Research Publication Title

Does Income Inequality In the NFL Affect Team Performance?

Major

Economics

Faculty Mentor(s)

John R. Swinton

Abstract

In the NFL, players are paid based on their output on the field. Money left after paying big salaries for top players is invested in less valued players that superstars can hopefully use to win with. These uneven salary distributions could be the reason why some teams have unsuccesful seasons. A salary cap puts a limit on the amount of money a team can spend on its players per season, thus creating a more even distribution of talent among all NFL teams and therefore making the game more competitive. With a salary cap, teams are forced to allocate their resources more efficiently and choose the best combination of talent in order to build a team that will maximize wins. The more a team wins, the greater their overall franchise is worth, thus increasing profitability. The careful distribution of a team's salary cap to its players is directly correlated with a team's ability to thrive as a franchise.

Start Date

10-4-2015 9:00 AM

End Date

10-4-2015 10:00 AM

Location

HSB 300

This document is currently not available here.

Share

Import Event to Google Calendar

COinS
 
Apr 10th, 9:00 AM Apr 10th, 10:00 AM

Does Income Inequality In the NFL Affect Team Performance?

HSB 300

In the NFL, players are paid based on their output on the field. Money left after paying big salaries for top players is invested in less valued players that superstars can hopefully use to win with. These uneven salary distributions could be the reason why some teams have unsuccesful seasons. A salary cap puts a limit on the amount of money a team can spend on its players per season, thus creating a more even distribution of talent among all NFL teams and therefore making the game more competitive. With a salary cap, teams are forced to allocate their resources more efficiently and choose the best combination of talent in order to build a team that will maximize wins. The more a team wins, the greater their overall franchise is worth, thus increasing profitability. The careful distribution of a team's salary cap to its players is directly correlated with a team's ability to thrive as a franchise.