Tom King's Salary Cap In Professional Sports

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

There is a dearth of empirical literature regarding the topic of NBA player salary determinants. Whereas there have been some articles written on NBA player salary discrimination, the lack of empirical evidence as it relates to player performance and its impact on player salary have been virtually non-existent. This investigation serves to contribute to the paucity of empirical literature regarding NBA player salaries. Wage fund theory was chosen to guide this study. According to this theory, wages are determined by the amount of capital available to pay workers. As capital increases so do worker raises. This theory has a direct correlation to the NBA salary cap. The salary cap is comprised of Basketball Related Income (BRI) which consists of revenue generated from ticket sales, national and local broadcast deals, in

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.

According to Tom Van Riper he states “ A top notch football or basketball recruit isn’t just getting the competitive experience he needs for launching a pro career. He's gaining exposure that's bound to pay off in endorsements and a nice contract the moment he turns pro.”(text, line 25). Now a days football or basketball recruits are not just gaining experience but will get them a nice contract when they turn pro. This is also means if they perform well in college sports, they will end having a pretty good contract. “ Most

The NFL continues to remain the most lucrative professional league. According to Forbes Magazine the NFL’s 32 teams are worth on average, $1.7 billion, which is more than any other sports league. In contrast the world’s top 20 soccer teams have an average value of $976 million. The NFL has been successful despite the severe brain injuries that have been suffered by the athletes of their sport. Even though they continue to generate billions of dollars each year, the NFL is in danger of losing

Players that are in the pros make the big bucks. Some of the top notch players in each sport make millions and millions of dollars. For instance Albert Pujols plays baseball and is arguably the best player to play the game right now and signed a 9 year contract that is worth over 200 million dollars! Football fight to get bigger salaries because they feel the need to get paid more since they have a greater risk of getting injured. Baseball the players don’t argue as much as football players when it comes to salary.

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 National Football League (NFL) or as some people may say, “Not for long” is responsible for some of the greatest athletes. Excellence appears to be their one goal, which is to win Super Bowl championships. Some players perform at a high level for a while, whereas others don’t have a chance at experiencing actual playing time on the field at all. NFL players are less and less likely to have a definitive long-term career in the NFL. On average their career may span for about 3 ½ years (Stradley, 2011). (Workman Pub Co, 2002) The NFL has added several new teams, provided innovative equipment, additional rules, distinctive

contracts. Solutions can be found for collegiate athletes to be paid such as, giving them just

He gets paid $7 million dollars, not the highest on the team. Eric Gordon, who is nowhere near as good as Anthony Davis gets paid $15 million dollars. (Smith, Steven A. "No Matter How Much They Make, The Best Players In The NBA Are Vastly Underpaid." FiveThirtyEight. 2015. Web. 21 Jan. 2016.)I think the best player on every team should be paid the most. Not the third or fourth best on every team should be paid the most. Tom Brady, Super Bowl 49 MVP. Got paid less than his Tight end who hasn't won an award in his career yet when Tom Brady has won 5 awards. 3 Super bowl MVP and 2 League MVP. (Smith, Steven A. "No Matter How Much They Make, The Best Players In The NBA Are Vastly Underpaid." FiveThirtyEight. 2015. Web. 21 Jan. 2016.) If you have won your team 3 super bowls, you should be paid the most. The person who has won 1 award. Aaron Rodgers the MVP of the National Football league in 2014 was getting paid $11 million dollars. Randall Cobb a 2nd string wide receiver got paid $20 million dollars. (Smith, Steven A. "No Matter How Much They Make, The Best Players In The NBA Are Vastly Underpaid." FiveThirtyEight. 2015. Web. 21 Jan. 2016.) If you are a second string wide receiver is getting paid more than your MVP quarterback. Than that is bad for your

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.

Whether it be baseball, football, soccer, or basketball, sports are appreciated not only in America, but all over the world. One of these sports that is particularly popular in America is Football. The immense crowds of people who sit at a stadium or on the couch to watch a game never fail to recognize every single play on the field; however, many fans pay little to no attention to one of the most important components of the game, the player-association relationship. When signing a contract with an NFL team an NFL player is effectively dedicating his life to his new organization. His duty is to play for his team in order to make the organization money, and money they make. In the NFL last year “each team received $226.4 million” (Brady 1).

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.

Like Berri and Krautmann, I do not believe that a player shirks after signing a long-term contact, even though they receive guaranteed income and job security. One of the biggest reasons why I believe shirking does not arise is because team contracts often contain various performance dependent compensation that serves as additional income if the player meets expectations. Therefore, this additional contingent income can be seen as the opportunity cost of shirking because if a player shirks, the dip in productivity may prevent them from meeting these contract clauses and they will end up relinquishing these extra earnings. For example, New Orleans Pelican star Anthony Davis signed a maximum contract valued at $145 million in 2015 which contained a clause that required Davis to either be named the NBA MVP, be named an all-star starter, or make any of