In recent times, there have been many teams that have been many teams that have made big money signings. Making these signings means the players are going to earn big bucks. This means the payroll of a team is also going to increase. In the middle of all this, there is one team that has found a loophole. The Major League Baseball’s new villain- the Los Angeles Dodgers. The Los Angeles Dodgers have found a way to exploit a loophole in Major League Baseball’s payroll system. They do this by deferring significant portions of player salaries, pushing these payments to future years.

This is one strategy they can use to stay under the luxury tax. It also gives them the opportunity to sign star players like Shohei Ohtani and Blake Snell. Though legal, this has sparked competitive balance concerns as it gives a rich team like the Dodgers a chance to surpass the smaller market franchises.

There was a poll done by trade rumors on X which was regarding the same subject. It said, “Do you want a salary cap in MLB CBA?”. And the fans were ready for this for a long time. Out of the 26,000 votes that were cast, 17,354 votes wanted a salary cap. Although this poll does not matter till the MLB makes a decision, it shows what the fans want. They want a fair ground for all the teams in the sport and want to give no unfair advantage to anyone. But there was some divide among the fanbases. With some even saying that this will never happen in the MLB.

One of the fans reacted to this poll saying “Somebody (dodgers) always has to F things up. It’s January and we all know they are WS champs.” The fan did not hold back and named the team he was referring to. This loophole is taken advantage of by all the teams that are willing to spend the money. But the teams that don’t have a budget will never be able to compete with them.

Another fan wrote, “The poll should also ask whether you want a salary floor to stop teams from pocketing shared monies while putting crap teams on the field.” This was to say that most of them don’t spend any money and pocket the money that they make while using a small share to improve the team. Many teams like Oakland Athletics, Pittsburgh Pirates, and Cleveland Guardians did not even spend $100 million. This has frustrated many of the team fans.

Another fan wrote, “The better question is do you want to see a cap AND a floor because the reason there is such a spending disparity is because not everyone is playing the same game. You stop subsidizing owners for just being part of a group and make them spend to win, things will balance quickly.” Saying that although we need a salary cap to stop the teams from overspending, we also need a salary floor to make the teams spend a minimum amount to improve the team.

Another fan brutally wrote, “Why shouldn’t someone good at their job make as much money as they can on the free market? Do we cap CEOs? Actors? If teams want a hard salary cap then they should do RELEGATION too.” He defended the players on big contracts by saying they should earn what they deserve. And nobody should stop the teams from giving what a player deserves.

This fan also had the same thing to say but in different words. He said, “I’d also like a salary floor while we’re at it. I’m tired of my Pirates habitually spending so little.” Looks like the Pirates fan is not happy with his team not spending any money on buying big players and only buys players who are available for a very low price.

Are differed pays a recipe cooking for disaster in baseball?

There has been growing concern regarding the financial health and competitive balance of Major League Baseball in light of its reliance on the deferred payment program. Teams can manage their short-term payrolls by spreading compensation paid to a player over more extended periods and hence sign talented players while escaping levies of luxury tax.

Such an approach comes with enormous risks concerning risk exposure by players, teams, and the league itself. Inflation, tax considerations, and erosion of purchasing power all mean potential losses for the players. In contrast, the teams are racking up huge future liabilities that threaten to destabilize and undermine their competitive position when the obligations come due.

This practice also deepens the gap between wealthy, high-profile franchises and smaller-market teams. It creates an uneven playing field that undermines competitive fairness. Moreover, it diminishes fan trust. Wealthier teams take advantage of deferred payments to accumulate top-tier talent, while smaller teams find it difficult to keep up. These disparities pose a risk to the league’s credibility and long-term sustainability. Although deferred payments might offer short-term flexibility, Major League Baseball needs to consider their wider implications to ensure financial stability, uphold fairness, and protect the league’s future.