Dodo Finance: Small-market teams can and should make big moves – an analysis by Rosenthal

Low-Revenue Teams in MLB Prove They Can Make Big Investments

In a surprising move, the Kansas City Royals recently signed Bobby Witt Jr. to an impressive 11-year, $288.7 million contract extension. This contract not only shattered records for the Royals but also challenged the notion that low-revenue teams cannot compete in Major League Baseball (MLB).

But the Royals are not alone in their big investments. Several other low-revenue teams have also made similar moves, demonstrating that the concern over payroll disparity in baseball may be overblown. Teams like the Arizona Diamondbacks, Pittsburgh Pirates, Cleveland Guardians, Seattle Mariners, Tampa Bay Rays, Colorado Rockies, and San Diego Padres have all locked up star players with significant contracts.

These contracts are a clear indicator that low-revenue teams have the ability to invest and retain their star players for large sums of money. It puts to rest the misconception that only high-revenue teams can afford to attract top talent. These deals not only benefit the players but also show a commitment from the teams to their fans, city, and overall success.

The Royals’ investment in Witt is just one example of their dedication to building a competitive roster. In addition to Witt, they have also made significant investments in free agents this offseason. It is evident that low-revenue teams are willing to make strategic investments in players to level the playing field.

While some argue that a salary cap is needed for competitive balance in baseball, it seems unlikely to be implemented in the near future due to opposition from the players’ union. Instead, alternative measures should be explored to enhance competitive balance. One potential solution could be awarding additional draft picks to low-revenue teams, giving them a better chance to acquire top talent. Additionally, implementing a penalty system for teams at the bottom of the payroll structure could help discourage perennial low-spending.

The Royals’ investment in Witt should be seen as a common practice among owners who are committed to their team’s success. It goes to show that low-revenue teams can compete and thrive in MLB by making strategic investments in players and building a competitive roster. While there may still be disparities, these teams are proving that they have the ability to play alongside the big spenders and defy expectations.