I said this on Twitter but I think the MLB has done a decent job of putting a system in place that allows the have nots to compete with the haves. Last year the Orioles, Rays, Marlins, Brewers, Twins and Diamondbacks all made the playoffs with lower half payroll teams. A couple of the big spending teams like the Dodgers and Braves didn’t win a playoff round while none of the top 3 payroll teams made the playoffs (Mets, Yankees, Padres). Furthermore the Dodgers spend ridiculous sums of money and make the playoffs every year but only won a title in the weird pandemic season.
But…it is quite ridiculous when a team can sign player that makes more money than the 26 man roster of 1/4 of all baseball teams. Really no way to cap the Dodgers or Mets or whoever from spending however much they want as the luxury tax isn’t enough of a deterrent for them even after increasing the penalties. The only step would be a salary cap but that’s never happening for a variety of reasons.