The Impact of Salary Caps in Professional Team Sports

Stefan Késenne

132 citations0/0 files storedScottish Journal of Political Economy

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Sports Analytics and Performance Merger and Competition Analysis Game Theory and Voting Systems

Abstract

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.

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2009Theory of the Perfect Game: Competitive Balance in Monopoly Sports Leagues 2021The impact of COVID-19 on the European football ecosystem – A Delphi-based scenario analysis 2005The Short Supply of Tall People: Competitive Imbalance and the National Basketball Association 2010THE COMBINED EFFECT OF SALARY RESTRICTIONS AND REVENUE SHARING IN SPORTS LEAGUES 2015The Economics of Professional Football Revisited 2011Some Comparative Economics of the Organization of Sports: Competition and Regulation in North American vs. European Professional Team Sports Leagues 2014UEFA financial fair play: the curse of regulation 2009Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel

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