It may now be too late to realistically implement a salary cap in baseball. At the very least, any such attempt would almost certainly precipitate a protracted labor standoff, as the players’ union would vigorously oppose constraints on earning power.
This writer was 12 years old when the NHL canceled its 2004 season—a drastic measure that, in retrospect, was both comprehensible and arguably essential.
At that time, the National Hockey League was hemorrhaging money, reporting losses of approximately $273 million during the 2003–04 campaign. Players continued to demand rising salaries, despite the league’s deteriorating financial condition.
The model was unsustainable: most franchises operated at a deficit, and the revenue chasm between large-market and small-market teams eroded competitive integrity and economic viability.