees bill came to 34 million while the Red Sox only had to pay 4 million. Whats the real purpose of a luxury tax anyways, it doesn’t seem to affect the teams with the money. The Yankees will keep grabbing players and paying the tax as they have the money to do that. This all goes back to big market versus small market clubs. When the luxury tax was instituted this was one of the reasons to help small market clubs. AS you can see it’s not working.
Teams from Milwaukee, Seattle, Florida can’t keep spending the big dollars when they can’t fill there stadiums to pay the bills. The luxury tax should just be taken away. They need to have a hard salary cap where every team can only spend a certain figure, if you go over that amount you can’t field a team until you get under it.
Unless Major league baseball change some of the rules baseball will continue to struggle with attendance and small market teams will have a hard time competing with the major markets.
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