Salary Cap Vs Football Research Paper

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?

The four major professional sports in America are MLB, NBA, NFL, and NHL. Out of those four, only Major League Baseball does not have a salary cap. A salary cap keeps players salaries from getting to high because of the need to get your whole team under a certain dollar amount set by the league.

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.

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

Furthermore, top players gain exposure that will land in endorsements and contracts when they go pro. The problem is that only top players will have their careers taking off. What happens to the other athletes who have dedicated their time and effort to the sport? There are just too many athletes, and not everyone will get a contract. Therefore, to make sure that players have some form of income, the NCAA should pay the athletes a certain amount of money.

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.

With the first pick in the 1979 the Edmonton Oilers select Wayne Gretzky. Wayne Gretzky is traded to the Los Angeles Kings (1988). Wayne Gretzky traded to St. Louis Blues (1996). Wayne Gretzky traded to New York Rangers(1996). Wayne Gretzky was one of the greatest hockey players of all time. But he could not be branded with a specific franchise because of his salary and the salary cap placed on teams made it impossible for Gretzky to stay with one team. Not only that he also had to move and his family would follow along. The NHL needs to increase the salary cap. This would allow players to get paid more, not get traded because they get paid too much and become a franchise player.

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.

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

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.

eves that college athletes are already paid, not with money but with education. College athletes don’t have to worry about student loans, paying for textbooks, the cost of on-campus living, and meal plans, which is a huge advantage. Even though they’re college students that doesn’t mean they will be responsible with their money. Besides there are plenty of of athletes in college that would love to still play the sport they are very much dedicated to, even if they’re not getting paid.

As of today, there are over 460,000 NCAA student-athletes that compete in 24 different sports while in college throughout the United States (NCAA). Over the past couple decades, the argument for paying these college athletes has gained steam and is a hot topic in the sports community. However, paying these college athletes is not feasible because most universities do not generate enough revenue to provide them with a salary and some even lose money from the sports programs. These collegiate student-athletes are amateurs and paying them would ruin the meaning of college athletics. Also, playing college sports is a choice and a privilege with no mention or guarantee of a salary besides a full-ride scholarship. Although some argue that

The cause of the dispute stem from many reasons but here is the top three starting with; 1) the salary cap which is the limit NBA teams can spend on salaries 2) is salary cap exceptions meaning allowing teams to exceed the salary cap if a player meets certain criteria and 3) basketball related income which is extra income for the players by being involve with other agreements such as broadcast rights, sponsorships, gate receipts, merchandise sales etc. The players earned 57 percent but the owners are demanding that the number come down.

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

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.