To add to the argument -- remember that over 50% of all luxury tax (Competitive Balance Tax, or CBT) goes to the players for pensions and benefits. There is also a $3.5MM off the top for player benefits. The remaining money goes into the Commission's discretionary pool. From my friend Copilot:
Under the current MLB Collective Bargaining Agreement:
A small fixed amount (e.g., the first ~$3.5 million each year) goes to player benefits (e.g., health plans, pensions).
About 50 % of the remaining CBT revenue goes to player retirement accounts and other benefit plans.
The other ~50 % of the remaining amount is placed in a Commissioner’s discretionary fund, which is then distributed to non-CBT teams (often small-market/revenue-sharing recipients) based on factors like local revenue growth.
So if you break total CBT receipts down roughly:
Player benefits & retirement — a majority of the net proceeds after the fixed first slice.
Small-market/under-threshold teams — a share of the remaining CBT via the discretionary fund.
This means players as a whole receive a significant portion of CBT revenue, often more than what small-market clubs receive directly.
There is no way that the players will give up their 3.5M off the top nor the 50% of the luxury tax. Now, increase the revenue sharing? Baseball is screwed.
I know two players who were in the minors. One of them was on track to make it to the majors while the other one needed help. They both ended up retiring because of heart conditions. What are they getting from this pool of money? Zero. Yes, they never played in the majors, but did participant in the baseball hierarchy. If a club is going to sign them, I would like to see them get some type of pension package, too. Since the players have so much money, perhaps they would share a pittance with those who were in the minors?