A while back, I wrote a post about the need for Major League Baseball to implement a salary cap.   I’ve heard the arguements about small market, low payroll teams like Minnesota or Florida making the playoffs.  I’ve heard that the players union will never approve a salary cap.  I’ve also heard that teams like the Yankees and Red Sox should be allowed to spend as much money on player payroll as they want.  In the end, those arguements simply don’t hold water.  MLB needs a salary cap.

I was reminded of the need for a salary cap again today when I was reading a rather innocuous post on MLBTradeRumors.com.  In essense, the post said that the Pirates are looking to add one or two low-cost free agents, but again this off season, they won’t be a player for any big name free agents.  The same is likely true for the Marlins, Twins, Rays, Royals and Padres, and maybe a few other teams as well.

Imagine if you were a fan of the Pirates (or any of the other teams listed).  Every off season, you get to watch other more well-healed teams compete for big name free agents — the type of player that can make a huge difference for a team — while your team quietly sits on the sideline waiting to possibly scoop up the leftovers.  It must be a hopeless feeling.

Once the off season is over and the season is about to begin, the hopeless feeling you had in the off season is doubled because you know that your favorite team has virtually no chance of competing.  For the Pirates, their only hope for the 2010 season is that they might be able to finish ahead of the Reds in the standings, especially since the Reds are under pressure to cut payroll and will likely field a worse team in 2010 than they did in 2009.

Honestly, why would any sport want to run a league in a way that allows a team in it’s largest market to outspend a small market team like the Pirates by a factor of five-to-one?  Money may not buy championships, but it sure makes it a lot easier.

The Yankees payroll allows them to put an all-star at almost every position.  And when one player underperforms, they go out in the off season and sign a free agent to replace them or trade with a lesser-payroll team to get the best player at that position.  They are constantly reloading.  I’m not a Yankees fan nor am I privy to the philosophy of their front office, but I have to believe that the Yankees (and to a lesser extent the Red Sox) view the rest of Major League Baseball as an extension of their minor league sytstem.  When they need a player, if he’s not in their farm system, they can just go to Cleveland, or Florida, or Pittsburgh and trade for the player they need.

I don’t want this post to sound like a slam against the Yankees.  I don’t blame the Yankees in the least for the competitive imbalance that exists in baseball today.  The Yankees are simply playing by the rules and doing it well.  The Yankees are not the problem, the system is the problem.

Joe Posnanski of Sports Illustrated wrote a terrific article recently highlighting the inequities in baseball.  Posnanski writes that everyone knows the Yankees outspend every other team, but they may not fully comprehend how bad the problem really is.

“This is much starker than people think, by the way. I quickly went back and looked at the numbers before writing my column for SI.com, and I’m going to reprint them here because even as someone who has also grown sick of hearing about the Yankees payroll, I found them to be stunning:

In 2002, the Yankees spent $17 million more in payroll than any other team.

In 2003, the Yankees spent $35 million more in payroll than any other team.

In 2004, the Yankees spent $57 million more in payroll than any other team. I mean, it’s ridiculous from the start but this is pure absurdity. Basically, this is like the Yankees saying: “OK, let’s spend exactly as much as the second-highest payroll in baseball. OK, we’re spending exactly as much. And now … let’s add the Oakland A’s. No, I mean let’s add their whole team, the whole payroll, add it on top and let’s play some ball!”

In 2005, the Yankees spent $85 million more than any other team. Not a misprint. Eight five.

In 2006, the Yankees spent $74 million more than any other team.

In 2007, the Yankees spent $40 million more than any other team — cutbacks, you know.

In 2008, the Yankees spent $72 million more than any other team.

In 2009, the Yankees spent $52 million more than any other team…

So how can the commissioner of baseball promote such nonsense as Hope on Opening Day when the game is set up for one team to spend tens of millions more than anyone else?”