I posted something like this in the Skubal thread. Would love to see a workable solution with a solid floor and a soft spending cap.
Make the floor around 80-90% of the league median payroll (not average) if median payroll for all MLB teams is $165 Million then the floor spending should be in the ballpark of $140-150 Million. Anything below and the teams get dinged in terms of loss of draft picks, and possible revenue sharing revenue. All MLB contracts, no phantom injuries. No reset year "tanking". They must spend the minimum amount.
The spending cap would probably be around 125-135% of median payroll, say $210-215 Million. Teams can go over, but they get dinged with loss of draft picks, their international pool gets reduced. This is all in terms of actual payroll every year. No long term deferred money. No artificial contract voiding. They're stuck with their mistakes. Penalties will be enforced on a sliding scale.
Big spenders will spend, but not outrageous amounts, Stars will still get payed.
A median-based floor forces teams like the Pirates to field real rosters every year, while a soft cap reins in the Dodgers’ excesses without destroying their ability to contend — shrinking the gap without flattening ambition.