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Marc S.Should base salaries be at the league minimum, and then players get compensated for every hit, home run, double play, etc? Performance-based contracts are made to align incentives between performance and pay, although not purely so, as that may cause a dis-alignment between long-term player health and payouts. I seem to recall it was just a few weeks ago that Brian Cashman, Steinbrenner and the NY Yankees were vilified for offering Joe Torre a performance-based contract that would pay him less if the Yankees lost, but more if they won the World Series. In fact, Torre called the offer insulting, despite the fact that the base cut still would have made him the highest-paid manager in baseball.