2010 CBA and the salary cap structure

[Dust2]

The current hard cap is $2.3 mil this year. Assuming that it will increase to $2.5 mil for 2010, it would look like this under the various sports league models:

The current MLS hard cap structure
NRL (rugby): $2.5 mil (league paying) floor; $2.8 mil ceiling
CFL: $2.5 mil (league paying) hard cap; luxury tax $3 for $1 over at $2.8 mil and beyond
NFL: $2.5 mil (league paying) floor; ceiling ~$2.9 mil; incentive bonuses not counted toward the salary cap
$2.5 mil (league paying) salary cap with paid attendance bonus (1000 paid attendance above the league paid average attendance = $100k in extra cap space)
$2.5 mil (league paying) salary cap with DP exempted
$2.5 mil (league paying) salary cap with 2 DPs (1 exempted, 1 not)
$2.5 mil (league paying) salary cap with 2 DPs (both exempted)
NHL: $2.5 mil (league pay) lower limit; $3.5 mil upper limit
NBA: $2.5 mil soft cap (league pay); luxury tax ($1 for $1 over) starting at $3 mil
NBA/Snowden: $2.5 mil soft (league pay); $6 mil hard cap; luxury tax ($1 for 1 over) starting at $3 mil
Snowden's two tiers cap: $2.5 mil soft cap (league pay); $7.5 mil hard cap (3:1 ratio)
UEFA Platini: cap links to 25% of each club's total revenue with luxury tax
MLB: no salary cap; luxury tax starting at around $4-6 mil
EPL, USL, La Liga, Serie A Mexican FMF, J-league etc... no salary cap

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 and what kind of league MLS will be. In the past several years, MLS have been successful in building SSSs, getting a $17 mil a year TV deal, shirt sponsorship initiative that have net MLS tens of millions and the $150 mil 10 years adidas deal. According to Soccer America, "since the last collective bargaining agreement with players in 2004, MLS has received more than $200 million in expansion money." With team #19 and #20 to come, MLS will receive another $75-80 mil in expansion fee. The new breed of expansion teams (Toronto, Seattle, Philly, Vancouver, Portland, Montreal) are showing signs of significantly higher attendance than the old MLS cities. Maybe, it's time to install a more flexible salary cap structure.

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. What I would like to see as the salary cap structure in 2010 and beyond is the NBA/Snowden mixture:

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

What kind of salary structure do you think is best for MLS to grow, succeed and prosper in the years to come? Here's Simon Evans, a Reuters Sports Correspondent, opinion on the matter:
http://blogs.reuters.com/soccer/2009/07/30/americans-fall-for-soccer-but-can-mls-cash-in/


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.

[VPjr]

I've got give you credit for being persistant with these threads and polls.

[Dust2]

Moderators, please do not close this thread like you did the other threads I started about this topic. Let's it die on its own if there is no interest (replies). As I stated, if you keep this thread open, you will not hear anymore from me about the salary cap structure. Thank you.

If you posters want to keep this thread alive, please post or drop a comment. Feel free to discuss and debate on the most important topic in MLS history....its salary structure for the next CBA. I will not post again on this thread until it reaches 25 replies. If it does not reach 25 replies, I will just let it die.


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


2008 NFL payroll

NFL Teams Total Payroll
NFL Oakland Raiders Teams $ 152,389,371
NFL Dallas Cowboys Teams $ 146,401,600
NFL Minnesota Vikings Teams $ 133,354,045
NFL Cleveland Browns Teams $ 131,916,300
NFL New Orleans Saints Teams $ 131,531,820
NFL Pittsburgh Steelers Teams $ 128,815,061
NFL Tennessee Titans Teams $ 126,017,443
NFL Arizona Cardinals Teams $ 122,110,110
NFL Jacksonville Jaguars Teams $ 122,109,207
NFL Chicago Bears Teams $ 120,065,819
NFL San Francisco 49ers Teams $ 118,766,239
NFL New York Jets Teams $ 116,910,097
NFL St. Louis Rams Teams $ 116,677,660
NFL New York Giants Teams $ 115,816,180
NFL Miami Dolphins Teams $ 114,649,660
NFL Buffalo Bills Teams $ 113,364,927
NFL Carolina Panthers Teams $ 112,114,711
NFL Washington Redskins Teams $ 111,963,684
NFL San Diego Chargers Teams $ 111,813,340
NFL Cincinnati Bengals Teams $ 109,727,880
NFL Philadelphia Eagles Teams $ 109,557,398
NFL Houston Texans Teams $ 108,445,418
NFL Tampa Bay Buccaneers Teams $ 104,329,311
NFL Seattle Seahawks Teams $ 102,985,710
NFL Atlanta Falcons Teams $ 96,391,525
NFL Detroit Lions Teams $ 95,827,117
NFL Denver Broncos Teams $ 95,599,778
NFL Green Bay Packers Teams $ 94,018,300
NFL Indianapolis Colts Teams $ 93,373,915
NFL New England Patriots Teams $ 92,734,120
NFL Baltimore Ravens Teams $ 90,713,965
NFL Kansas City Chiefs Teams $ 83,623,776

Ratio of top payroll / bottom payroll for NFL 2008 = 1.822


----------------------------------------------------------
NHL

2009-2010 Salary cap

-- The Upper Limit: $56,800,000
-- The Lower Limit: $40,800,000

http://content.usatoday.com/sports/hockey/nhl/salaries/default.aspx

Team (2007-08) Total Payroll ($) (2007-08)

Colorado Avalanche 61,290,750
New York Rangers 56,705,000
Philadelphia Flyers 56,973,200
Anaheim Ducks 50,769,200
Calgary Flames 50,934,900
Dallas Stars 49,420,000
Boston Bruins 49,501,600
.
.

Buffalo Sabres 45,954,400
Carolina Hurricanes 49,948,600
Detroit Red Wings 44,633,000
Edmonton Oilers 46,915,659
Florida Panthers 39,749,200
Los Angeles Kings 40,502,000
Minnesota Wild 46,183,000
Montreal Canadiens 42,313,500
New Jersey Devils 47,622,511
New York Islanders 39,007,720
Ottawa Senators 49,997,370
Pittsburgh Penguins 41,384,200
San Jose Sharks 41,454,800
St. Louis Blues 39,047,833
Tampa Bay Lightning 38,954,167
Toronto Maple Leafs 46,445,180
Vancouver Canucks 45,710,000
Washington Capitals 44,309,200
.
.
Atlanta Thrashers 36,580,000
Phoenix Coyotes 35,694,750
Chicago Blackhawks 34,800,540
Nashville Predators 30,273,340
Columbus Blue Jackets 28,010,000

Ratio of top payroll / bottom payroll for NHL 2007-2008 = 2.03


---------------------------------------------------
NBA (min salary @ 75% of cap, luxury tax @ 121% of cap)

http://www.nba.com/news/salarycapset_080709.html


The National Basketball Association today announced that the Salary Cap for the 2008-09 season will be $58.680 million.

The tax level for the 2008-09 season has been set at $71.150 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $71.150 million.

The mid-level exception is $5.585 million for the 2008-09 season and the minimum team salary, which is set at 75% of the Salary Cap, is $44.010 million.2008-2009 payroll
http://hoopshype.com/salaries.htm

1. New York Knicks $94,842,168
2. Dallas Maverick $92,758,122
3. Cleveland Cavaliers $91,650,943
4. Boston Celtics $80,659,701
5. Portland Trail Blazers $80,600,059
6. Phoenix Suns $75,626,030
7. Houston Rockets $75,469,051
8. Los Angeles Lakers $75,255,408
9. Sacramento Kings $73,129,886
10. Detroit Pistons $72,076,423
11. Toronto Raptors $71,965,453
12. Milwaukee Bucks $71,421,682

------------pay luxury tax----------

13. Washington Wizards $70,259,475
14. Indiana Pacers $70,036,797
15. Denver Nuggets $70,478,826
16. Miami Heat $69,865,650
17. San Antonio Spurs $69,299,039
18. Orlando Magic $68,713,618
19. Oklahoma City Thunder $68,533,648
20. Chicago Bulls $68,520,301
21. Golden State Warriors $68,461,515
22. Philadelphia 76ers $68,393,588
23. Atlanta Hawks $68,012,336
24. New Orleans Hornets $67,866,515
25. Minnesota Timberwolves $66,066,569
26. Utah Jazz $65,632,827
27. New Jersey Nets $62,609,434
28. Charlotte Bobcats $61,787,680
29. Los Angeles Clippers $60,775,937
30. Memphis Grizzlies $55,705,279

Ratio of top payroll / bottom payroll for NBA 2008-09=1.703

---------------------------------

Richard Snowden's two-tier cap system

http://soccer365.com/us_news/story_81208190400.php



UEFA Platini: cap links to certain percentage of each club's total revenue

http://www.independent.co.uk/sport/football/european/platini-aim-is-financial-fair-play-1547556.html
Platini's proposals: Wages could be linked to percentage of club turnover


Proposals being considered by the Uefa president Michel Platini:

* Clubs should live within their means and spend the income they have.

* This may mean wages being linked to an audited percentage of turnovers. NRL

In 2009, the salary cap for the sixteen teams is $4.4 million, with a $3.96 million salary floor.

The NRL is one of the only major leagues to implement a salary cap when there are competing leagues in other countries where there is either no salary cap, or a much higher cap per club. As a result, there is a constant drain of players from Australia to Europe where salaries for the elite (and even for average players) are considerably higher. The NRL has chosen to continue with the cap, believing that any reduction in quality of the sporting product due to the loss of these players is less than allowing richer clubs to dominate.



No salary cap with luxury tax like MLB


MLB's current collective bargaining agreement sets a 'payroll threshold' each season that is somewhat similar to a salary cap. For the 2007 season, this threshold has been set at $148 million ($155 million in 2008). Should the average annual value of a team's total salary contracts surpass this threshold in any year, they pay a 'tax' on the amount over the threshold.http://www.cbssports.com/mlb/salaries


Team Payroll Average
1. New York Yankees $201,449,289 $7,748,050
-----------------pay luxury tax--------------------------
2. New York Mets $135,773,988 $4,849,071
3. Chicago Cubs $135,050,000 $5,402,000
4. Boston Red Sox $122,696,000 $4,089,867
5. Detroit Tigers $115,085,145 $4,110,184
6. Los Angeles Angels $113,709,000 $4,061,036
7. Philadelphia Phillies $113,004,048 $4,185,335
8. Houston Astros $102,996,415 $3,814,682
9. Los Angeles Dodgers $100,458,101 $4,018,324
10. Seattle Mariners $98,904,167 $3,532,292
11. Atlanta Braves $96,726,167 $3,335,385
12. Chicago White Sox $96,068,500 $3,694,942
13. St. Louis Cardinals $88,528,411 $3,278,830
14. San Francisco Giants $82,161,450 $3,043,017
15. Cleveland Indians $81,625,567 $3,023,169
16. Toronto Blue Jays $80,993,657 $2,892,631
17. Milwaukee Brewers $79,857,502 $3,194,300
18. Colorado Rockies $75,201,000 $2,785,222
19. Arizona Diamondbacks $73,571,667 $2,724,877
20. Cincinnati Reds $70,968,500 $2,957,021
21. Kansas City Royals $70,908,333 $2,727,244
22. Texas Rangers $68,646,023 $2,367,104
23. Baltimore Orioles $67,101,667 $2,580,833
24. Minnesota Twins $65,299,267 $2,251,699
25. Tampa Bay Rays $63,313,035 $2,183,208
26. Oakland Athletics $62,310,000 $2,225,357
27. Nationals $59,328,000 $2,045,793
28. Pirates $48,743,000 $1,874,731
29. San Diego Padres $42,796,700 $1,528,454
30. Florida Marlins $36,814,000 $1,314,786Ratio of top payroll / bottom payroll for MLB 09 = 5.47


English Premier League

TOP PREMIER LEAGUE WAGE BILLS 2007/08

Current exchange rate = $1.64 = £1

Chelsea - £172.1m
Manchester Utd - £121.1m
Arsenal - £101.3m
Liverpool - £90.4m
Newcastle Utd - £74.6m
Portsmouth £54.7m
Manchester City £54.2 m
Tottenham Hotspur £52.9 m
Aston Villa 50.4 m
Everton 44.5 m
West Ham United 44.2 m
Blackburn Rovers 39.7 m
Fulham 39.3 m
Bolton Wanderers 39 m
Wigan Athletic 38.4 m
Sunderland 37.1 m
Middlesbrough 34.8 m
West Bromwich Albion 21.8m
Stoke City 11.9 m
Hull City (2007 figures) 6.9 m

Ratio of top payroll / bottom payroll for EPL 07/08 = 24.94

[jloome]

The NHL's maintains a semblance of parity and really puts the onus on management to make good personnel choices. Plus, at the levels you've posted, it really respects the current financial inequities and will force some teams, by having a spending minimum, to make substantially better management choices to maximize football revenues. Dallas comes to mind.

Obviously, the one that benefits TFC most here is the attendance aggregated cap; also great for LA and Seattle, and next year, New York. But there's a serious risk in inviting capital investment to bolster competitive roster possibilities before certain partner clubs can afford to do so.

It's not like these companies are under-capitalized, but given the length of stay in some markets, it remains to be seen if simpyl building new stadiums is enough.

[Limani_Ole]

Dust2.. only your mother can show you the type of acceptance your looking for..

[OneLoveOneEric]

MLB. No cap. Luxury tax for big spenders.

[Jack]

Moderators, please do not close this thread like you did the other threads I started about this topic. Let's it die on its own if there is no interest (replies). As I stated, if you keep this thread open, you will not hear anymore from me about the salary cap structure. Thank you. Dust2, I have closed a couple of your threads because it seems like you are repeating the same topic over and over again.

Instead of sending a PM to me or one of the other moderators to discuss this you have continued to post new threads on the same topic and then call out the mods for closing your threads.

There is a reason the repeat threads were closed and that is that you have started several threads on the same topic that have "gone down the page" so to speak and then you proceed to start another one with a slight variation on the same theme.

You will now receive a temporary ban for this.

Next time, try to communicate instead of simply reposting again after a thread has been closed.