Sports Economics: Current Research

By John Fizel; Elizabeth Gustafson et al. | Go to book overview

CONCLUSION

The advent of free agency with the new CBA in the NFL has not been a blessing for all players. Instead, free agency, coupled with two different salary caps, has created distinct winner and losers. Our results are very similar to those obtained by Quirk and Fort ( 1992) for baseball in that we find that salaries have become less equally distributed. Superstars have gained dramatically from free agency. However, the pay of the bottom two-thirds of the income distribution has fallen. In particular, the pay of mid-level players has declined dramatically. The creation of a caste system is highly ironic for a union that prided itself on emphasizing the interests of "the guards and tackles" over those of the highly paid quarterbacks ( Helyar, 1995).

In addition to changing the size of the rewards, the new CBA has changed the criteria on which players' pay is evaluated. As one might expect of a union to which rookies do not yet belong, the NFLPA negotiated a salary cap for rookies that significantly depressed their pay. Even veterans, however, were affected. Prior to the new CBA, pay was heavily determined by the position one played. Thus, one was slotted at a quarterback's or a linebacker's level of pay regardless of whether one started. Under the new regime, starters experienced sharp increases in their pay while players who did not start received sharply lower pay than before. The reward structure in the NFL has thus moved markedly from "who one is" to "what one has done lately."


NOTES

We thank Andrew Buck, Elizabeth Gustafson, Lawrence Hadley, Daniel Rascher, and David Schaffer for their many helpful comments and suggestions. Jennifer Gordon and Yelena Suris provided expert research assistance.

1.
The salary of any undrafted rookie shall count toward the club's rookie cap only to the extent that it exceeds the applicable minimum salary for that player ( NFLPA, 1993, p. 44).
2.
DGR is "the aggregate revenues received or to be received on an accrual basis, for or with respect to a league year during the term of this agreement, by the NFL and all NFL teams, from all sources, whether known or unknown, derived from, relating to or arising out of the performance of players in NFL football games, with only the specific exceptions set forth below. The NFL and each NFL team should in good faith act and use their best efforts, consistent with sound business judgement, so as to maximize DGR for each playing season during the term of this agreement." DGR includes pre-season, regular season and post-season gate receipts (net of admission taxes and surcharges paid to municipal authorities) and any proceeds from the broadcast or rights to broadcast any NFL game ( NFLPA, 1993, p. 74).
3.
A player earns one credited season for each season in which he received, or should have received full pay status for a total of three or more regular season games, not including games for which the player was on: (i) the Except Commissioner Permission List, (ii) the Reserve PUP List as a result of a non-football injury, (iii) a team's practice or development squad, or (iv) the Injured Reserve List ( NFLPA, 1993, p. 116).
4.
The minimum salaries cannot increase by more than 10% per season and cannot decrease, regardless of the change in Projected DGR ( NFLPA, 1993, p. 116).
5.
The definition of accrued season is the same as that of credited season (in note 3), except that games on the injured reserve list are included and that the number of regular season games required increases from three to six ( NFLPA, 1993, p. 48).
6.
Each season during the term of the agreement, each club can designate one of its players

-224-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Sports Economics: Current Research
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 252

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.