Salary Cap Research Paper

It is said having a salary cap in the NFL creates a competitive balance but there is no evidence to suggest that it does. Weather it does or does not is solely the opinion of the individual. Players’ salaries are the largest operating cost component for teams so the cap limits the organization on how much can be spent on an individual player. The salary cap creates a competitive balance by not forming a monopoly effect within the league. Making sure that a single organization does not own nearly all of the market. It also reduces costs for owners and promotes higher profit. For example, if two teams wanted one player in particular and there was no salary cap then they would keep on outbidding one another until one owner reaches their personal max. In an interview with Steve Bisciotti, owner of the Baltimore Raven he explains that having a salary cap creates competitive balance. He mentions that Jerry Jones, owner of the Dallas Cowboys makes more money than his because of their organization being in a bigger city, state, and …show more content…
The competitive balance it gives the league is the fair opportunity for every organization to feel like they have the chance to win in every single season. This is why you have seen teams go from first to worst or the other way around in their division because of the competitive situation of the salary cap. The salary cap ensures competitive balance by making sure no team outspends another. The success and failures of the team ties into how the organization processes and control how they apply the resources. Thirteen different teams have gone to the Super Bowl since the start of free agency and a salary cap. In the eight years before free agency and the salary cap was put in place only eight different teams had reached the championship