What you're describing is a "luxury tax," and the MLB has it. It's something like 20% of the contract value over a certain payroll threshold, with increasing charges the farther above you get.
The money collected from that doesn't all go to the other teams, but a meaningful chunk of it does.
Comments
What you're describing is a "luxury tax," and the MLB has it. It's something like 20% of the contract value over a certain payroll threshold, with increasing charges the farther above you get.
The money collected from that doesn't all go to the other teams, but a meaningful chunk of it does.