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Social and Behavioral Sciences Commons

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Economics

Senior Projects Spring 2018

Theses/Dissertations

2018

Competitive Balance

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Full-Text Articles in Social and Behavioral Sciences

The Motivations And Effects Of The Nba Salary Cap, Jeffrey M. Goldrosen Jan 2018

The Motivations And Effects Of The Nba Salary Cap, Jeffrey M. Goldrosen

Senior Projects Spring 2018

The National Basketball Association’s (NBA) use of a salary cap to restrict player salaries and team payrolls is commonly seen in other professional sports leagues throughout the world, but it is unique in many ways which affect its efficiency in achieving its alleged purposes. Introduced in 1984, the salary cap was supposed to help the league restore competitive balance, as it theoretically would have prevented wealthier teams from overspending and dominating the less wealthy teams. As time has passed, it has become evident that competitive balance was not achieved following the adoption of the salary cap, and it has been …