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09-04-2004, 05:16 PM
  #16
littleHossa
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Join Date: Apr 2003
Location: Ottawa
Country: Canada
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Quote:
Originally Posted by Trottier
Hard evidence to the contrary: it's working in Major League Baseball. Look it up. Salaries overall have decreased 3% since the luxury tax was implemented in the 2002 CBA. With one notable exception - the team in NY that hasn't won anything since 2000 - not one team has ventured over the luxury tax threshold.

Of course, that may not impress those wishing draconian steps, with the fantasy of turning back salaries to yesteryear.
I've seen an economist talk about the CBA and the NHL, and he used some examples from the MLB, and that league is in big trouble. During the 90s, both revenues and salaries were rising at about the same rate, but in the 21st century there has been a huge increase in salary while revenues have barely increased. The luxury tax won't fix their problems.

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