The most powerful agent in MLB believes that if small and mid-market teams want to better compete with the spending of clubs like the New York Mets, Los Angeles Dodgers, and Toronto Blue Jays, it isn’t with a salary cap. It’s actually through a better TV deal.
A dark cloud is looming in the distance over MLB, and its name is deferrals. Clubs in major markets spending big is nothing new. It has been a major part of the game over the last 30 years. However, salary tax thresholds, as well as teams getting better at how they spend and develop talent has proven that clubs can’t just buy a championship.
However, the Dodgers have created a serious problem during this decade. Since 2020, the franchise has won three World Series titles. Sure, their front office has done a good job picking the right players and building their minor league system. But it is very hard to deny that LA spending massive sums to create a super-roster hasn’t played a role in their success. Especially when they have over a billion dollars invested in deferred payments.
Yet they aren’t alone. The NY Mets, Blue Jays, Phillies, NY Yankees, and Padres have spent big in recent seasons as well. The Dodgers are just the most obvious target of fans’ frustration with the out-of-control spending over the last few years.
With the current collective bargaining agreement set to end after the upcoming season, there has been a lot of speculation that MLB is headed to a lockout as small and mid-market owners make a hard cap a must in the next CBA. However, according to super-agent Scott Boras, those owners shouldn’t attempt to die on that hill. And instead, they should work towards a better media rights deal.
Could a better MLB media rights deal bring greater parity?
During a new appearance on the Foul Territory podcast, Boras explained that the NBA getting $8 billion in its latest media rights deals shows a clear flaw in the MLB’s current television strategy. The NBA sells most of its product as a complete package. However, MLB teams get most of their TV revenue from regional partnerships.
That has been particularly problematic in recent years, with key regional networks for small and mid-market teams having to file for bankruptcy. Which costs those clubs tens of millions in yearly income. The super agent believes that if MLB sold their content as a whole, since it offers double that of the NBA, the league’s teams could split up a pot worth as much as $20 billion.
Furthermore, he added that MLB has a strong reach in Asia, as well as Latin America and Canada. Places where the NFL or NBA isn’t as strong. Boras feels that added revenue would allow small and mid-market teams to better compete in free agency for top stars. It would also separate big market clubs from their local TV deals. Which would diminish some of their own income.
While it would seem like the Mets, Dodgers, or Yankees would not want to give up a notable part of their yearly revenue, there were reports late last year that suggested those clubs and the MLB Players Association would be more open to giving up TV deals, instead of instituting a hard cap on payrolls in the next CBA.
