In this paper we analyse the impact of a salary cap on a professional team sports league. We concentrate on the competitive balance, on the level and the distribution of player salaries, on owner profits and total league revenue. A simple model shows that a salary cap can improve the competitive balance among clubs as well as the salary distribution among players. We also investigate how the recent individual salary cap in NBA might affect the competitive balance.
机构:
Arizona Sch Profess Psychol, Sport Psychol Programs, Phoenix, AZ 85021 USAArizona Sch Profess Psychol, Sport Psychol Programs, Phoenix, AZ 85021 USA