Baseball economics

Baseball economics refers to the financial aspects of the sport, including player salaries, team revenues, and the business operations of franchises. It involves mechanisms like revenue sharing, where wealthier teams support those with fewer resources, and the luxury tax, which penalizes teams exceeding a payroll threshold. Key factors influencing economics include broadcasting rights, ticket sales, and merchandise. Teams aim to maximize profit while remaining competitive, leading to negotiations and strategies around player contracts and roster management. Ultimately, the balance between financial success and on-field performance is crucial for both teams and the overall league.