José E. Feliciano looks on during the Game 2 of the MLB World Tour Mexico City Series between the San Diego Padres and Arizona Diamondbacks at Alfredo Harp Helu Stadium. The record sale of the Padres to him is already playing into salary cap discourse. (Photo by Meg McLaughlin / The San Diego Union-Tribune via Getty Images)
It may seem odd that the sale of the San Diego Padres and the Los Angeles Lakers would become a flashpoint for Major League Baseball's push for a salary cap, but make no mistake, the league and the MLB Players **** ociation are already teeing it up.
For all the talk by MLB Commissioner Rob Manfred and other executives in the league about listening to the fans regarding implementing a salary cap, underneath the surface is something tied to it that would massively inflate owner profits: increased franchise valuations. A salary cap, with its floor, ceiling, and other constraints on player contracts, creates cost certainty and therefore improves the value of the franchise itself.
Within the last week, two club sales highlight the differences between MLB and the NBA. Both have details that provide context over some of the talking points that the headline figures provide.
On Monday, MLB's owners unanimously approved the record-setting $3.8 billion sale to the new ownership group of the San Diego Padres, led by incoming control person José E. Feliciano and his wife and business partner, Kwanza Jones. The vote, conducted by conference call, does not close the books entirely on the sale. Approval remains contingent on closing the transaction involving the controlling interest in the club with the Seidler family, which the league said is "expected in the weeks ahead."
#league #sale #already
It may seem odd that the sale of the San Diego Padres and the Los Angeles Lakers would become a flashpoint for Major League Baseball's push for a salary cap, but make no mistake, the league and the MLB Players **** ociation are already teeing it up.
For all the talk by MLB Commissioner Rob Manfred and other executives in the league about listening to the fans regarding implementing a salary cap, underneath the surface is something tied to it that would massively inflate owner profits: increased franchise valuations. A salary cap, with its floor, ceiling, and other constraints on player contracts, creates cost certainty and therefore improves the value of the franchise itself.
Within the last week, two club sales highlight the differences between MLB and the NBA. Both have details that provide context over some of the talking points that the headline figures provide.
On Monday, MLB's owners unanimously approved the record-setting $3.8 billion sale to the new ownership group of the San Diego Padres, led by incoming control person José E. Feliciano and his wife and business partner, Kwanza Jones. The vote, conducted by conference call, does not close the books entirely on the sale. Approval remains contingent on closing the transaction involving the controlling interest in the club with the Seidler family, which the league said is "expected in the weeks ahead."
#league #sale #already
4 days ago
