No it wouldn't. The biggest spenders aren't going to be able to horde everybody any more than they already can. A team's operating budget will still be a budget. If a Baltimore only wants to spend $60m on the major league roster they will have all the money in the world to sign any prospect they want. Hard capping it solves nothing. Get more money into the hands of younger players earlier in the process. Yes, set the luxury tax inclusive of draft/IFA spending and get rid of the pools, and that problem solves itself. If someone would rather give the next Kris Bryant(or Mark Appel) a 15 million bonus instead of the current Tyler Chatwood a 15 million AAV in free agency, that's fine with me. It also opens up more opportunities for teams to be smarter about their scouting and be more creative with where they try to find value at the amateur level. Maybe a team wants to experiment with paying through the nose for 5 guys who are top 20 talents and then doing no other draft spending of note, or maybe someone wants to give 1 million to 20 different guys. You can't do that in the pool system. A few problems I see there: 1. Maybe the biggest, is that there is absolutely no way the Union agrees to lumping amateur spending into the LT calculations unless the limit is raised by tens of millions, while also having a salary floor implemented for the big league team. The Union will fight for amateur bonuses right up until the point that it could theoretically take even $1 away from the guys already in the bigs. 2. What penalties are you putting out there to prohibit the big markets from simply blowing past the LT? Without a draft anymore, easily the biggest deterrent to blowing past the LT is now gone. Teams have already been taxed heavily for going over previous IFA limits, and it wasn't a deterrent. Hell, they even showed that having to sit out entire years of signing amateurs wasn't a big enough deterrent if they wanted to go balls out one year. 3. Like Regular Show said, the elite talents would garner tens of millions straight out of college if it were true FA. Only the big markets can afford to take these types of chances on the young, elite guys. It creates a world where the rich can get richer. I mean, it would theoretically make it quite easy for a team like the Yankees to win the WS and then still get the #1 overall pick in the draft the next summer. This isn't parity related, but I'd be remiss if I didn't also point out that the lack of a draft would create a lot of the same backchannel shadiness that plagues Latin America and the IFA process. You would have scouts meeting with 15 year olds in HS; coming to agreements with them; paying them under the table in HS or college (more than the college already is); etc.