It's probably not true, but it's a wonderful idea. The quality of the product would improve so much if there were fewer teams. Where did the idea that every large and in many cases, medium sized, city has to have a baseball team come from?
I wouldn't be terribly upset if they capped the number of teams at say, 20 major league baseball teams. I suppose, you'd have need some sort of geographic spread so that the teams aren't concentrated in one area.
Baseball really stinks now and I think getting rid of a bunch of teams would make it better. Bad teams can never be as bad as they could be because there are so many other bad teams, the Orioles, for example. Put this roster in a 20-team MLB and it would lose 120 games. As it is now, this team will struggle to lose 90.
So many people think having a sports team in their city is a right, when it should be a privilege.