This would absolutely crush the small and even medium market teams. The large market teams already have a huge advantage. The result would be at least half of the league, including the Twins, would have no chance.
I would have to believe that even the players association understands something this detrimental to the game will substantially reduce revenue. Substantially lower revenue will result in substantially less income for players.
What's fair for fans. You know the people that pay for it all. Is two-thirds of the teams getting the scraps fair to fans. Just keep in mind that there is not a professional group on the planet that has faired better financially than MLB players over the past 50 years. The average household would earn $3.17M had the rest of us increased income at the rate of MLB players. Why anyone thinks they have been treated poorly is beyond me.
The system should be tweaked. However, the relative degree of parity also needs to be maintained for the health of the game. Most importantly, half of the fans should not get screwed in terms of their teams being able to keep players.
The core of most teams are homegrown or traded for.Small market teams still attract big time players. Parity of teams has never existed