Major League Baseball (MLB) is at a crossroads. With the Los Angeles Dodgers’ recent signing of Japanese super star Shohei Ohtani to a 700-million-dollar contract, sports fans all over the world are left asking themselves: are the best MLB teams simply the ones who spend the most money? In other words, is baseball a pay-to-win sport?

The MLB has never had a concrete salary cap in the history of the league. In 1903, the North American professional baseball organization (now the MLB), was established with the merging of the National and American leagues. It’s nothing new that wealthy teams outspend small-market clubs each year during free agency. According to Bleacher Report, the New York Mets led the MLB with the highest payroll during the 2023 season: $336 million dollars. On the other hand, Oakland Athletics spent a mere $40.9 million dollars. This disproportionate amount of spending among clubs is mainly due to the lack of a salary cap in baseball, and contrarily, a salary floor such as the National Hockey League (NHL).

The MLB does have a system used to maintain an “even” playing field for all teams.  In 2022, the MLB and the MLBPA (Major League Baseball Players Association), signed a new Collective Bargaining Agreement (CBA). This agreement protects the rights of players and ensures both owners and athletes follow the set rules. This CBA adjusted the Competitive Balance Tax or luxury tax. If a club exceeds their payroll threshold during that year, they are taxed for every dollar above the threshold. If teams continuously exceed this threshold from year to year, their tax rate is increased. The New York Mets broke the luxury tax record this past season, and therefore had to pay $101 million, even after a disappointing season. This luxury tax system is only somewhat effective, as simply paying more money will get owners out of any “pickles”.

The Competitive Balance Tax is used to deter owners from spending more than the relatively flexible payroll threshold. There is a huge divide among MLB owners, as some are more than willing to exceed this limit if it gives their team a chance to get some of the best players in the game. For example, the LA Dodgers spent 1.2 billion dollars this offseason on four players. In contrast, according to spotrac.com, the Oakland Athletics have spent a total of $12.25 million plus an additional $9.25 million in a recent trade for a veteran pitcher. To put this into perspective, the Dodger’s highest paid player will be making $70 million this season; the Athletics’ highest paid player will make $25 million. This alone is a difference of 45 million dollars between the two clubs. Keep in mind, Oakland spent a total of $41 million in payroll salaries last season and finished in last place in the MLB by a long shot. So, the highest paid Dodger player makes more in a year than the whole Athletics team.

As was previously mentioned, the Dodgers spent 1.2 billion dollars on four players this offseason. This alone shows how unfair the current “salary cap system” in the MLB is. On top of that, Ohtani and the Dodgers decided to defer $68 million per year. This will allow the Dodgers to still have spending money to work with in the near future, to ensure they can buy their way to staying competitive. So, Ohtani will make $2 million a year until 2034, when he will earn $68 million for another nine years. Shohei is already 29 years old, so he will continue to get paid well into retirement. He will be 40 years old by the time his contract officially expires. Even without the best player in baseball, the Dodgers have consistently been one of the biggest powerhouses with their large spending, resulting in 9 straight playoff appearances.

The Dodgers have made deferrals with other players in the past. Mookie Betts’ contract will officially end in the year 2044 and teammate Freddie Freeman’s contract will expire in the year 2040. According to The Sporting News, the LA Dodgers will spend a total of $852 million for those three players over the next 17 years. That’s a lot of money to spend on players that will be well into retirement and long past helping their team win a World Series.

From owners willing to break the bank in order to see their team succeed, to those only willing to pay the bare minimum no matter the outcome, Major League Baseball needs to make a change. Whether that is imposing a concrete salary cap system, or significantly increasing the Competitive Balance Tax, change is needed. Throughout the history of baseball, there is a pattern of large market teams buying talent to help take their team to a championship. Small market teams can simply not afford to do this. This creates a major competitive disadvantage among those smaller teams. It’s time for the MLB to level the playing field, so that all are given a fair chance to succeed. Only then can we truly honour the game of baseball and view it as a game of sportsmanship and equality.