Quote:
Originally Posted by waltwa
The point is that if a team spends 100 mil on player development and begins to win championships every year all teams will go in that direction.
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Any such expenditures are constrained to a range of possible values by the revenues coming in and the other expenses a club has to pay.
Look at it this way: there is nothing actually stopping the Tampa Bay Rays, or any other MLB club, from signing $200 million worth of player salaries for the 2012 season. So why don't they do it? Because they know they'll never take in anywhere near enough revenue in 2012 to cover $200 million in player salaries plus all the other expenses it has to pay. And the owners aren't prepared to bathe in that level of red ink. So the player salary bill is held to a more rational level, one matched to the revenue the club thinks it can make in 2012.
All expenses end up being constrained in this manner. It's just that wealthier clubs have a bit more freedom in their financial decision making than do less wealthy clubs.