Sports, our favorite thing to watch on t.v when we are bored, sometimes our lives, but some things affect sports. Salary caps have a great impact on sports and their players. A salary cap affects the sport, the players, and the fans. By having a salary cap players might not want to trade teams because of the cap. Salary caps can have a positive effect and a negative. Salary cap on sports can have some impacts on the world. All of us have at least one favorite sports team or one that they like, but some people are all out crazy sports fans. Some people have man caves, gear, and maybe even a shrine devoted to their favorite sports teams. With a salary cap some players might not leave their teams to join your favorite because it doesn’t pay enough. People should be able to spend how much they want on a player or a team. If you have the skill, you should get enough to pay the bills. The key difference between sports and other industries is that competition is the product that leagues sell. …show more content…
Imagine you are a coach of a basketball team and you want to get the best player in the league, you have enough money, but they don’t accept because you’re not paying enough. You can’t pay enough because of the salary cap. You were so excited to get the best player and he would of led your team to the finals, but no you couldn’t get him and now you and your team are sad. Cap proponents claim that parity is necessary to grow fan bases across the country. Those against salary caps argue that a group of firms shouldn’t have the power to collude against labor wages and that salary caps do not enforce league
Anyone who has been involved in an organized sport, whether it is backyard football or a high school sports team, knows that these sports all have organizations that are responsible for setting rules, determining conditions of play, and penalizing individuals who infringe the rules. Some of the organizations like the National Football league and the MLB are familiar to most people, the rules they follow are not generally understood by anyone who is not closely associated with the sport. Most fans and sport critics assume that what is happening inside these organizations are of little concern to them. However, this is not the case. In the MLB, the New York Yankees spend an excessive amount of money every year to obtain big name players. A luxury tax was put into effect for teams that go over the spending limit. However, the Yankees are the only team that pays the tax because they are the only team that exceeds the spending limit. The players, coaches, fans, and I have argued that a salary cap would be the best possible way to allow teams in the Major Leagues an equal opportunity getting to the World Series.
Overall, compelling points exist supporting or not supporting a salary cap in baseball. Teams have the benefit of a salary cap existing, and out of that, a balance in free agency forms and a sense of championship parity develops too. On the other side of the spectrum, teams can use the Moneyball method of recruiting and signing players, along with tax implications and revenue sharing to balance out payrolls. The main factor in deciding if a salary cap is appropriate is the factor of fairness among the teams. Therefore, based off the support the research provides, the implementation of a salary cap is necessary.
Labor market theory is one of the most integral economic theories needed to dissect the inefficiencies in professional sports. Looking first at the type of market these leagues function in, one can see that they do not necessarily meet all the criteria that a competitive market requires. The big four sports leagues in the US have a set number of teams which creates barriers for entry. Only when an expansion is agreed upon by the league, such as NHL has done for the upcoming season, are teams allowed to enter, and even then, it is limited to a maximum of a few teams in recent history. Additionally, the league makes it virtually impossible to exit, as selling of a team is the closest they come to exiting the market. Through
A salary cap gives all the teams an equal chance to sign players. It also keeps teams with a lot of money not able to acquire every all-star they want , or any player who is a free agent. Some Major League Baseball teams like the Anahiem Angels and the Atlanta Braves are owned by very wealthy people and companies. The Anaheim Angels are owned by Disney.(Worisnop, 128) So with no surprise the Angels can produce a team which can be very competitive, and have several all-star players. Just recently they exercised this advantage by signing Mo Vaughn for ninety million dollars over seven years.(Antonen, 2) There were at least four other teams that wanted to sign this all-star, but the Angels easily had the money, and outbid everyone who wanted to sign him. If there was a salary cap in Major League Baseball then the Angels would have thought twice about giving that much money to one player. With the its roster for one year. So giving one player 12.8 million dollars for one year does not really make sense if the salary cap is fifty million dollars a year. That would leave only 37.2 million dollars for the twenty-four other players, which equals each player getting on average a little less than one and a half million dollars a year.
The focus of professional sports has evolved from one of teamwork and camaraderie to one of avarice and greed. The specific problems in recent years that have stemmed off this overwhelming greed include exorbitant salaries, lockouts (or work stoppages) in professional sports, and the growing disparity among team payrolls. Most recognize these issues as major problems; however, others overlook the greed and see validity in the financial aspect of today's sports world. They argue that professional sports are thriving and should not be modified.
Walter, Andrew. "Point: Salary Caps Provide Parity in Professional Sports." Points of View Reference Center. Alabama Virtual Library, n.d. Web. 2 Jan. 2014.
...salary cap will provide an answer for some of the most serious problems facing the NBA. It will lower ticket prices, allow more teams to be more competitive and eliminate the any future lockouts. If these problems can be fixed by enforcing a hard salary cap, I don't see why it shouldn't be done. The NBA should enforce a hard salary cap.
So everybody would get paid fair. While others may say or wrecks family history because if you have generations and generations go to one college than they started to get paid it might wreck that history because they will pick the highest paying one. That is not true though because if salary caps were put in everybody would get paid the same. In summary college athletes should be paid because they are too busy to have a job, the NCAA has enough money and they can put in salary caps so everybody get paid
Money Hurts College athletes attend post-secondary schools in order to receive an education and to participate in sports. “Student athletes participate in an organized competitive sport sponsored by the educational institution in which he or she is enrolled. Student athletes must typically balance the roles of being a full-time student and a full-time athlete” (“Student athlete” 1). Additionally, some people believe athletes should receive a salary. However, paying college athletes hurts the school, the sports, and the athletes.
Many people can easily picture this scene in their minds: the roaring crowds, the smell of easy- to-eat foods, and the thousands of people all dressed in the same colors. That’s a description of game day at a major college. College sports bring in a lot of money, yet their players don’t receive any money. Many people view this as something that needs to be changed while others believe that only professionals should be compensated. In the essays “Let Stars Get Paid” and “College Athletes Should Not Be Paid”, both authors give their opinions on whether or not college athletes should be paid. College athletes should not be paid because they already receive many benefits from being athletes.
The problem with this is the inflation of players' salaries. When players are drafted young, they demand to be paid what they want; teams pay them millions right out of college.
Do you think professional athletes are overpaid? You might think they earn more than what they are worth for playing half a year, but athletes have many things which contribute to their salary. Some of these things include their earnings from endorsements, ticket sales, performance, merchandise, their social contributions, and TV ratings. Although there are many factors that contribute to their salary, professional athletes may be overpaid because as a society, we contribute to their success. So, in the end, part of the athlete’s salary comes from the people who support the sports in the first place.
In 1970, a hotdog costs fifty cents, a pop costs one dollar, a ticket to a NFL game costs fifteen dollars and the average football player made between nine and ten thousand dollars. Jump ahead almost 40 years and a hotdog that cost 25 cents now costs on average five dollars and fifty cents, a pop costs six dollars, a ticket to an NFL game costs 100 dollars and the average player gets paid over two million dollars! Times have changed. Because of all of those price changes, and insignificantly the salary of players, in 1994 the National Football League introduced the first salary cap that allowed owners to spend a certain amount of money on players. The Players Union and the National Football League did this because for one, they were tired of players getting thrown from club to club just being a price and two to make things more equal between the teams. Today, money and fame have made players and owners very greedy and cocky people. Players ask for negotiations when they are making well over a million dollars a year and there are people in the United States that are homeless? That it the biggest reason that the salary cap needs to stay in effect. If the salary cap goes out the window, just like it did this past season, a sports fan can kiss NFL goodbye in ten years from now because there will not be enough money to pay all of the players. There should be a salary cap in the National Football League because it allows organizations to be equal and have a better chance of competing with each other and it may put players in their shoes so they know they can’t have everything they want.
"Money makes the world go 'round." Sports could not exist without the presence of money. You have high paid athletes asking for multi-million dollar contacts, while at the same time you have doctors not even making close to that amount. There are corporations buying out sports teams, buying stadiums, and buying everything that has to do with sports. Someone may ask why they do this. Sports are one of the most profitable industries in the world. Everyone wants to get their hand on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports has drastically changed over the last ten years. In the United States, we spend about 13% of all money on sports and entertainment. Sports has obviously done its job; entertained and drained money out of our pockets.
When addressing the value of entertainment, there is without a doubt, that we as a society value entertainment highly. But there is no reason that these athletes, who are here to merely entertain us, get paid higher wages than those that save our lives and teach us such as medical doctors and teachers. I find it ridiculous that players make millions of dollars a year, and yet demand more. The entertainment that these athletes provide is solely entertainment; it is not essential to the function or productivity of society. If I were to become a professional football player I would not complain about my salary for many reasons. I am playing the sport that I love and getting paid for it. The minimum wage for football is well over $100,000 a year, as is for many professional sports. These reasons by their lonesome are enough to warrant that the salary professional athletes are paid is suffice.