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John Russillo's avatar

Agree that the Red Sox should spend more because they have the resources. Disagree that small market owners can compete by just spending more. If you spend more than you take in why own a business in the first place?

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Chris Felico's avatar

Correct, if people think you still need a soft cap to prevent payroll monsters, you would have both a floor penalty and soft cap penalty. Take penalty money and share it between top teams just below cap. Those are the teams spending enough to stay away from floor, but below the soft cap, and are therefore reinvesting the most to their product within the lines given.

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Chris Felico's avatar

Yes, but the penalties punish those that spend. My fix is punish those that don’t with a floor.

I have no issue with deferred money, if a player is willing to accept it and it’s not illegal, then who cares… at some point the differing of money will come back to strap you. And, if it doesn’t why punish a genius GM when others can do the same and don’t?

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John Russillo's avatar

Ok your article said penalties for being above the soft cap.

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Chris Felico's avatar

At face value, I understand and agree with you. I think my point is a business that doesn’t reinvest in its own success will die, but in baseball you actually get paid by the teams that are reinvesting into their own teams.

I also think we can agree, if you invest in your team with better and winning players, you probably will get more revenue and in turn make more money.

Like the Ohtani contract, at face value was a crazy contract. In reality it’s genius and the greatest contract in sports history. Pay a guy $700million for 10 years and collect $70million in Japanese endorsements every year, which pays the contract.

Then take that $70million in endorsements and tack on average interest and by the 10th year the $700million is now almost $1.5billion. You made $800million by investing $700million upfront and had the cost washed the whole time in real time.

Now, that’s a unique example with Ohtani, but the point is winning players and teams make money. Heck, even the losing Red Sox were printing money last year finishing in 3rd place. But, if owners don’t reinvest their earnings into the product, the product will suck. But, baseball keeps its status quo with the current design.

Just my opinion.

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John Russillo's avatar

Isn't the CBT already a soft cap with penalties? I also think disallowing deferred salaries would level the playing field.

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