Salary Caps Don't Work (or Do They?)


The DomPost reports today that the research of a Wellington based analysis firm has concluded that salary caps no difference in the competitiveness of professional sports competitions.

The study followed teams from the past five seasons and looked at their mobility within the league. If teams have a greater ability to move up (or down) the ranks and contest for championships (or wooden spoons), the code is rated higher in competitiveness.

Interestingly, the stufy found that Rugby Union competitions were some of the least competetive. The NZRU is yet to comment.

The study suggests that rather than salary caps, the best way to make a competition more competitvive is a form of revenue sharing where a precentage of ticket sales gets pooled and then redistributed to all teams regardless of the size of their market. This, it follows, helps teams with a small population base more than limiting how much money teams from larger markets can spend.

Here’s how they ranked in terms of competitiveness (salary caps are italicized):

Major League (Baseball)

French Ligue 1 (Football)

Magners League (Rugby)

Primera Argentina (Football)

MLS (Football)

Spanish La Liga (Football)

Primera Mexico (Football)

German Bundesliga (Football)

ANBL (Basketball)

NBA (Basketball)

NFL (American Football)

Dutch Eredivisie (Football)

Italian Serie A (Football)

AFL (Aussie Rules)

NRL (League)

Scottish Premier League (Football)

NHL (Ice Hockey)

Guinness Premiership (Rugby)

Air New Zealand Cup (Rugby)

Super 14 (Rugby)

Currie Cup (Rugby)

National Bank Cup (Netball)

– Henry


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Filed under Basketball, Cricket, League, Miscellaneous, NBA, NBL, News, NFL, Rugby, Rugby league

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