Originally Posted by joshua
These TV deals are crazy. It won't be long until no one will be able to compete with teams like the Dodgers, Red Sox and Yankees...I love baseball more than just about anything, but if it begins to become so lopsided that the Reds can't compete, why watch?
Eventually it just becomes the Premier League, where only the top 4 in spending have any realistic shot at the top crown, with the difference being it's even more boring for the lower teams without anything to play for (bottom-tier PL teams have to avoid relegation). I don't know if that will be the case in the long run, but until the value of TV contracts reestablishes itself and other teams can catch up, the Dodgers can dole out long-term contracts to pretty much anybody they want.
Heck, why wouldn't they? The luxury tax is pretty irrelevant when your revenue stream is increasing exponentially. Winning a World Series provides a huge boost for your worldwide brand (increasingly more relevant than your regional brand), so in reality, all these contracts are just an investment towards that. With the Red Sox and Marlins having proven that no bad contract is too bad to trade anymore (you can even get value from it!), there's no downside at all.
In my mind, the luxury tax needs to be exponential as well. Paying a small percent extra for each contract that goes over just doesn't cut it anymore.