The impact of salary caps in professional team sports

Stefan Kesenne

Working Papers from University of Antwerp, Faculty of Business and Economics

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.

Pages: 13 pages
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https://repository.uantwerpen.be/docman/irua/ab5def/1c469ed6.pdf (application/pdf)

Related works:
Journal Article: The Impact of Salary Caps in Professional Team Sports (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:1999026

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