High Quality Content by WIKIPEDIA articles! The highest paid player in Major League Baseball (MLB) for the 2012 season is New York Yankees' third baseman Alex Rodriguez with an annual salary of $30,000,000, nearly $6 million higher than the second-highest paid player, Vernon Wells. MLB does not have a hard salary cap, instead employing a luxury tax which applies to teams whose total payroll exceeds certain set thresholds for a given season.Free agency did not exist in MLB prior to the end of the reserve clause in the 1970s, allowing owners before that time to wholly dictate the terms of player negotiations and resulting in significantly lower salaries. Babe Ruth, widely regarded as one of the greatest baseball players ever, earned an estimated $910,696 ($13,917,507 inflation-adjusted from 1931 dollars) over his entire playing career. When asked in 1929 or 1930 whether he thought he deserved earning $80,000 ($1,112,988 inflation-adjusted), while the president, Herbert Hoover, had a...

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