Cincinnati.Com
NKY.COM  |  ENQUIRER  |  CIN WEEKLY  |  Classifieds  |  Cars  |  Homes  |  Jobs  |  Help
Currently:
11°F
Light Snow
Weather | Traffic
Reds
HOME
NEWS
ENTERTAINMENT
SPORTS
REDS
BENGALS
LOCAL GUIDE
MULTIMEDIA
ARCHIVES
SEARCH
CINCINNATI REDS 
Schedule 
TV Schedule 
Game Logs 
Roster 

Reds News 
MLB News 
NL Game Capsules 
AL Game Capsules 
NL Standings 
AL Standings 

Marge Schott 
Great American 
Cinergy Field 
Joe Nuxhall 
Pete Rose 
Borgman Cartoons 
Photo Galleries 
Wallpaper 



 
Thursday, April 25, 2002

Owners pitch luxury tax


They want rich teams to share more with poor

By John Erardi jerardi@enquirer.com
The Cincinnati Enquirer

        The key to the owners' proposal of giving more teams a legitimate chance to reach and win the World Series — a concept they call restoring “competitive balance” — is money.

        More of it for the have-nots, less of it for the haves.

        Major League Baseball proposes a 50-percent luxury tax on those teams with annual payrolls above $98 million, and increasing the percentage of locally shared revenue from 20 percent to 50 percent.

        MLB said it has the votes — three-quarters of the 30 club owners — to enact these measures, but needs the approval of the players' union to do so. Why? Because it's a collective-bargaining issue.

        “Who is benefiting from the system of having a competitive advantage and being able to sustain that over a period of time, of making money or at least not losing their shirt?” Sandy Alderson, MLB's executive vice president of baseball operations, told The Enquirer Wednesday.

        “Maybe you can identify two or three at the most. What it takes to adopt reve nue sharing is a three-quarters vote. This small-market/big-market mentality has shifted to the point where we only have two or three teams who are interested in preserving the existing system, as opposed to what existed six or seven years ago, where you had big-market caucuses (numbering) 10 or 12.”

        But there are those in the union who wonder whether, in fact, three-quarters of the 30 owners would agree to giving so much of their money to the have-nots — even if the have-nots agree to a minimum payroll — rather than simply using that money to become profitable.

        “The clubs are prepared to do this because of what they see out there,” said Robert Manfred, MLB's executive vice president for labor and human resources.

        He said the competitive-balance tax — formerly known as the luxury tax — would mean the New York Yankees would have to pay 50 percent of the difference between $98 million and $160 million, the payroll figure Major League Baseball considers them to be paying for taxing purposes.

        “What you're doing is slowing down the front end and hoping that you can get that lagging group to start moving forward,” Mr. Alderson said.

       



Reds Stories
Reds 4, Rockies 3
Reds box, runs
Barely hundred fans at finish
Small crowds could mean big trouble for Reds
Baseball owners push deal to avert strike
Reds broke even last year, baseball says
SULLIVAN: Baseball's future lies in balance
- Owners pitch luxury tax
'Middle-class' players could prove to be key
Reds fined for tampering with Griffey
No date set on Griffey's return
Reds Notebook: Kearns earns playing time
Yankees 8, Athletics 5
Angels 10, Mariners 6
Cubs 10, Giants 4
Expos 5, Brewers 4, 15 innings

Frerotte just wants a chance
Golf Course Spotlight
Turf care a task for all seasons
Golf tip from Gary Player
UK selects Prince as MVP
Coming up this week
Lebanon's Merchant retires after 25 years
Cincinnati high school highlights
Cincinnati high school results
High School Baseball Notebook
High School Tennis Notebook
High School Track Notebook


Return to Reds front page...


Email this story to a friend


 
REDS NEWSLETTER
Subscribe to the Cincinnati.Com Reds Report.
Cincinnati.Com
Search our site by keyword:  

Search also: News | Jobs | Homes | Cars | Classifieds | Obits | Coupons | Events | Dining
Movies/DVDs | Video Games | Hotels | Golf | Visitor's Guide | Maps/Directions | Yellow Pages

  CINCINNATI.COM  |  NKY.COM  |  ENQUIRER  |  CIN WEEKLY  |  Classifieds  |  Cars  |  Homes  |  Jobs  |  Help
Copyright 1995-2007. The Cincinnati Enquirer, a Gannett Co. Inc. newspaper.
Use of this site signifies your agreement to the Terms of Service (updated December 19, 2002).