Basketball Salary Cap Case Study

Business matters will never be an easy process to keep things functioning in a positive direction. Whether risk taking approaches spark trickle down effects or upward gains, he who steers the wheel should always know that nobody is bigger than the organization itself. Of course, pinching pennies will always save you a buck or two, but when it comes down to paying top employees, the “Benjamin Franklin’s” will always be up the ladder. In the NFL, one of the key aspects for an organization is to shape up their salary cap for the betterment of sharing the wealth through their roster and to ease things up to make long term investments on franchise talents.

A salary cap also takes money out of teams pockets keeping them rich. Football is a much more work intensive sport than baseball but football players are paid less when they should earn more because of the chance in injury. Johnny Knox was a player for the Chicago Bears and he retired from football because of an injury that paralyzed him and he was earning about a million dollars a year. Without a salary cap he’d have earned more money and might have been able to afford a doctor to let him play football again.

Are they serious! I mean who does that! I bet you wondering what I’m talking about huh? Well I’m talking about wages in the WNBA and NBA. Have you seen those numbers NBA players get 50% interest and WNBA players get 33% interest? Oh yeah that’s a big difference. I guess because NBA get so much popularity and TV time they get paid more and I think the more tickets the WNBA sale the more interested the players will get. But that still don’t make sense let me give you an example in the next paragraph.

The second and largest aspect of the White Settlement involves the salary cap. The cap represents a specific amount of money which can be spent on player salaries will be a defined percentage of the defined gross revenues (Mavris). This will create competitive balance across the league because it will force all teams to abide by the same cap ceiling. Regardless of a teams value or demographic all teams will have to spend the same amount on player salaries.

Anthony Davis vs POR ($11,600) - The Blazers allow the most points per game in the league and allow the most fantasy points in the league to power forwards. Sounds like a dream matchup for AD. Then throw in the fact, the Blazers haven’t looked good of late and the Pelicans have looked better with Jrue Holiday..

The debates have gone on every sense the very first year free agency was introduced. I think after all this paper is done I truly believe that I will be able to show you evidence on why salary caps are truly unfair. So let 's have some facts that prove my theory with facts from their lives. Most coaches can look at talent and see potential at such a young age. When coaches see this they push Athletes to the next level making them ready for the college. That’s why you see kids pushing themselves so hard in the gym, they think they can make it to the league. Look at it this way, in all sports except baseball, the chances of going pro are less than 2%. So why pay these guys what they worked their whole entire life for get paid, they honestly deserve it.

According to Dan Oleary, “Since baseball is the only major sport without a salary cap, and with the way baseball’s big-spending teams throw around money, having a different winner each year seems to defy logic” (OLeary). A salary cap is issued in every professional sport’s franchise, excluding Major League Baseball. With no salary cap, one club can dominate it’s competition on money alone. The New York Yankees spend the most money on it’s players each year (Goldman). It is no coincidence that they have won the most World Series of any other club in baseball history (Wikipedia-World Series). Not only have they won the most world championships, but they are a consistent contender for the American League title year after

The ethical pressure that each side used to prevail this dispute was opting out of the CBA that was put in place in 2011. The NBA and the NBAPA were ready to speak about revising the terms on issues such as roster size and player salaries and to make sure no threat of another lockout would take place. To make sure that both sides had enough time to review the new CBA and vote the deadline was extended. With a new CBA in place the NBA will continue to operate the same but both sides targeted areas that needed to evolve. Such as the average player salary is expected to be $8.5 million next season and negotiations are being talked about for $10 million by 2020-21 season. The new rule allows franchises to keep control of prospects they intend

Many players might say that it is the leagues and owners fault for some of the outrageous salaries being paid, but when the league tries to control the problem, the players are against any of the suggestions they have. The current salary cap, called a "soft cap", lets teams spend $27 million a year on player salaries (Donovan, John "NBA"). The problem is that under current rules, there are too many loopholes a team can use to go well over the limit. One of these loopholes is the Larry Bird exception that grants teams the ability to resign veteran players without it counting towards the salary cap. This is why teams like the Chicago Bulls can pay Michael Jordan ($33 million last year) more than 17 teams pay all of their players combined. The rule was originally designed so that a team could keep important veteran players and still have money to sign new ones. This rule has now been misused so much that teams are paying players $100 million plus over a 4-6 year period and say they are just using the Larry Bird rule.

Hassan Whiteside vs NYK ($9,100) - This could be a huge night for Whiteside.The Knicks are allowing the most fantasy points to centers in the league. Plus, Whiteside has posted 50+ fantasy points in three of his last four games.

In the 2011 season, Derrick Rose of the Chicago Bulls and the NBA’s reigning Most Valuable Player earned just $5.5 million because of the salary scale restriction in place. His team however earned an estimated $169 million in profit (ESPN). With the NBA signing a new $24 billion deal with Disney and Turner, to start in 2016, the idea of a marquee player getting paid so little should soon be an afterthought in the NBA. Teams are expected to make much more in revenue because of the deals. TV deals of such magnitude would not be possible without the talent and the hard work of the NBA players who fans tune in to watch. NBA players are unacceptably underpaid in the current salary cap system and a players overall value to a franchise is often distorted.

Athlete salary caps are not fair because they should get the money that they work for. Sports player’s work for the money that they earn by sacrificing there blood, sweat and tears. There are many professional athletes that should be getting paid more than they are due to the abilities they can do. Before salary caps came into place the major leagues had reserve clause. This meant that the players could not negotiate with other teams about a contract to play. The player’s did not agree with the clause, so they argued and the owners did too.

The argument whether professional sports teams should have salary caps remains to be a contentious topic. A salary cap is an upper limit on the amount that employees in a particular company or industry can be paid (English Dictionary). In sports, a salary cap is used to limit how much a team can spend on player salaries. If a team exceeds the salary cap amount, they will be penalized with fines (Zegers). Professional sports teams should have salary caps to establish fairness throughout the league and increase revenues for each of the teams and their owners.

What if I were to tell you, you could make over eighty million dollars in one year? Although that number may seem astronomical to some people, there are in fact people making that much money; and quite a few of these people are professional athletes. There is such a huge market for professional sports and some of these teams have really made it a priority to grab the attention of the best athletes in their sport. A good way that the league's manage the madness in the market, is they have specific salary caps in place. A salary cap is a guideline that is in place that limits teams on how much they can pay their players. A salary cap can either be implemented by the league with little to no player input, depending on the league; or it can be heavily impacted by the players union. Although many leagues have salary caps, some do

In today’s society many will argue whether or not professional athletes are overpaid. In the present time athletes are being paid phenomenally large amounts of money for their entertainment. It is my claim that all professional athletes are overpaid because they do not offer society an essential function that improves or enhances our world in comparison to other professionals such as medical doctors, lawyers, and teachers. Society does not value entertainment enough to warrant such high salaries such as those of many professional athletes. There is no reason that these athletes should demand these tremendous amounts of money. This is why you have to put into question their reasoning for demanding