High Heat Stats: Rules set up parity party

Major League Baseball has long had a financial situation that rubs many fans the wrong way. We have all heard fans complain they don't like baseball because it always comes down to the big-market, high-spending teams such as the New York Yankees and the Boston Red Sox.

This is a generalization, but history has shown it to be an accurate one because of the lack of a salary cap in MLB and, perhaps more important, the lack of a salary floor. The implementation of the luxury tax has not deterred many teams.

Things are a bit different this season. Ten of the 15 teams within two games of a playoff spot entering the week have a salary less than the MLB team average of $115 million, including arguably the best team in baseball, the Oakland Athletics. The A's ranked 27th in opening-day payroll, according to Paste BN Sports' salary database.

There are many reasons to suggest this is a trend that might continue. MLB has put changes in place over the last few years to try to create a more neutral environment. MLB knows implementing a salary cap will be nearly impossible with the players union being vehemently opposed.

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Draft budget

Previously, teams could spend whatever they wanted on draftees, which led to many of the best players not getting drafted early by the teams with the worst records. Agents would tell teams their player would not sign for the amount of money the team could afford, and the better players would slip in the draft to teams with more financial flexibility.

Now teams can take whomever they like, because the earlier a team picks, the more they are allotted to spend on players. Teams can pay a player more than the slot, but that means another player must get less than his slot. The budget applies to picks in the first 10 rounds. But if a team gives a player drafted after the first 10rounds a signing bonus of more than $100,000, the amount more than the $100,000 counts against the total budget.

Exceeding the draft budget could lead to harsh penalties, including loss of draft picks.

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International spending pools

Similar to the draft budget, baseball has international spending pools. The penalties for exceeding the limits are less harsh than for exceeding the draft budget, but they are significant.

The amount of money for bonuses for international players is decreasing because this year MLB removed exemptions in which teams were allowed to sign up to six players each with $50,000 signing bonuses.

The advantage international players have is that they are not tied to one team as draft picks are. An international player can negotiate with any team.

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Contract extensions

When a player enters the majors, he has six seasons with the team that owns his rights. How well he plays in his first three seasons determines his salary over the next three seasons. In some cases, this caused a situation in which teams were tight on salary and could not foresee the amount of money they would have to pay in future years.

Teams have started offering young players — often rookies or second-year players making the minimum — long-term contracts at reduced rates. It is a fine move for the players, allowing them to earn millions of dollars without having to fear injury or poor performance. It also is a wise move for the teams, allowing them to chart the amount of money they will be spending down the line and often giving them a few more seasons with the player's rights past the initial six.

The first team to make this a popular business model was the Tampa Bay Rays. Six games into his major league career, Evan Longoria agreed to a six-year deal worth $17.5 million that included team options for three additional years. He added six guaranteed seasons and $100 million under the terms of an extension signed in November 2012.

The Milwaukee Brewers gave contract extensions to Carlos Gomez and Ryan Braun before they were eligible for free agency.

The Houston Astros and prospect Jon Singleton agreed in June to a five-year contract worth at least $10 million before Singleton had even played a big-league game. The deal also includes three option years. Singleton was immediately called up.

Teams have taken this to new heights, even offering extensions to players not expected to be franchise-altering players. Because of these low contracts for homegrown players, franchises are able to afford an occasional high-salary free agent.

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The result

The rise in parity in the league is a welcome addition to baseball and something that could grow interest.

A small-market team such as the Kansas City Royals or Pittsburgh Pirates, who have always had financial limitations, should not have to go 20 years between playoff appearances. The Pirates ended their streak last year; the Royals are still trying.

Add to that the extra wild-card spot added to each league in 2012, and no fan base should feel like it is eternally hopeless.

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Here are the teams with the top 10 records entering the week and their opening-day payroll, according to Paste BN Sports' database.