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The Kingpin
08-04-2009, 12:25 PM
There was a thread closed today discussing the merits of various salary caps. It was closed with the suggestion that there have been other threads on the subject. I have yet to see any of these threads until today... But this one one of the best posts in half a year... with thoughts and projections. I think we need to assume that not everyone lives on here 24/7 thus certain debates need to re-evolve. I was interested to discuss the subject as it's quite interesting, I find this particular closure quite pedantic. This was the post to which I'm referring:

Which type of salary cap structure is best for MLS 2010 and onward?
http://blogs.reuters.com/soccer/2009...n-mls-cash-in/

Quote:
The MLS’s prudent salary cap and the very gradualist approach to expansion have been factors in its modest success so far but they could, in time, turn out to be exactly what is holding the game back.
The current structure is a hard $2.3 mil per team. Assume it will increase to $2.5 mil in 2010, it will look like this under the various salary structure:

Current MLS structure: hard salary cap $2.5 mil (league pay)
NFL: floor at $2.5 mil(league pay); hard cap at ~$2.9; incentive bonuses will not count toward the cap
NHL: lower limit $2.5 mil (league pay); upper limit $3.5 mil
NBA: $2.5 mil soft cap (league pay); luxury tax ($1 for $1 over) threshold starting at $3 mil
NBA/Snowden: $2.5 mil soft cap(league pay), $6 mil hard cap, luxury tax ($1 for 1) starting at $3 mil
Snowden's two tier cap $2.5 mil soft cap (league pay); $7.5 mil hard cap (3:1 ratio)
MLB: no salary cap; luxury tax starting at around $5-6 mil
EPL, La Liga, Mexican FMF, J-league, Serie A, USL etc... no salary cap

http://www.bigsoccer.com/forum/showthread.php?t=1100492
Click on that link if you want to see how the NFL, NHL, NBA, MLB, EPL, and J-league institute their salary structure as well as the payroll for every single teams in those leagues. Too long and tedious to copy and paste into this thread. Here's the payroll ratio between the big revenue teams and small revenue teams in those leagues:

Ratio of top payroll / bottom payroll for NBA 2008-09=1.703
Ratio of top payroll / bottom payroll for NFL 2008 = 1.822
Ratio of top payroll / bottom payroll for NHL 2007-2008 = 2.03
Ratio of top payroll / bottom payroll for J-league 2009 = 5
Ratio of top payroll / bottom payroll for MLB 09 = 5.47
Ratio of top payroll / bottom payroll for EPL 07/08 = 24.94

Currently, MLS have the strictest salary cap in all of sports. Because the league pays the $2.3 mil hard cap and no team can exceed this, MLS has basically institute a level playing field for all clubs. Even the NFL (the next strictest) allow a floor of 87.6% and a ceiling cap at 100%. In addition, incentive bonuses are not counted in the NFL cap which mean the Raiders spent $152 mil on payroll while Kansas City spent $83 mil payroll.

p.s. I have done a lot of research on this topic so please don't close this thread like you did last time. I promise this will be the last thread on the salary cap if you keep this one open. Even moving this thread to the Off Topic Forum is more preferable than closing this thread.

Anyway, MLS is at a crossroad. What happen in the 2010 CBA will determine the future of MLS for the next 5-8 years and beyond. It will set the foundation of where MLS will go from here. Modest growth or significant growth. MLS is right to have a very strict hard cap since 1996 because the league face financial challenges and even survival. However, in the past few years, many SSSs have opened up, sponsorship is at an all time high, MLS got $135 mil from the last four expansion fees (and $75-80 mil to come in team #19 and #20), $20 mil a year TV deal (first in MLS history). The new breed of expansion teams (Toronto, Seattle, Philly, Vancouver, Portland, Montreal) are showing signs of significantly higher attendance than the old MLS cities. It's time to take off the training wheel. It's time for MLS to do better in the Champions League. A measly 2 wins in 21 Champions League matches is embarrassing and is harming MLS image and reputation (MLS record in the CCL: 2 Wins - 8 Draws - 11 Losses).





-------------------------My thought on this subject:

Forcing the like of Galaxy, Toronto, Seattle, Vancouver to have the same hard salary cap as the like of SJ, KC, Columbus, NE means that MLS is favoring its weakest teams. It's not fair or natural for a $30 mil team to be forced to spend the same amount as a $10 mil team. Even the NFL recognized this and allow their strongest teams/markets to spend a lot more than their weakest teams/markets. Having a level playing field for all teams hindering the growth of MLS's strongest markets, the very markets that could push MLS forward to the next level.

I believe the best cap structure for MLS is one where the ratio between the highest team and lowest team is about 2 to 1. This keep the whole league competitive as oppose to the like of EPL where the ratio between the Chelsea and Hull is 25 to 1. In addition, some form of luxury tax is needed to help the low revenue teams financially. This means that if the high revenue teams want to spend more, they will have to pay for this advantage. My suggestion:

$2.5 mil soft cap (pay by the league)
$6 mil hard cap (pay by the club ownership from $2.5 mil onward)
$3 mil luxury tax threshold ($1 tax for $1 over)

My guesstimate of what the salary structure and luxury tax would look like:

$6 mil, $6 mil, $6 mil, $6 mil, $6 mil, $5 mil, $5 mil, $5 mil, $4 mil, $4 mil, $4 mil, $4 mil, ~$3 mil, ~$3 mil, ~$3 mil, ~$3 mil, ~3 mil, ~$ mil, ~3 mil = competitive league.

LA Galaxy, NY Red Bull, Seattle, Toronto, Vancouver: $6 mil player salaries (---- pay $3 mil luxury tax)
Philadelphia, Montreal, Portland: $5 mil player salaries (----pay $2 mil luxury tax)
Chicago, DC United, RSL, Houston: $4 mil salaries (----pay $1 mil luxury tax)

San Jose, Kansas City, New England, Columbus, Dallas, Chivas, Colorado : $2.5 mil to $3 mil (---receive the luxury tax revenue).

That's $25 mil in luxury tax revenue to be shared by MLS smaller markets (about $3.6 mil per team).

TFC USA
08-04-2009, 12:29 PM
I'm betting this one gets closed too.

grizzle
08-04-2009, 12:31 PM
Yea I didn't really get why it was closed either.

H Bomb
08-04-2009, 12:31 PM
ohhh, this is just screaming for a comedic close....come on mods, dont let me down.

also, it's not a good thread title, kinda shows the reason for making the thread was not to spread info but be noticed and oppressed. You aren't oppressed.

Cashcleaner
08-04-2009, 12:37 PM
There is a very handy search function on the forums that allow you to find threads on specific topics such as salary caps. Three of which have been created in rapid succession to each other, as a result we're having to close or merge some.


http://www.redpatchboys.ca/forums/search.php?searchid=1022006

Parkdale
08-04-2009, 03:27 PM
I find this particular closure quite pedantic.

I find this particular thread quite pedantic.