Agreed - it's not socialistic. Socialistic would mean everybody on the team gets the same salary regardless of performance.
I think some objections are:
somewhat discourages team play ("I want to be the #1 player" mentality, or # 2, etc) peer rating could be seen as unfair (rate your friends the highest). I would combine a peer rating with a mgt rating with a media rating (33% each).
Also Lebron would make the same as Joe - wait, we already have something more extreme than that!
Overall, great thinking but I think it's too radical for both sides to approve - especially the players.