- MLB owners are pushing for a salary cap in new collective bargaining agreement.
- The NBA moved from a dynasty-dominated league to one defined by parity with stricter salary cap
- MLB isn't opposed to dynasties as long as the league's financial structure rewards smarts over spending.
MLB owners and players are preparing for a likely lockout, and potentially missed games in 2027, over the contentious issue of adopting a salary cap. Owners are fighting to keep payrolls in check, and players want to get paid what they think they deserve.
But don't be confused — this isn't a referendum on curbing sports dynasties.
"We don't think dynasties are bad," said Morgan Sword, MLB's executive vice president of baseball operations, in an interview with CNBC Sport. "Dynasties that are achieved on well-run organizations can be wonderful for a league and engage people outside of that city."
Earlier this week, MLB proposed a cap of $258.2 million and a floor of $180.2 million to start in 2028. Limiting the spending ranges of teams should make the league inherently more fair, according to MLB executives. Currently, teams can spend an unlimited amount on players without penalty. The New York Mets and L.A. Dodgers spentmore than $335 million on their 2026 rosters while the Miami Marlins and Cleveland Guardians spent less than $90 million, according to USA Today data.
Still, reasonable people can argue both sides of whether there's actually a competitive balance problem in baseball. MLBPA head Bruce Meyer has repeatedly pointed to metrics, such as the varied array of recent World Series winners — 10 different teams in the last 13 years — and the success of mid- or small-market, low-spending teams such as the Guardians, Tampa Bay Rays and Brewers, that prove the point that a cap is simply not needed.
Whether a league should value dynasties over parity, or vice versa, to improve fan engagement is a topic for debate. NBA Commissioner Adam Silver has hedged on this issue. In a CNBC Sport interview in 2024, he suggested parity was a superior outcome to dynasties.
NBA Commissioner Adam Silver speaks to the media after the Board of Governors meetings during the 2026 Las Vegas Summer League on July 14, 2026 at the Thomas & Mack Center in Las Vegas, Nevada.David Dow | National Basketball Association | Getty Images"The data is absolutely crystal clear that the more competition you have, the more it drives interest in the league," Silver said in 2024. "If you have a 30-team league and you only have four teams competing for championships, of course the fans of those teams love that, and the fans of those teams that have been historic dynasties have disproportionate amounts of fans. But, we think competition is great. That's ultimately what we're providing to our fans."
Still, in an interview with "The Dan Patrick Show" in June, Silver noted dynasties can be "great" as long as fans agree that league rules are fair for all competitors.
"I don't think fans are as enthusiastic about them if one team is spending drastically more than another team," Silver said.
The NBA changed its salary cap before the 2024-25 season to include a second apron that disincentivizes spending above a certain threshold with harsh penalties that restrict free agency and trades. Only one NBA team — the Denver Nuggets — spent over the second apron this season, set at $221.7 million for 2026-27.
Silver credits the change with a move toward emphasizing parity over dynasties — a topic he discussed in 2024 with CNBC Sport after the second apron's introduction.
The NBA has had eight different champions in the past eight seasons. Even the losing teams in the most recent NBA Finals have been varied. The last nine runners-up: the San Antonio Spurs, Indiana Pacers, Dallas Mavericks, Miami Heat, Boston Celtics, Phoenix Suns, Heat, Golden State Warriors, and the Cleveland Cavaliers.
Both MLB and NBA league executives have said they view the NFL's hard cap setup as the gold standard in sports competitive balance.
"The goal over time has been, and I've said it, to be more NFL-like, where you believe your team has a shot … regardless of the market size, " Silver said in June. "Fans want a sense that [the league construction] is not top heavy, as it was historically in the NBA. Remember, three teams won 60% of the championships over the first 65 years of this league."
There's some irony in both leagues pointing to the NFL as the prototype for competitive balance. The New England Patriots had a 20-year dynasty from 2001 to 2021 with quarterback Tom Brady and head coach Bill Belichick. Barring significant injuries, teams like the Kansas City Chiefs, Buffalo Bills and San Francisco 49ers have recently been Super Bowl contenders every season while bottom dwellers such as the Arizona Cardinals and New York Jets seem to struggle year after year.
There's an argument the hard cap is actually a detriment to competitive balance.
A cap "takes competition out of the hands of clubs and prevents teams from getting better," NFLPA chief Bruce Meyer said to The Athletic last month. "It certainly doesn't guarantee better balance, and we know that from the dynasties in the other sports."
SCOTTSDALE, AZ - FEBRUARY 14: Morgan Sword, MLB Executive Vice President of Baseball Operations speaks to the media during the On-Field Rules Demonstration at Salt River Fields in Scottsdale on Tuesday, February 14, 2023 in Scottsdale, Arizona. (Photo by Daniel Shirey/MLB Photos via Getty Images)Daniel Shirey | Major League Baseball | Getty ImagesBut Sword argued the existence of dynasties in the NFL is actually a selling point, not a flaw.
"It's frustrating for fans where the Kansas City Royals don't have the same opportunity to build a dynasty as the Kansas City Chiefs because of the economic system of the leagues," Sword said.
MLB's point of view on dynasties is they can be "wonderful" for a league, he said.
"I believe fans love excellence," said Sword. "If fans think the game is being played on a fair set of rules, fans love seeing groups of people excel under that set of rules. I think fans enjoy the whole arch of a dynasty — the construction of one, the reign of one, and the fall of one."
It's that last point that's key to MLB's argument for a cap — the fall of one. MLB fears its uncapped rules allow for well-run teams to achieve sustained successes without ever having to worry about the fall of a dynasty.
Much of the argument in the coming months for or against a cap will have to do with whether or not the players feel they are advantaged or disadvantaged by a cap. But the issue of whether caps and floors lead to a better fan experience is perhaps even more important for a league's health.
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