Salary Caps

you are failing to recognize my point that some firms want to pay more than the limit imposed by the salary cap

for example, teams residing in bigger markets like (London, New York, etc. etc.)

surely, we can’t expect homogeneous revenue streams for each of the teams in a particular league

a salary cap prevents the financially better off businesses from assembling the best team possible

Thats the point of it… the league wants the teams to be competitive. The teams agree to this when they join the league. What is the problem here?

So what? You are assuming that “the best team possible” is a desired end. Maybe it isn’t. In fact, what your marketing people will probably tell you is that you’ll sell more tickets and ad spots if you field consistent down-to-the-wire games. A league with only two really competitive teams would get pretty boring over time. Of course, there are also niches in which the consumers in that particular market may like it that way. Professional golf, for example, is a sport where the ultimate consumer tends to like seeing the same big, well-funded names win over and over.

Only control-freak social engineers who assume there is some gnostic, ultimate “end” that must be obtained regardless of any business consideration worry about this sort of thing.

I have no experience of sports like baseball, soccer, basketball and so but I have lots of experience in motorsports.

You may be shocked to learn that the ones constantly pressuring for cost-cutting measures and more restrictive rules are the biggest players in the field, the factory-backed teams and the ones with budgets four to five teams the privateers’. To cut a very long story short they know very well what they are doing, they know that performance improvements with tighter rules tend to become unbelievably expensive and hence will consolidate their dominance and they know that teams “thinking outside the box” will be penalized and perhaps forced to retire. You are a smart lot so I don’t need to tell you that sports is simply politics wearing a more attractive apparel.