Answers are grounded in this paper and cite their sources.
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.
No takes yet. Share an insight, caveat, or question.
Stefan Késenne (2000) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: