NFL Salary Cap Analysis

Salary caps are a very important tool used in professional sports. All 4 major professional sports leagues in the United States have a salary cap installed into their collective bargaining agreement between the league and its players. Those four major sports are, the NFL, the NBA, the MLB and the NHL. A salary cap is defined as s an agreement or rule that places a limit on the amount of money that a team can spend on players' salaries. It can be as a per-player limit or a total limit for the team's roster. It is basically put in place to help the small market teams stay competitive. It is meant so the wealthy teams, also called big market teams, does not always stay dominant by signing the best players to very big contracts. Salary caps are

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.

A salary cap is designed to keep player salaries from increasing at the rate they were at the time. The salary cap is basically a set amount of money that each of the NFL's 32 teams is allowed to spend on player salaries for any given year. Since salaries have continued to grow at a rate outpacing the salary cap, teams have found ways to get around the cap. One way is signing bonuses, which don't count toward a team's cap for a given year. A player who receives a signing bonus gets more money for that year than his recorded salary, this way it leaves more room in the cap for the other players. The advantage for the player is that all signing bonus money is guaranteed to be paid, whereas an NFL contract is not guaranteed. All players receive a minimum base salary. The base salary is the value according to his contract. The cap value represents the player's calculated signing bonus, plus salary and other bonuses for the season.

When it comes to monopolies you need to have a great amount of power. The NFL uses its power in many ways one-way is how they treat the players. In the draft system, a player has to

NFL players get paid $420,000 a week. They get paid about 135 million dollars in 5 years. You buy your tickets and are looking for the place you get to see. The crowd is roaring inside the big stadium. The smoke is rising as your favorite football team walks out onto the field. Football is a fun sport to watch, but the football players are getting paid too much.

Fran Tarkenton paints a clear picture of what the NFL would be like, if it were run the same way as the Public education system. As he describes how in the NFL, each player is payed more according to their performance, and how if such incentives were gone, they would lose the drive to stand out. You can see very clearly, and understand what he means.

Forbes says “If payment begins and there is no cap, the bidding war among colleges for some players will be hard to control. Are people ready for the few colleges with the financial resources (which would be ten to twenty schools) getting virtually all the best football and basket players? (Forbes) With pay to the coming to the student the want and drive to play in the NFL. There would not be any incentive to play in the professional league, when they are making good money in the college level. College is an amateur sport and should be treated that that way and not glorify the students athletes.

There are five major sports leagues in the United States; Major League Baseball, Major League Soccer, the National Basketball Association (which has what is known as a “soft salary cap), the National Football League, and the National Hockey League. Of these five, only baseball lacks what is known as a salary cap. A salary cap is the upper limit of the combined salaries for a team’s players. In the other four sports I mentioned, having to work within the boundaries of a salary cap is a balancing act, to gain an advantage at one position requires you to be at a disadvantage at another position. For example, to have a top tier quarterback in the NFL like Tom Brady or Aaron Rodgers and the large salary they command, a team might lack the funds to sign a top tier linebacker or cornerback. With Major League Baseball lacking a salary cap, this balancing act vanishes and teams could sign anyone and everyone they wished. This causes a competitive imbalance that is hurting the sport. Too often we see the same teams making the playoffs and winning championships like the San

Imagine a person fresh out of college getting fined thousands of dollars. This happens all of the time in the NFL. The bad thing is they’re not even breaking the law. Players are breaking the rules in the NFL and get fined. The reason behind all of this is to keep a fair game between the franchises. Yet these people make thousands and thousands of dollars anyways. Does fining even make a difference to them anyways? Some say the NFL fining its players is a good thing.

While growing up in the state of Texas I was introduced to National Football League (NFL) at a very young age. Not only was I obsessed with great players like Emmitt Smith and Michael Irving, I had a more finical appreciation for the lucrativeness associated with the NFL. My young adulthood as well as my teenage years was spent playing and learning football with the aspirations of hopefully making it to the NFL. Unfortunately, my playing days ended with tryouts at Texas Tech University, but my love for the game has remained stagnant over the years even till this day. The NFL today is Americas most watched sports league and has taken the crown as the most lucrative and unique economic force in sports. Forbes offered approximations stating that on average, the NFL generates more than $6-9 billion a year in revenues alone. A third of the individual franchises in the league were appraised at over more than $1 billion while the other franchises average nine figures or higher. The NFL as an organization generates its revenues through a multitude of ways ranging from huge television contracts, in-stadium ticket sales, advertising ads paid for by sponsors and merchandise. Their business model unlike most other leagues, is centered on a hard salary cap on player contracts which provides cost certainty with its sponsors. In this paper, I will examine the economic and historical narrative associated with the growth of the NFL’s

The pie should be split more in favor of the players as there are only 32 owners but there are 1,696 players who are on active rosters each week. So the players split their portion of the revenues with more people and they need a large slice in order to give each and every player a taste of the billion-dollar business that the NFL is.

Universities and the NCAA make a lot of money off the likeness of college athletes, however these athletes get no form of physical compensation. The NCAA claims to be a nonprofit company, but in a reality they’re a multi-billion dollar industry that is comparable to professional leagues such as the NBA and NHL, due to their players’ ability to entertain and perform to their fullest extent at all times. Over the 9-month 2013-2014 NBA season, the league grossed $4.7 billion, with athletes averaging $5 million salaries. In contrast NCAA Basketball grossed $2 billion over a month long tournament. Despite this staggering figure, the athletes received no compensation. In 2011 the NCAA signed a historic television deal with CBS and Turner Broadcasting,

Salary Cap will also affect motivation of the players if they do not get what satisfy them. They will be majorly playing towards maximizing their wealth rather than wining and keeping the spirit of the game alive.

Two of the three highly controversial arguments with NFL players is league minimum pay and guaranteed money in contracts. Being that all money in an NBA contract is fully guaranteed, and in an NFL contract it is only partially guaranteed. For example, Colin Kapernick signed 110 million dollar cotract extension over six years, which would seem bigger then Draymond Greens new 5 year contract of 85 million dollars. Except that Colin Kapernick is only guaranteed 61 million dollars, compared to Draymond Green who is guaranteed all 85 million dollars in his contract. The NBA’s rookie salary is bigger then the NFL, With NBA starting salary being at 525,093 dollars and the NFL starting salary being at 435,000 dollars. Even in the veteran category the NBA salary beats the NFL, with

If I could pay someone $25 million a year to get him/her on my team and generate $30 million, why not hire that player? The salary cap for the NFL is $102.5 million per team, and we currently have 32 teams, so we the public are paying 3.28 billion to those teams. Currently America is in a 11 trillion dollar debt, if athletes could get paid $150,000/year then we could save 1 billion dollars a year. The monetary worth of athletes exceeds the value that any one individual is actually worth. League officials should be using salary caps, negotiations, and legal tactics. Athletes' salaries are in increasing problem for the economy of our modern world. Although the sports have their own equal distributions, the overwhelming salaries of the leagues' highest paid players have made the average of salaries higher and higher each year.