It was the Best of Times, It was the Worst of Times...

Last year on September 29, 2008, the White Sox beat the Tigers in Chicago, by a score of 8-2, in the only MLB game played that day. Why bring up this game? Because it occurred on the same day that the DOW fell 777 points, and perhaps changed baseball for the foreseeable future.

This September day kicked off the recession that our nation, and the world, has fallen into. It can be seen on the news daily, in unemployment rates, and in the political realm. However, it can be seen in sports as well, in particularly baseball. Sure, free agents didn’t get the millions they thought they could this past off-season, as front offices became penny-pinchers, but I’m talking about something bigger: the growing discrepancy between teams in baseball based on payroll.

ESPN’s Buster Olney mentioned yesterday in his blog that out of the top 8 teams based on payroll, 7 of them would make the playoffs as off today (sorry Mets). This is a far cry from a few years ago, when small market clubs like the Marlins won the Series, and the A’s and Twins made the playoffs in consecutive years. All the current divisional leaders (again, aside from the Mets) respectively lead their division in payroll, while 4 of the 6 cellar teams (aside from the Nationals and the Royals) are respectively last in payroll for their division.

There are a few reasons for this. Firstly, is the outrageous contracts for drafted players. Currently, first overall pick Stephen Strasburg is looking for a contract of $50M/5yrs. The entire Nationals payroll this season is $61M! Stephen will walk in a few weeks and re-enter the 2010 draft, only to have the same saga next season. So while losing teams do still get first-crack at young talent, they are becoming less and less able to sign their prospects.

Secondly, small market teams have been hit hardest with attendance this season. According to Forbes, eight of last season’s top ten in income are in this season’s top ten in payroll. This discrepancy should expand, as these top teams will continue to make more due to TV contracts, bigger named players, and playoff appearances, while small market teams, who can’t put a competitive team on the field, should see income go down, leading to a bad cycle of lack of talent and money.

There are probably a few other factors that are perpetuating this divide as well, but the message is, until the economy recovers and baseball, in addition, does something more drastic than luxury tax to equal the playing field, the competitiveness in baseball may dwindle.

Many claim that baseball is a business, and that is most definitely true. However, unlike most businesses, you do not compete to drive others out of the market, as one can not survive without the others. So take note Yankees, Cubs, and Red Sox…you need the Marlins, Twins, and A’s of the world. While a cap is too drastic, a payroll discrepancy of $166M (between the Yankees and Marlins) is ludicrous.

So hopefully, the next year or so will provide a turnaround: both for America and the American pastime.