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The need for financial transparency in major league baseball is brought to the forefront, particularly when discussing revenue-sharing systems. Teams that benefit from these systems, like the Yankees and Dodgers, often become frustrated if those funds are not reinvested into their respective clubs to improve competitiveness.
Rosenthal suggests a dual-penalty system, where significant penalties for teams that fall below a certain payroll threshold could incentivize owners to invest properly in their franchises, mirroring the luxury tax imposed on higher-spending teams. This suggestion aims to strike a balance between ensuring competitive play and holding owners accountable.