Could MLS grow faster if it follow the NBA model? Teams with high growth potential like NY, LA, Tor, Sea, Van, Chicago, DC, Houston, Philly are allowed to grow. At the same time, they will pay a hefty luxury tax for the privilege of spending more than the low-to-mid level MLS clubs. These low-to-mid level clubs benefit from the luxury tax payment.

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.
In a nutshell, salary cap at $58.69 mil. Minimum salary (75% of cap) $44.01 mil
Luxury tax start at $71.150 mil ($1 per $1 over).

In 2005-06, the New York Knicks' payroll was $124 million, putting them $74.5 million above the salary cap, and $62.3 million above the tax line, which Knicks owner James Dolan paid to the league.


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
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



If MLS follow NBA salary cap model, it could look something like this:

Salary cap at $3.2 mil
Minimum salary cap (75%) at $2.4 mil
Luxury tax ($1 for $1 over) starting at $4 mil

(the actual number will be up to MLS to decide, the above is just an example).

MLS would pay salaries up to $2.4 mil and each team owner will be responsible for the rest. Or MLS could change its regulation and make each team pay salary instead. For me, there are two important objectives for MLS: 1) cost certainty---allow all MLS teams a chance at profitability 2) allow MLS high revenue teams and teams with high growth potential to grow. The current level playing field/hard cap hinder the potential of the very teams that could push MLS forward.

NY, LA, Tor, Sea, Van, Philly could have a $8 mil wages (and pay $4 mil in luxury tax). This would allow them the ability to grow at a much faster rate. I wouldn't be surprised if Seattle could average 40,000 if it could spend $8 mil in wages instead of $2.3 mil. Same with Toronto, Vancouver. And of course, New York and Los Angeles have the most growth potential because their markets are the biggest.

MLS would do better in the Champions League. Its image and reputation among existing soccer fans would increase. Its TV rating would increase because of high profile match-ups. A team like NY,LA,Sea,Tor could have $1 mil/year type players like Donovan, Cooper, Altidore, Kljestan, Angel. That team probably need about $8-10 mil cap (and pay about $4-6 mil luxury tax).

The current US National team rosters have 16 out of 23 players playing abroad. Could MLS use some American national team members like Bocanegra, Dempsey, Freddy Adu, Altidore, Michael Bradley, Tim Howard, Brad Guzan, Benny Feihaber, Onyewu, Beasley, Danny Califf? Just some of them staying in MLS would be good for the league. The J-league has 23 out of 28 Japanese national team players playing in the J-league. This definately help the league grow. With $8-10 mil wagse, a few teams will retain/get US internationals and for Van/Tor Canadian internationals.