Preview

Salary Caps in Sports

Satisfactory Essays
Open Document
Open Document
559 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Salary Caps in Sports
Salary caps are used in all pro sports and can impact any team. Caps are imposed limits on the money a team can spend on their players salaries. Salaries in pro sports are becoming out of control and reaching 100 million dollars. Teams are becoming unbalanced and are losing profits. Salary caps should be used in pro sports.

Did you know that Michael Vick now makes nearly 100 million dollars a year?
He is even making this much after missing over two years of football and being thrown in jail for dog fighting. The average salary of a NFL player is about $770,000 yet the average salary for a teacher is about $42,000. Even after players make millions, they can make more from endorsing products. One former NFL player said, "Maybe athletes would try harder if they didn't have such whooping salaries.
Maybe salaries based more on performance would help," Salary caps are already at very large sums. Salary caps help players earn decent amounts of money, but not too much, and should be used in all pro sports.

Teams in all sports are becoming unbalanced. Teams such as the Patriots(NFL) and Yankees(MLB) have become the more powerful teams because of their money. Yet teams such as the Buccaneers(NFL) and Padres(MLB) don't have as much money and haven't made the playoffs in years. Teams with the most money can offer the most money to a player and be more likely to get him
. A pro sports consultant once said , "There is example after example of teams making the playoffs every year and teams just about never making them. When salary caps are put in place, teams become balanced and every team can have a good season,"

In every sport their is a team losing profits and barely making the salary floor, lowest amount to be spent on salaries. Teams lose money everyday due to the salaries of staff and players. When a team has a bad season they can lose fans, and wont get money for tickets, food, and souvenirs. If a team loses to many fans ticket

You May Also Find These Documents Helpful

  • Good Essays

    "To hear far too many tell it, a salary cap is the panacea for all that ails baseball." There are many theories and examples that support the other side’s argument as well for example, the NBA and NFL both have salary caps, but baseball is nothing like these sports. It’s a whole different situation. Many people argue that MLB only needs a revamping if…

    • 504 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Businesses are continuously looking at ways to maximize their advertising dollars. Major League Baseball teams are no different, with franchises being valued in the billions and players salaries in the hundreds of millions, ownership must find ways to maximize their return on investment.…

    • 1241 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Bba Salary Research Paper

    • 334 Words
    • 2 Pages

    It’s no surprise that salaries in professional sports keep rising. But seeing how much players made just 25 years ago shows how much salaries have increased today.…

    • 334 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The Yankees payroll was 156 million last year compare that to the team with the second highest payroll the Los Angeles Dodgers at 115 million and it is easy to see that the Yankees are able to spend much more money on their team than any other organization. Then compare the Yankees payroll to the lowest 21 team payrolls and the Yankees payroll more than doubles any of these teams. This shows that teams on the high end of payroll have much more money to work with when signing players to play on their teams. Competitive balance focuses on whether the salary cap would be able to allow all teams, particularly teams with the bottom ten payrolls to be competitive or would it have no affect or would it make the situation that exists worse. The production function for success of a club is: Success = (payroll + player talent + coaching talent + scouting talent - injuries). This is the production function for success because these are the factors that lead to successful winning seasons. Payroll is high on the list because it directly affects other factors in the production function. The way that payroll correlates with the success of a team is that teams with high payrolls are more likely to have successful seasons. It affects all other…

    • 1879 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Foreign Market Entry

    • 760 Words
    • 4 Pages

    When it comes to salaries, no profit-oriented team owner will knowingly pay more than a player is expected to generate in:…

    • 760 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In the last decade, almost all the big cities in the United States, and a few small cities as well, have battled with each other for the right to host big league franchises. Cities spend hundreds of millions of dollars to build new stadiums and offer enticements to private franchise owners. Politicians often push for stadiums and other favors to teams despite not having support from neighborhoods and general opposition across the whole city, especially where these high dollar stadiums would be built.…

    • 1051 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    P.E Issue Analysis

    • 1378 Words
    • 6 Pages

    Since the beginning of the English Premier League there have been four major football teams which consist of Manchester United, Liverpool, Arsenal and Chelsea. In the last twenty years Manchester United have bagged twelve Premier League championships, Chelsea have won two, Liverpool have won two and Arsenal have won three. Other than Blackburn Rovers no other premier league football team has been able to even shake the outcome of the ladder and the dominance of these four teams cannot be underestimated. In recent times there has been talk about the English Premier League being a four team competition that is not nearly a fair competition as not all teams compete equally. In order to make this more even many people believe that a salary cap should be introduced so that the richer clubs cannot simply buy their way to a premiership. However, others disagree as the English Premier league strives to be the best and most entertaining football league in the world. If a salary cap is introduced the quality of players in England will decrease significantly because they will sign at another club in a different country who are willing to pay a lot more for their talent. This will threaten the amount of supporters and TV deals the league will receive which is currently the main source of income.…

    • 1378 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Mlb Economic Project

    • 1951 Words
    • 8 Pages

    Frick, Bernd, Joachim Prinz, and Karina Winkelmann. 2003. Pay inequalities and team performance: Empirical evidence from the North American major leagues. International Journal of Manpower 24: 472-491.…

    • 1951 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Nfl Business Model

    • 5631 Words
    • 23 Pages

    Introduction In March 2010, Roger Goodell, the Commissioner of the National Football League (NFL), announced an aggressive goal for his business: $25 billion in yearly revenue by 2027.1 To put that figure in perspective, the countries of Panama, Jordan, Ghana, and Iceland all had nominal GDPs less than $25 billion in 2009.2 For the NFL to reach Goodell’s lofty target, the league will have to quickly build on what Business Week has already called, “one of America’s best-run businesses.”3 During the 2008 season, the NFL made an estimated $7.6 billion in revenue and $1.0 billion in operating income. The average team value was $1.04 billion.4 The Economist wrote in 2006 that, “[the NFL] remains the most popular of the four big American sports on almost every measure, from opinion polls to television ratings.”5 A comparison of 2008 financials for the NFL, Major League Baseball (MLB), National Basketball Association (NBA), and National Hockey League (NHL) is displayed in Appendices 1 and 2. The conclusion is clear: with the highest revenue, income, and value, the NFL leads the American professional sports business. This paper will take a critical look at the NFL business model. Specifically, it will investigate how the NFL has constructed a sports empire in the United States. How does the league generate its revenues and earn profits and how has it popularized and stabilized demand for its product? I will demonstrate that the NFL’s noticeable profit…

    • 5631 Words
    • 23 Pages
    Powerful Essays
  • Better Essays

    After watching ESPN’s 30 for 30, Broke, my mind starting pondering this question of why and how so many professional athletes are blowing through the millions they make while playing their specific sport? It is amazing that someone can spend that much money so quickly. What are they buying and who are they buying things for? Where are they spending it? Where do they go wrong? When did this trend start and will it continue in the future? What are the league officials doing in order to prevent this tragedy from happening? These are some of the questions I will try to answer throughout this paper.…

    • 3911 Words
    • 16 Pages
    Better Essays
  • Better Essays

    Argument- Salary Caps

    • 1145 Words
    • 5 Pages

    3) Caraballo, Christopher A. "Baseball Needs A Salary Cap." American Chronicle. 16 Dec. 2006. <http:/www.americanchronicle.com/articles/18079>.…

    • 1145 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    I believe this because no team should be restricted on how much of their money they want to spend. As said earlier, the team with the highest payroll doesn’t always win a championship it just means they’re not afraid to spend and aren't cheap. Also players shouldn’t be capped on how much they can make in their career. Also most professional athletes are underpaid. This is due to how much revenue the players bring to the league. For example, NBA superstar, LeBron James, is a household name, he has millions of fans that expand to a wide coverage that brings more viewers to the NBA which makes them more money while the player are capped to earn a certain amount and nothing above that. Some may argue that the players earn endorsement deals and shouldn't get paid more but the players have to earn them and not all good players earn…

    • 1646 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    The current Collective Bargaining Agreement includes a limited salary cap and entry-level salary cap, and expires September 15th, 2004. It is no longer successful at controlling rapid growth in player salaries and forming a direct link between salary growth and league revenues. The Unified Report of Operations claims that the majority of NHL teams have lost money in recent years. Owners believe that there are “major deficiencies in the current contract that has led to significant financial losses and a competitive imbalance. Smaller teams can’t compete with larger teams; therefore the league can’t be competitive. There is a transition from a local market to a league-wide market, so players’ salaries are escalating to levels that are unsustainable. Entry-level salary caps are ineffective due to signing bonuses. The NHL revenue growth equals 173%, while the players’ salary growth equals 261% over the term of the CBA. The players’ salaries account for 75% of NHL revenues, which is much higher than other sports. Owners believe a mechanism is needed to control player salaries and tie them to revenues. Players question the validity of the financial information, URO, and Levitt Report. Players argue against the proposed solutions and say free market forces should determine players’ salaries. There is no validity in the owners’ financial statements, which may support that the lack of revenues is due…

    • 610 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Descriptive Statistics Paper

    • 3675 Words
    • 15 Pages

    Few sports have had the social impact that baseball has had over the years. Baseball has long been the all-American pastime. Baseball parks in most major cities across the U.S. attract families including children with dreams of becoming a baseball player. Although ballpark attendance is near 75 million, the cost to operate a major league team is substantial. Salaries alone for 2005 were over 2 billion (University of Phoenix, 2004). This number has increased nearly five-fold over the previous 10 years (USA Today, 2008). People pay to see the best athletes in all sports, not just baseball. Baseball owners analyze data to determine if paying their players higher salaries will pay off by increasing the attendance in ballparks. The data collected in the Major League Baseball Data set is typical data which owners will analyze to determine if paying higher salaries will increase overall profitability.…

    • 3675 Words
    • 15 Pages
    Satisfactory Essays
  • Satisfactory Essays

    From those reasons, we can safely conclude that professional athletes are supposed to pay higher but moderate wages…

    • 295 Words
    • 2 Pages
    Satisfactory Essays