Total luck and abnormality, I assure you, J.R.
http://www.cbssports.com/mlb/salaries
Yankees have a payroll of over 150 million more than the Indians. Good luck staying within a couple games of them in wild card race all year every year.
The competitive balance draft picks is an interesting idea, but I don't think it is an end all. Needs a little tweeking. Maybe all the 12 lowest payrolls should get a pick between the 1st and 2nd instead of the ping pong ball method, which gives 6 teams a pick after 1st round, and the other 6 a pick after the 2nd. Those late 2nd round picks are of little help the vast majority of the time. I dunno something. Maybe a salary cap? There's a crazy idea.
BTW, the Cavaliers weren't the only team to have luck with the ping pong balls this year. The Indians selected Mike Papi with their competitive balance pick after the 1st round due to lucking out and getting in top 6 of 12 ping pong balls.