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Free Market
What's left of the reserve clause is killing competition. Stop protecting the franchise rights and let teams move where they think the business is. Let the free market have its way. When six teams start building stadiums in NY, NJ and Conn, then Steinbrenner may start negotiating shared revenues.
Baseball's arguement against letting teams move is that it defeats the loyalty of the fans. Now that they propose contraction, that arguement has no merit.
Now that baseball has a CEO, rather than real commissioner, all the aguements that protect the reserve cluase don't make sence. Let all the teams compete without monoplistic protection. The Yankees and Mets are currently given a tremendous advantage by being protected from competition. Let teams move as they see fit, just as any other business can. It is better than contraction and compitition will control all the other costs including players salaries, parking and food/drink.