Salary Managment Who Needs It

Before 1984, there was no such thing as a salary cap or any form of salary management system. Today, every major sport has some version of a salary management plan. There are three different branches of salary caps: hard salary caps, soft salary caps, and luxury taxes. Hard salary caps have the strictest regulations. This specific type is not in use today, as it was in the past. Hard caps have no loopholes in the system, and in no way can the system be exploited. On the other hand, soft salary caps have circumstances where the cap can bend. For example, in the National Basketball Association (NBA), “the soft salary cap allows a team to sign a replacement for an injured player at up to fifty percent of the injured player’s salary without this additional salary counting again

Some sports have adopted alternate methods of controlling the salaries of the athletes, and how much a team can spend. Two sports which have adopted alternate policies are baseball and hockey. Baseball doesn’t have any form of salary cap, although it does have a luxury tax on teams spending over the league’s set amount (Staudohar 8). Although a salary cap was never implemented in Major League Baseball, there was talk of a cap. League officials and owners predicted that a salary cap would allow lower budget teams to be able to pursue better quality players that were usually drawn in by larger income franchises (Staudohar 9). These talks and ideas were greatly considered, but were never put into use. “In 1976, the average salary of a Major League Baseball player was $51,000. That jumped to $412,000 by 1987 and is well over $1 million today” (Bryjak 69). With that large of a salary increase, it is believed that a MLB salary cap could be in the near future. Hockey, along with baseball, had adopted the luxury tax. The National Hockey Leagues Players Association approved this tax during a 1992 strike. These players were on strike because a new salary cap was approved. The strike lasted for 10 days. On the 11th day the cap was voted out and a luxury tax introduced (Staudohar 9). This put potential limits on the amount a team could spend on one player, and added a penalty, not a cap. With NHL salaries averaging about $1 million dollars per player, te

Some topics in this essay:
Hockey League, Players Association, Management Salary, NFL NFL’s, League Baseball, Association NBA, salary cap, Los Angeles, salary caps, salary management, luxury tax, form salary, soft salary, baseball hockey, Major League, National Hockey, hard salary caps, cap calculated, national hockey, salary cap calculated, staudohar 9, soft salary caps, major league baseball, salary cap staudohar,