No, that only happens in a perfect market, where both buyers and sellers are perfectly aware of what everyone is paying and bidding. This is obviously not the case in baseball, which is not a perfect market. If baseball was a perfect market, teams' performances would vary strictly by payroll. They do not. Can you explain what imperfections in the market cause my statements to be invalid? I'm very interested to hear them. However, I have very strong problems with your last statement there. Even if every FA offer sheet were completely public, there would still be significant variations in team performance. Injuries, quality of farm system, trades, performance variation, philosophical differences in approach to team building and much more all have an impact beyond the FA market. The FA market could be a "perfect market" and there could still be teams that vastly over/underperform their payroll. Further points about markets. One of the main simplifying assumptions about perfect markets is the free availability of complete information. Because the product being traded is services provided by a human in the future, that assumption clearly doesn't fit this market. Another assumption is product homogeneity. Because each player is a combination of many different skill sets and the needs of different teams for each of the skill sets will be different, there can be no uniform ranking of the value of different players, even with free availability of perfect information. The successful participants in this market will be those who are efficient at collecting the relevant, costly information, and proficient in analyzing it within their own context.