Kansas City Zephyr

Professional baseball players work tirelessly to perfect their craft and deserve to be paid adequately. Another reason the MLBPA chooses to keep a free labor market is that with a more open labor market, team revenues can steadily increase and lead to increased player salaries. A negative side effect of this, however, is that teams can receive and use supplementary party revenues, which can help outbid competitors for top-tier free agents, and raise the cost of a player beyond the means of teams with fewer or no supplementary revenues (Zimbalist 24). Under this circumstance, which is currently the present state of MLB, a salary cap may become a sensible solution. On the other hand, if a salary cap system was in place, teams might be tempted to cheat by underreporting total revenues.

Why? Owners suggest that the total future value of these payments should be expensed when the players are removed from the roster. Players suggest that the payments should be expensed as they are made. However per the rules of conservatism, the combined non-roster salaries should be expensed in 1984 and the salaries to be paid out in ‘85 and ‘86 should be listed as a liabilities on the Balance Sheet.

Professional sports are bursting with unfair competition and suffering fans due to either the lack of a salary cap or a fortified set of restrictions in the leagues that already have a salary cap in place. A well-structured salary cap will allow professional sports to thrive for years to come. Salary caps must be implemented into professional sports because an equal playing field is enormously important in maintaining the respectable world of professional sports. Plus, all franchises and the fans of those franchises deserve equal chances to win heedless of how big of

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Accounting: Tools for business decision

The 1919 World Series between the Chicago White Sox and Cincinnati Reds was expected to be a blowout in favor of the White Sox. After the Reds emerged victorious, a bribery scandal spread leading to the banning of all eight White Sox players involved. In today’s world a scandal of this sort seems completely unlikely regarding the amount of money professional baseball players earn now. But in 1919 the highest paid baseball player was Ty Cobb earning only $20,000 (Haupert). In addition, the White Sox were owned by Charles A. Comiskey, a nineteenth-century ballplayer known for paying his players as little as possible(Milner). Many professional baseball players of that time only played part time as they had other jobs. They could not support their families with the salary they earned playing baseball. This is what led to players accepting the bribe and agreeing to

With constrains from salary cap every NFL team have to think beside financial incentives to compensate players. Bill Belichick, the New England Patriots coach, altered his approach to incentivize players. He eliminated larger salary gaps among players, as he believed that it is hard build motivation in player being paid $350,000 where as other guy is being paid $10 million.

12. If Phil Makowitz owned 100% of another funeral home that was incorporated as SKT, what difference would that make is your analysis of SK 's ability to switch t the cash method of accounting?

The Sets could argue for part (B) that they pass this test because they count their money once the season starts which leaves them with less than 1/3 of their earnings for the off-season. See …..

"The parties may have a mutual interest in negotiating over the establishment of an NHL maximum salary for individual players. No specific amount is being proposed."

In this paper we will examine the history of the salary cap structures in sports focusing mainly on the version that the NFL uses. We will also take a in-depth look at the four different areas that makes up the salary cap (Salary Cap, Active Spending, Dead Money and Cap Space) and impact the cap has had on the players themselves. As well as how it has reshaped the teams and leagues itself to help the NFL to grow into the Multi Billion Dollar sports empire that it was become today. Who would have thought that making the decision to place a limit upon spending and giving everyone the same opportunity for success would have such a profound effect on the growth and popularity of the sport?

Despite the distribution of this income from moneymaking activity to the individual teams, the league office’s revenue in 2012 was $255MM, which derived from annual dues and assessments. Each NFL team pays approximately $6MM in annual dues to the league office, which supports the operations and salaries of the league office. The additional assessments are repayments from the teams for loans from the league office. Despite this revenue, the league actually shows a net operating loss of $77MM in 2012. The majority of their expenses came from salaries, interest expense and “club related financing”, which was the source of these assessments.

Major League Baseball is the only major professional sport that does not have a salary cap (the maximum in total payroll that a team can pay its players). For example, the National Football League has a salary cap for 2004 of about $75 million and the National Basketball Association has a salary cap for 2004 of approximately $44 million. There are multiple reasons for a salary cap but two of the underlying reasons are parity (equality) and competitiveness. It is assumed that without a salary cap, large market teams such as New York, Los Angeles, and Chicago will be able to ‘buy up’ all the good players leaving the small market cities such as Minneapolis, Cincinnati, and Phoenix with the less-talented left-overs. Additionally, teams that win more games and make the playoffs and World Series receive extra revenue from TV, thereby creating even more of a discrepancy if large market teams have an advantage in winning more games and playing in the post-season.

The differences between the owners, players, exist because they are both calculate the in various ways at a time under the rules by GAAP. The owner’s financials are also accounted because it is a corporation as well. Depreciation, amortization of players might be an issue if the players are in the non-roster list or call off injury. However, whatever ever happens, has to be followed the GAAP rules.

One fact that some part of players’ compensation is not paid immediately in cash. For the highest-paid players, the team agreed to defer their salaries for 10 years. Therefore, it helped them to save taxes and income. Some part of players’ compensation came in signing bonuses to be expensed as incurred. The other issue was that the retired players. They were not on the current roster however they were being paid according to the contract. Owners decided to expense the whole amount in 1984 because they were not active players and not serving to bring in their current revenues.

The research methodology is to divide the teams by their salary means. Then the win means will be compared to determine if there’s a significant difference in production of high salary teams and lower salary teams. 1, teams with larger payrolls, will be defined as teams with payrolls that are average or above average (see chart team A) and 2, teams with smaller payrolls, will be defined as teams with less than average payrolls (see chart team B).