NBA Salary Cap

The NBA makes a profit in many ways, for example the NBA makes millions of dollars off of sponsorships, television contracts and selling merchandise. The National Basketball Association recently signed a new TV agreement with TNT and ESPN to approximately make $2.6 billion per season. Even with a total of 400 or so odd active players making an average of close to $5 million annually, national TV contracts generate enough revenue to cover salaries and then some. This graph depicts league revenue

have salary caps in their organization. Salary caps are meant to keep the league competitive, control cost and increase overall league revenues. Sports that are seen as more competitive and fun to watch will boost tv ratings which will then lead to higher profits from their sales and advertisement. Without a salary cap, big named teams that are popular and successful will have more money for free agency to stack their team, since they can make the best offers. In the MLB there is not a salary cap

What’s more intriguing is the fact that some question whether NBA players are overpaid. Nathan (22) indicated that overpayment in the NBA is problematic. Statistically some players are overpaid based on poor or sub-par performance. These players are highly sought after because they are proficient in one aspect of their game such as three point shooting or they may be a defensive force. However, these same specialized players may be a major liability in other areas i.e., the three point shooter may

how much money should a team spend on their players? Salaries of professional sports players are way higher that the average person. Lately, salaries of players in the National Basketball Association are increasing year after year. Even with a salary cap, teams can now spend more money on highly gifted athletes in hopes to bring division titles and championships to their respective organizations. So does spending more money on player salaries guarantee a winning team? Now you could go into free agency

The NBA is widely regarded as the pinnacle of professional basketball, where players can compete against the best of the best and earn top dollar while doing so. Long-term contracts can be seen as a return on an investment as players need to not only prove themselves to the front office, but also take the risk of trying to become a professional basketball player. The NBA has two draft rounds composed of 30 picks, meaning that every year, only 60 draft-eligible prospects are ensured employment. To

When researching if a NBA franchise has a positive effect on the city it resides in from multiple sources economists mostly all agree there is little if not any impact. “If every sports team in Chicago were to suddenly disappear, the impact on the Chicago economy would be a fraction of 1 percent,” Leeds says. “A baseball team has about the same impact on a community as a midsize department store.” (Bergman, 2015). It would be Easy to believe that a NBA franchise in a city would have a great economic

The article “Ticket Price Determination in Professional Sports: An Empirical Analysis of the NBA, NFL, NHL, and Major League Baseball.” was researched and created by two economists named, Patrick Rishe and Michael Mondello. The basis of this article was to analyze why the prices of tickets tend to vary from city to city within each league and also to provide the reader with information regarding whether ticket price increases are tied to changes in team payroll. Rishe and Mondello created and empirical

reached a 4 year deal with Timofey Mozgov worth 64 million dollars just hours after the beginning of the NBA Free Agency. To be honest, most of us were shocked with the deal and Twitter without a doubt proved the basketball world's shock. Mozgov however, maybe will live up to such a large deal and here are the reasons. A year ago, Mozgov was one of the Cavaliers leading scorers and a key figure in the NBA Finals. His presence and dominant rebounding forced Steve Kerr to implement to so familiar Warriors

League and the National Basketball Association are very alike but different in their own ways. Although both the leagues have contracts, a salary cap, and revenue sharing they are both very different. Both leagues have a championship game game where they score high ratings because of their high market players. Curry and Lebron playing against each other in the NBA finals last year generated ratings up to 19.94 million viewers the most all time other than the 1998 Jordan’s Bulls finals. Brady and Wilson

bold decision as an NBA free agent to take his talents to Oakland, California and play for the Golden State Warriors. Durant had played his prior eight years for the Oklahoma Thunder. During this time playing for the Thunder, Durant has won an NBA Most Valuable Player Award, four NBA scoring titles, the NBA Rookie of the Year Award, and two Olympic gold medals. He has also been selected to six All-NBA teams and seven All-Star teams. Durant helped lead Oklahoma City to the 2012 NBA Finals, losing to