Salary Caps For Professional Athletes
There are numerous laws that already exists in witch to prevent similar business to restrict pays and limit the command for their companies. This allows employees to not be bribed or feel obliged to work for one company over another. The same concept is included in professional sports in the idea of a salary cap. A salary cap is a mechanism that allows owners of companies to control and quash an athletes wages. Very wealthy owners of companies with shell out a lot of money to have certain players on their team. If one owner happens to be generally more wealthy than anther, then you would start to see many star players joining the same program because of the wages they are offered. The salary caps allow one very wealthy organization to not overpower the rest. By limiting the amount of money a certain player can make to a certain amount, one single team cannot out bid another. Salary caps are necessary in professional sports for them to function. By not limiting the amount of money a team can spend on a player the odds of a team winning increases and level of competition decreases, witch leads to decrease in value of an organization as a whole. Many different sports organizations use a salary cap today including the NFL, NHL, MLB, and NBA. The NFL and NHL use a very strict cap that has caused controversy such as lockouts, but is rarely exceeded. The MLB uses the idea of a luxury tax, in which for every dollar that is payed over the cap they will be fined a certain amount. The NBA runs it a little differently with the Larry Bird Exception allowing owners to raise the wage of certain players to keep them on their team for an extended period of time. Regardless of exceptions or not, each league has the cap for one reason, and that is to keep the level of competition equal throughout the franchises. “The key difference between sports and other industries is that competition is the product that leagues sell....
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