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This means that not only is this threshold too high for it to be really beneficial but it also does not help the other teams directly. The tax paid is used for player benefits (50%), the industry growth fund (25%), and developing players in countries lacking organized high school baseball (25%). The small money teams will get some benefits but not the entire luxury tax pot...
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The small money teams will get some benefits but not the entire luxury tax pot. In order for this tax to be increasingly successful they would need to significantly lower the threshold.
One system that major league baseball has into place and should be a major aid in achieving competitive balance is reverse-order entry draft...
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