In the early to mid-2000s, a big problem was the financial discrepancy between large-market teams such as the New York Yankees and small-market teams such as the Tampa Bay Rays. How could small-market teams compete? Over the ensuing 15 years, multiple changes have occurred to lower the on-field disparity between large and small-market teams. The growth of national TV contracts have given all teams a steady source of shared revenue, even when large-market teams are on TV much more frequently than small-market teams. A luxury tax on payrolls penalized spending by large-market teams, which has restrained spending on players.

Source: Taipei Times February 15, 2019 15:56 UTC