Financial Fair Play Rules

Sports are part of the everyday life of many people across the world, and in the United States sports are even more present in its society's life due to the fact that there are four major sports in the country. But should the professional athletes from these sports earn salaries as high as ten or twentieth times more than the national average wage? The answer should be NO. Professional athletes must be well remunerated but can not be overpaid when there are many issues around the world that can be solved with money. At this present age, professional athletes do not play for the love of the sport, and what they really care is what is going to be the amount of money in their contracts. The fans who support their teams have the majority of guilt in the high salaries of these athletes. Any team or franchise of any sport will not be able pay excessive salaries to their players if they do not sell jerseys, tickets, packages trip, accessories related to players, and games package on TV cables. The national government should intervene in the sports federation's policies and set a salary cap that do not diverges from its population reality.

At the beginning of the twentieth century and the outset of the professional sports industry the existence of underpaid players at the premier level of athletics was a legitimate problem. It was this problem that played a role in the fixing of the

While the NCAA may be making most of its money off of college football it would be unruly to not pay other sports such as soccer, lacrosse, and basketball for both men and women. A plan proposed for the payment of college players known as the “Free Market Plan” is the idea to let the market decide how much the players make (Dohrmann). Rather than allow schools to give stipends under the watchful eye of the NCAA, advocates believe athletes should be free to make as much money as they can on their own and accepting whatever lucrative inducements an agent might offer in the hopes of landing him as a future client . A problem with this plan is the NCAA’s approval due to the fact that the more affluent schools would be able to purchase the players that they want. This would leave schools with less money to essentially have worse teams which goes against NCAA’s policy of “one school should not, because of affluent boosters or rule-breaking coaches, have an unfair advantage over another” (Dohrmann). The only way to let the free market decide while maintaining some semblance of a level playing field is to have a clearinghouse for endorsement deals and payments from agents. It would also make sure that no deals are made just to give a program a competitive advantage and that none of a player's compensation is being facilitated by

There is no demand to watch soccer”. But, Abe Metamoros believes other athletes should get paid. “Yes, pay the football players, but not the athletes in the non-revenue sports.” According to Ekow Yankah, it couldn’t hurt by paying these athletes more because, “The athletes in major football and men’s basketball programs are

The UEFA FFP Regulations is about improving the financial health of European football club (UEFA, 2014). The regulation have came in force at the end of 2012 season where all clubs had to abide to the rules and regulations to obtain the license to play in the UEFA Champions League (UEFA, 2010). Deloitte (2014a, p. 2) refers the FFP break-even requirement as ‘a change potentially as profound as that brought about by the Bosman ruling.’

Recently, the topic of compensating student athletes has become a popular subject of debate within the media. Deciding whether or not to pay student athletes may seem simple at first glance; however, further research into the debate reveals many economic studies that provide persuasive information benefitting one side over the other. Paying student athletes would be more economically efficient and to not allow payment would be considered price fixing, also this would reduce the negative externalities faced by the student athletes in the future. Although paying players would have economic benefits, it would also have high costs to the fans in the form of higher ticket prices and a loss of competition within college sports. Student athletes should

Hypothesis (H1): The Premier League and its clubs’ overall profitability improved since the arrival of Financial Fair Play.

Although, the case study of Manchester United gives us a good example of a brand’s ability to globalize, it does not give us a clear picture into how a league as a whole accomplishes these same goals. To get this clear picture of a successful global soccer league we can review a case study by Matthew Holt that examines the UEFA Champions League and its ability to succeed. The UEFA Champions League(UCL) was established after the UEFA European cup started to see more revenue increases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitability of the clubs. (Holt, 2007) UEFA sold this UCL brand

These leagues have been lobbying to help overturn the old law and make sports wagering legal nationwide. The National Basketball Association is currently in talks to receive a 1% “integrity & rights” fee from all sportsbooks. The 1% fee not only allows the NBA to be compensated for its intellectual property, but also allows the NBA to control and monitor wagering data to keep the integrity of the game. (Liptak & Draper) By following the NBA’s model, the NFL has an opportunity to not only grow their fan base but also increase their revenue

The lack of attention to absurd athlete contracts needs to change now, because it brings more competition to sports. It helps small market teams to be able to compete with the bigger name teams if there is a cap placed. This will make it more interesting for the rest of the league and its fans. It is shown that price and win percentage do have a correlation. If there was a cap, all teams would have a set range of pricing, and their win percentages would have less spread, making it very competitive and interesting to watch. In sports like soccer, without a cap, the wealthiest teams will have the power to buy the best players from around the world, and thus have the best team. This will lead to a dominance of a few teams in the whole league. With such an emphasis on the amount of money a

The U.S. women’s soccer team filed a complaint against U.S. Soccer for wage discrimination, claiming they make roughly 40% of what their male counterparts do. This is only the beginning of a trend in wage disparity in the Major Soccer League. The National Women’s Soccer League, or NWSL, has a pay ceiling per player of just $37,800. The men in Major League Soccer make an average of more than $300,000 with a median of about $100,000. The teams in the NWSL have a salary cap of $265,000, but for the men it is more than $3 million. The extremity of the wage gap is clearly depicted in CNN Money, the report states that the “amounts female American players receiving equate to less than 6 cents for every $1 earned by the German men”. The US women’s

Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of

In this assignment I will be exploring the ways in which Internal and external factors have an impact on the core revenues of Clubs and how clubs themselves can potentially help put the factors in their favour. Topics such as Fans and their behaviour and Player conduct on and off the pitch will be explored. Things that can occur which clubs have little or no power over – such as a major political shift – which can affect a clubs income will also be covered.

The Financial Reporting Council (FRC) has recently released four new standards: FRS 100 Application of Financial Reporting Requirements; FRS 101 Reduced Disclosure Framework; FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and FRS 103 Insurance Contacts. FRS 100 basically describes who does what with the new UK GAAP. It describes which principles apply to which type of business; when a business can apply the reduced disclosure framework; and when a business should follow a statement of recommended practices, or SORP. FRS 101 lays out a reduced disclosure framework for entities. Certain entities can choose to use this reduced disclosure framework while creating their financial statements. FRS 102

It has been suggested that the UCL is a product of societal evolution. After forty years without change the European Cup had become commercially obsolete to broadcasters and sponsors due to the lack of guaranteed matches involving Europe’s biggest clubs (Ahlstrom, 2002). The knockout format allowed for clubs who would bring in large sums of revenue to be eliminated after merely two games.