Hal Steinbrenner supports potential salary cap for MLB

Follow Us

New York Yankees owner Hal Steinbrenner has expressed openness to the consideration of a salary cap proposal for the 2027 baseball season. However, Hal Steinbrenner emphasizes that such a cap should only be implemented if small-market teams, like the Oakland Athletics, are also required to meet a minimum payroll floor.

This stance comes as Major League Baseball (MLB) owners gather in New York to discuss the potential implementation of a salary cap, coinciding with renewed talks of the Athletics relocating to Las Vegas.

Concerns for small-market

The Athletics’ owner, John Fisher, is actively seeking $380 million in public funding from Nevada to construct a 30,000-seat ballpark in Las Vegas. As of now, the Athletics have struggled with a league-worst record of 18-50 and are averaging a meager 8,555 fans per game at the Oakland Coliseum.

Historically, players have opposed the idea of a salary cap, fearing that it would limit overall spending on player contracts. It is likely that they would resist any proposal for a salary cap by initiating a work stoppage.

Hal Steinbrenner’s concerns

Hal Steinbrenner‘s support for a salary cap proposal depends on the specific figure, but he and the players share concerns about small-market teams not investing sufficiently in their major league rosters. Hal Steinbrenner believes that it is detrimental to the industry when teams consistently field non-competitive lineups, as it diminishes the game’s overall appeal.

Agent Scott Boras, in response to Hal Steinbrenner’s remarks, suggests that teams should only receive revenue sharing and general fund contributions if they meet minimum spending requirements on players annually and over a three-year period. The Athletics’ lease at the Oakland Coliseum runs through the 2024 season, adding a time constraint to their possible relocation plans.

Payroll disparity and Hal Steinbrenner’s view

While the Yankees opened the season with a payroll of $275 million, the second-highest in MLB, the Athletics had the lowest payroll at $58 million. Interestingly, the Tampa Bay Rays, who boast the best record in the league, ranked 27th in payroll with $75 million.

Hal Steinbrenner understands the challenges faced by smaller markets, particularly citing his experience in Tampa, where the Rays operate under financial constraints. He criticizes owners who fail to invest in their teams despite having the means to do so.

Hal Steinbrenner’s Perspective on Payroll and Industry Sustainability

Regarding his own team’s payroll situation, Hal Steinbrenner’s luxury tax payroll is approaching the $293 million threshold that triggers the highest penalties. However, he remains open to taking on additional payroll if necessary as the August 1 trade deadline approaches.

Hal Steinbrenner emphasizes the significant financial losses the industry has suffered in recent years due to factors like the COVID-19 pandemic, making it unsustainable to maintain high payrolls without increasing revenues. He stresses that although it may be easy to suggest a $400 million payroll, the reality of revenue generation makes it an unfeasible proposition.

Hal Steinbrenner’s thoughts on Yankees’ Performance

In addition to the salary cap discussions, Hal Steinbrenner also shares his thoughts on various topics related to the Yankees, including the team’s performance, injuries to key players, concerns about specific players’ performances, and future considerations for the team’s management and potential player acquisitions.

As the meetings continue, it remains to be seen how the discussions surrounding a potential salary cap will unfold and whether any agreements can be reached among the MLB owners.

What do you think? Leave your comment below.

Follow Us