SALARY CAP - Research Paper Example

In order to address the problem that occurs as a result of placing the salary cap, players union had came up with measures to negotiate for the welfare of players in a team to ensure that a the teams do not infringe the rights of their players (Rosner & Shropshire, 2011). For example, players union has put forth collective bargain agreement to negotiate with the Nation League on the amount of salary that each team should spend to their players. The aims of collective bargain agreement is to ensure that the National Federation league become more competitive.

In addition, the salary cap helps to ensure that there is harmonization of salaries among different teams. This further prevents migration of players from one team to the other. Additionally, salary caps helps to ensure that each team retains the right talent and skill among its players. Moreover, the salary cap helps to prevent inequality among organizations sponsoring different players. For example, if there are no salary cap some teams could be spending quit a lot of financial resources to fetch the best players from other teams but through salary cap such events may be prevented (Bryant, 2009).

The benefits of putting in place the salary cap are numerous to both the organization and players. For instance, salary cap help prevent unnecessary inequality between clubs/organizations sponsoring the players by ensuring that no particular organization can spend more money in paying their players than the others. Further, it ensures that there is conformity with rules and regulations establish by the National Federation League. The first salary cap was introduced in 1994 where thirty four point six million dollars was set as the salary limit.

The salary cap has been reported to continue increasing over the years and in 2011, collective bargain agreement was reached. The salary cap of one hundred and twenty million dollars was put forth. Moreover, in 2013, a