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Are Salary Caps really working or a myth??

MeanBunny : 1/23/2023 6:54 pm
Baseball and revenue sharing is vaguely a cap. A lot of money comes from media rights etc which is not shared.
Yankees continuously outspend and come up basically empty considering the $$ spent and performance. They have a fan base at least. Oakland A's were fielding a competitive product but have no other ways to make money except continuously sell assets. 5-1 or 3-1 spending differential between teams.
In NFL, are caps working or is it all myth like rent control?
If teams like the Giants and the Cowboys  
BlackLight : 1/23/2023 6:58 pm : link
could spend to their hearts' content, the NFL would look very different.
I don’t see the value of salary cap.  
Giant John : 1/23/2023 7:05 pm : link
May the biggest spender win. That would be fun to watch.
RE: I don’t see the value of salary cap.  
section125 : 1/23/2023 7:08 pm : link
In comment 16010979 Giant John said:
Quote:
May the biggest spender win. That would be fun to watch.


and watch Green Bay fold....that ain't happening.
Yes in that in the NFL  
Giantimistic : 1/23/2023 7:10 pm : link
Any team has a shot each year.

No in that it is hard to keep all your homegrown talent. Teams change so much year to year.

I would like teams to be able to sign their own without impacting the cap. Also, the cap does not take into account different tax rates—however the Miami teams are not running away with the best teams each year.
It’s definitely working for the NFL  
giantBCP : 1/23/2023 7:10 pm : link
With the continued growth of the league, I don’t see how you can argue against it.
RE: RE: I don’t see the value of salary cap.  
Scyber : 1/23/2023 7:15 pm : link
In comment 16010983 section125 said:
Quote:
In comment 16010979 Giant John said:


Quote:


May the biggest spender win. That would be fun to watch.



and watch Green Bay fold....that ain't happening.


Green Bay would only fold if the revenue share was removed. They would just be less competitive if the cap was removed.

Revenue sharing was introduced in the 60s. The Salary cap was introduced in the 90s.
Caps are actually beneficial for players  
Gary from The East End : Admin : 1/23/2023 7:23 pm : link
In large part because salary caps allow for salary floors and a guaranteed percentage of revenue for players.

In the MLB you have a lot of teams that just pocket the revenue sharing and don't spend on players. It makes sense for them because the ROI for putting money into the team is just not there.

SO MLB players, as a whole, get a smaller cut of the revenue than any other major sport.
RE: Caps are actually beneficial for players  
pjcas18 : 1/23/2023 7:31 pm : link
In comment 16011000 Gary from The East End said:
Quote:
In large part because salary caps allow for salary floors and a guaranteed percentage of revenue for players.

In the MLB you have a lot of teams that just pocket the revenue sharing and don't spend on players. It makes sense for them because the ROI for putting money into the team is just not there.

SO MLB players, as a whole, get a smaller cut of the revenue than any other major sport.


I have read the opposite. It's hard to get exact numbers since MLB revenue is not public AFAIK, but MLB actually pays the highest percentage of revenue to the players (potentially).

Here is one source:
Quote:
New NFL Deal

Under the terms of the new CBA, the players would receive a guaranteed 48% of revenues in 2021. This number would increase to 48.5%, via a "media kicker", for any season that includes 17 regular season games (an increase from the current 16 regular season games).

NBA Deal

Under the terms of the current collective bargaining agreement, players will earn "no less" than 49% of basketball-related income (BRI) and no more than 51%. The collective bargaining agreement maintains a 49-51% "band" in order to account for years when the league falls short or exceeds its revenue projections.

Basketball related income includes a number of different revenue sources, including regular season ticket sales, premium seat licenses, national broadcast rights and more.

MLB Deal

These numbers are hard to come by, as Major League Baseball keeps its books closed.

According to reports that have not been disputed by Major League Baseball or its players, players typically receive between 48.5% - 51.5% of total revenues, and this has been the case for more than a decade.

Some people argue that the number is closer to 54-55% if all player benefits are included.

NHL Deal

Hockey-related revenues are split down the middle, 50/50.

If player salaries exceed 50% of revenues in a given season, escrow money is withheld by the league to even things up.

Hockey-related revenues include ticket sales, broadcast deals and more



and another (before the 17 game season):



.  
Del Shofner : 1/23/2023 7:37 pm : link
"working" - for who? The owners? The players? The fans?

Seems like it's working for the owners and some of the players (not all). The fans, I don't know. I liked the '80s Giants with LT, Carson, Banks, Reasons, Headen and Hunt all at LB - not sure you could do that today.
they work in the sense that they make the leagues more competitive  
Eric on Li : 1/23/2023 7:42 pm : link
more competitive leagues = more entertaining leagues
more entertaining = better ratings, more fans, more $

so if you're a fan they work.
if you're a small market team with lower revenue who wants to compete they work.

for players the dynamics of what they get paid are not really salary cap specific as much as value over replacement specific (and a result of their CBA priorities).
Parity is what makes the NFL the country's most popular sport  
markky : 1/23/2023 9:26 pm : link
the Maras were a big part of that. they saw the potential and pushed for parity.

I believe (IMO) that this might stem from the Bears bailing them out by playing the game in the Polo Grounds with Red Grange when the game was originally scheduled to be played in Chicago in 1925. Without that gesture the Giants might have gone under.
Just talking nfl of course  
Earl the goat : 1/23/2023 9:26 pm : link
There should be a QB salary cap and then a cap for everyone else
I’ve heard and read from outlets I trust  
djm : 1/23/2023 9:40 pm : link
The cap is more for the teams to spend enough not necessarily to curtail big spending. It’s a thing, it’s not everything.

The evidence is there to support this. Teams kick the can down the road all the time. Especially winning teams. Eventually you have to adhere and it can and will be painful, but it’s not the annual hard line in the sand…

People hate this take and I’m really not sure why. It’s not even a hardline stance. It just allows for the nfl salary cap dynamic to contain some nuance and wiggle room.

And the cap  
djm : 1/23/2023 9:42 pm : link
Probably keeps the insanely wealthy owners from spending stupid money. One would have to believe that most owners have their own cap and had their own cap prior to 1994. Then you have guys like Jerry Jones and maybe a couple of others…
The cap is mostly nonsense  
Producer : 1/23/2023 9:42 pm : link
If a team really wants a player and is willing to spend the actual dollars to pay him, they can make the cap work, via restructures, cash over cap and voidable years.

teams have real decisions to make regarding the actual dollars they pay players. The cap is mostly accounting.
RE: Just talking nfl of course  
sharp315 : 1/23/2023 10:28 pm : link
In comment 16011113 Earl the goat said:
Quote:
There should be a QB salary cap and then a cap for everyone else

I've read about this elsewhere, cant remember exactly but maybe The Athletic or PFF, and I think it would be an interesting idea. Allow teams to pick 1 player, probably the QB, to exclude from the 'team' Cap. The thing I read was saying just let ownership pay whatever they want out of pocket. A mix of both worlds. If you think Mahomes is worth $1 billion then go for it.
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