This is a potential major change but thought it was an intresting idea so curious what everyone thinks. As with other proposals if this passes will not take into effect until opening day.
Current Rule
A team is not allowed to exceed the cap at any time. Transactions that put a team over the cap will not be allowed.
Proposed Rule Change
A team may exceed the salary cap at any time via minor league call up, trade or 1 free agent signing. After initially exceeding in any form (via free agency, or via trade or via minor league callup) they will be barred from signing any more free agents but may continue to take on money via trade and call up minor league players. Once a team dips back below the salary cap they can now exceed it again with 1 free agent signing.
Penalties will be incurred for exceeding the cap:
The day after the Armchair Champion is decided the accounting will take place for penalties.
For every increment of $5,000,000 a team exceeds the salary cap that team will lose a draft pick in that year's draft. The pick that is forfeited will be determined by the previous years final Combined Standings. If the team’s final standing was: 1-10 they will lose a 1st round pick, 11-20 they will lose a second round pick, or 21-30 they will lose a 3rd round pick. For every $5m increment the team exceeds the salary cap they will lose a subsequent draft pick based on the first pick forfeited.
In addition so long as a team is over the salary cap they cannot sign free agent players or sign any players to an extension; until they are below the salary cap. They may call up as many players from their Minor Leagues as they see fit and may participate in the draft and International Free Agency.
For example:
The New York Yankees exceed the $ 145,837,155 salary cap in 2020. The Yankees end of year salary is $160,000,000. $160,000,000 - $ 145,837,155 is $14,162,845, so 3 increments of $5m. In 2019 the Yankees finished 2nd in the standings. So in the 2020 draft the Yankees forfeit their 1st, 2nd, and 3rd round picks. The Yankees will be unable to sign any extensions or any free agents until they have dipped back below the salary cap.
The Tampa Bay Rays exceed the $ 145,837,155 salary cap in 2020. The Rays end of year salary is $160,000,000. $160,000,000 - $ 145,837,155 is $14,162,845, so 3 increments of $5m. In 2019 the Tampa Bay Rays finished 21st in the standings. So in the 2020 draft the Rays forfeit their 3rd, 4th, and 5th round picks. The Rays will be unable to sign any extensions or any free agents until they have dipped back below the salary cap.
Any confussion let me know and as you'll see in the option if you have a revised penalty/restriction strucute more than happy to discuss ideas.
