In the case of baseball, the negotiations are being held up by the small-market owners because the existing system is so beneficial to them. There is a de-facto salary cap through the Competitive Balance Tax, which directs money straight from the richest to the poorest teams. Meanwhile, there is no guarantee that the poor teams spend that money on actually improving their team.
I don't see any non-North American system where small-market teams perform this well. In the NFL, small-market Cincinnati was just in the Super Bowl because of a draft process that rewards poor performance.