What if Professional Athletes Salaries were Capped at One Million $?

[Ref]

What would happen if all major league sports capped professional athlete salaries at $1,000,000 per year?

I think some athletes (who are rich) would retire, however I think there are enough athletes hungry enough to work for a max salary of a million per year.

For the first year or so some guys would be mailing it in but the competitiveness within them would override greed and they would soon participate at 100%.

Once reality sets in, what other career option are they going to pursue that pays a million a year? It is still a damn good wage.

 

[maurice93]

The owners would make more money. It wouldn’t benefit fans in terms of ticket prices.

Let’s looks at the NCAA which has in effect capped payroll. TV contracts keep going on up … ticket prices don’t stand still.

 

[NotADcotor]

The owners would make a shit load more money, the money the players don't get.
If you cap what the owners make also than the scalpers would get the excess.

There is demand out there and that money is going to go somewhere. That or huge lineups and connections rule the day.

I am sure someone who has been making 5+ mill for the past decade, many of those would quit.
However in the longer term if that's the going wage the new star players will accept it as 1 million and being a hero is better than working a regular 9 to 5.

 

[shack]

What would happen if all major league sports capped professional athlete salaries at $1,000,000 per year?

Then they would probably be in violation of a multitude of federal laws. Hence, it is an impossible scenario.

 

[Dcoat]

They would register in the Caymans and play "away" games in the US and Canada.

 

[asuran]

Relating to team sports such as NHL/NBA/MLB/NFL etc.
There would be stacked teams and there would be teams that are going to be not that good.

Heck if I'm a great athlete, I would rather make my $1M at a big market city than one that is lesser.
Endorsement deals would make it that much more important if athlete want to maximize his/her money and those tend to go to players in bigger markets than not.


However capping it might allow us, fans, to enjoy the game at a lower ticket prices/lower the cost of tv subscriptions etc. etc.

 

[maurice93]

Then they would probably be in violation of a multitude of federal laws. Hence, it is an impossible scenario.

Actually salary caps and maximum salaries already exist in all sports. They are only illegal if there is no collective bargaining agreement. But since all sports have players unions or associations with collectively bargained terms they are legal.

Getting players to agree to those terms however would be next to impossible. And if the owners just decided to agree to stop pating more than x as a group they would be guilty of collusion. Which is illegal — and as I finish typing this now realize this is probably where you were going with your comment.

 

[Samranchoi]

If many quit that would probably end their chances of getting into their respective HOF’s

 

[Male4Strapon]

What would happen is the top players would start their own leagues. The NFL won’t stand a chance against the league with Mahomes, Brady, etc…… same for NBA against a league with Giannis, Durant……. mLb against Tatis, Otahni, Guerrero, De Grom…. nHL against a league with McDavid, McKinnon, Mathews……

you get the point

 

[glamphotographer]

It will be hard competition for endorsement deals, earnings from being an Instagram influencer, earning from youtube channels, maybe drug dealer on the side, maybe even throw a few games for bookmakers to make extra cash.

 

[NotADcotor]

Another thing is if the majors capped at 1 million dollars, nothing would stop an alternative league from forming and getting all the good players.

 

[mellowjello]

What would happen is the top players would start their own leagues. The NFL won’t stand a chance against the league with Mahomes, Brady, etc…… same for NBA against a league with Giannis, Durant……. mLb against Tatis, Otahni, Guerrero, De Grom…. nHL against a league with McDavid, McKinnon, Mathews……

you get the point

That's happened already, the agents and agencies that rep the players are the driving force, but you have to partner up with
money people. The real motivation is to drive up salaries.
The existing leagues are institutions, it's tough going up against stuff like that.

 

[Male4Strapon]

That's happened already, the agents and agencies that rep the players are the driving force, but you have to partner up with
money people. The real motivation is to drive up salaries.
The existing leagues are institutions, it's tough going up against stuff like that.

with the top stars, finding financing would be no problem at all. Rich people want to own sports clubs, they would jump at the chance to take over one that would have the star power of such a league and the network money that would come with it.

 

[Darts]

with the top stars, finding financing would be no problem at all. Rich people want to own sports clubs, they would jump at the chance to take over one that would have the star power of such a league and the network money that would come with it.

WHA and AFL from my memory bank and history books. All it did was drive salaries even higher.

World Hockey Association - Wikipedia

 

[Male4Strapon]

WHA and AFL from my memory bank and history books. All it did was drive salaries even higher.

World Hockey Association - Wikipedia

for sure but I am going under the OP’s premise of $1 million cap. That would leave no stars at all in the leagues. It would be scrubs and some rookies in the existing leagues.
The USFL and WHA took some stars. A $1 million cap would take EVERY star from the existing leagues.
Starting a new league with top stars would generate tons of interest from networks and sponsors and players might have to settle for less than what they have now but it would definitely exceed $1 million

 

[Darts]

for sure but I am going under the OP’s premise of $1 million cap. That would leave no stars at all in the leagues.

Humans being humans, they will game the system. Let say a bunch of owners start a new hockey league. "Superstar" signs with a team for $1mm. All of a sudden he is also a "consultant" making $2mm to the owner and also starts appearing in endorsement deals making more money.

BTW: One can argue that there is already a salary cap in hockey. A team can't pay more than $81mm (more or less).

 

[Male4Strapon]

Agree and to your point of gaming the system, Habs fans will point out that the Lightning had $98 million worth in the cup final because of Tampa circumventing that $81 million cap.

 

[Fun For All]

Gangsters, gamblers and bookies would own the athletes...

 

[Male4Strapon]

Gangsters, gamblers and bookies would own the athletes...

yes.
Nowadays $1 million for a pro athlete is not realistic enough to be considered in the OP's hypothetical and as you point out could lead to seedier elements.
If for example the OP's idea was capped at $10 million per season, then that would be enough that players couldn't simply walk away from but enough that it wouldn't be worth getting involved in gambling and fixing.

However players would walk out for an extended amount of time so the question would be if the leagues and owners have the stomach to lose revenue, years off their life without their "toy", the PR distaster that it would be, the risk of a competitive start up league, diminishing the value of the club for future sale? I say no chance!........... it all points to the core issue - teams can afford to pay these crazy salaries because the revenues and team value far exceed any loss from player salaries.
Fans need to keep that in mind when owners cry poor.

Oh, and not to mention ........
The Billionaire Playbook: How Sports Owners Use Their Teams to Avoid Millions in Taxes

The Billionaire Playbook: How Sports Owners Use Their Teams to Avoid Millions in Taxes

Owners like Steve Ballmer can take the kinds of deductions on team assets — everything from media deals to player contracts — that industrialists take on factory equipment. That helps them pay lower tax rates than players and even stadium workers.

www.propublica.org

 

[harryass]

they would have to look for work during the off season. Like the CFL players.