Spuzz It is funny you should mention that. The Yankees salary right now is 167 million. There are quite a few teams with higher payrolls and the Blue Jays payroll is 161 million. The Houston Astros are at 160 million. So a salary cap is not really the problem. One of the biggest problems is expansion has put teams in cities that wanted them, but can't support them due to lack or media dollars. That is why you see teams that build by the draft and have some good years even winning a WS occasionally, but they can't afford the big bucks when the kids go free agent and eventually they have to have a fire sale to rid them of the high payroll and start all over again. There are other reasons but in my estimation that is one of the biggest problems.
As another look at it the LA Angles are 174 million, the Giants are second at 208 million they were one of the worst teams in their division last year and two other playoff teams the Twins and the Indians were at 131 and 137 million. There is a quasi cap at 197 million and if you go over that amount you pay a tax. After three years if you are still over that "cap" your tax rate is 90% on the amount over the "cap".
If you followed the free agent market this year you saw how teams were shedding salary and also not bidding on the big free agents because of the "cap". Teams like Miami lost 60 million dollars last year. They won two WS series awhile back and then dismantled the team shedding dollars. They have lost so much money that the owner dumped the team and the winners of the franchise got rid of almost every high dollar player.