Though it kills him to say so, Red Sox fan and YFSF regular Daniel Drezner has no problem with the Yankees’ big spending ways this offseason, and, indeed, thinks they should be a model:
First, it would be awesome if American corporations acted more like the Yankees. One cause of the deepening recession is that firms are afraid to do anything other than hold cash in hand at the moment. The smart ones should invest in expansion—capital is ridiculously cheap right now and they’ll be well-poised once the economy takes off again. If enough firms acted that way, the economy actually would take off again. In signing these players, the Yankees have made long-term investments while keeping their expenditures constant relative to last year’s payroll. Given their move to a new stadium, their revenues should increase. They have made these moves in order to improve their chances of competing. That’s how corporations should behave.
He also notes, for those advocating such a system, that leagues with salary caps are more prone to dynasties than those without. A lot to mull there on a holiday weekend….