MLB’s Luxury Tax Became A Salary Cap Because Of Decades Of Failures
There it goes.Photo: Mitchell Leff (Getty Images) Major League Baseball’s luxury tax was introduced as a compromise during collective bargaining in the late 1990s as a way to avoid implementing a salary cap, which had been one of the major points of conflict that led to the 1994 strike by the Major League Baseball Players Association. In the years of strained labor peace since then, baseball’s front offices have changed their approach to the cap. Today, for all intents and purposes, the tax doubles as a salary cap. If labor war comes, that shift will be a big reason why. The luxury tax works...
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