Major League Baseball (MLB) has a luxury tax, called the “competitive balance tax”, in place of a salary cap in order to level the spending an individual team can spend on their roster. In many other professional sports leagues in North America there is a salary cap that limits what each team can spend on their players. If a league lacks a salary cap or a luxury tax, any team can spend all the money they can afford on players. This means teams with more limited financial resources cannot afford the top talent, putting them at a competitive disadvantage against rich teams.