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08-14-2012, 11:39 AM
  #111
RGY
(Jagr68NYR94Leetch)
 
Join Date: Jul 2005
Location: Long Island, NY
Country: United States
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Quote:
Originally Posted by Blueshirt Believer View Post
There is another issue with the Luxury Tax. What happens when the big clubs don't want to spend over the limit? Well then you just created a scenario where the small market teams are getting essentially no money. It only works if the big market clubs are overspending their salaries.

Remember, baseball teams(Yankees) can afford significant tax penalties, because of the revenue they generate.
By the same token what if you set the benchmark for the luxury tax at a lower limit? More teams will hit the mark and have to pay the penalties. Also if a team isnt hitting the luxury tax mark then that means they arent buying up the big free agent names come July 1st. Other teams will have an opportunity to add those players.

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