Salary Caps in Pro Sports - the Cost of Players vs Owners
Salary Caps: the NFL has one, the NBA has one, the NHL now has one all that is left is for the MLB to install one. The basic premise of the salary cap is to ensure that owners of a team are not gouged by the ever-increasing costs of players for the respective sport. Albeit the fact that there are loopholes in salary caps, like just about any other business endeavor, the cap is a great way to control rising player costs as well as a manageable system to draft and recruit players. Currently there is only one of the major sports that North America enjoys that do not use a salary cap. That sport being the MLB, considering however the collective bargaining agreement runs out in December 2006, one can surely bet that there will be serious talks towards the cap. There are some insane payrolls in the MLB, and if they are not curbed and the entry level pays lowered owners will surely find themselves in quite a dilemma. There are basically two types of salary caps that are currently employed in professional sports, the Hard Cap, and the Soft Cap. Many people that are not particularly familiar with caps in sports would easily wonder why have two different types of cap? The difference between the two caps is generally laid out in variation of the sports that they govern. A soft cap for example allows for certain exceptions to the cap, which allow for the going over the cap, under particular circumstances. This is the cap that the NBA employs. The cap can vary from team to team due to their needs. The NFL carries a hard cap; this type of cap cannot under any circumstance be run over. Many players are completely against a salary cap, and for obvious reason. What the cap basically does is limit what the player can make on a payroll. The owners however, are elated over this system, as it keeps money from falling out of their pockets on a regular basis.
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