Salary Cap on Pro Sports
1) Please describe what sports were like (NFL) before the introduction of the salary cap? (was it monopsonistic labour?) Where can I find a book to help me write an essay on this?
2) What implications on labour did 1. free agency and 2. the salary cap have on pro sports? (What books can I use to help write an essay on this? also i'd need some economic models if possible).
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Solution Preview
Before the salary caps and unions, the labor market for athletes was similar to any labor market. Indviduals negotiated their wages with an employer. Restrictions did exist but were negligible. If a player wanted more money than offered, they found work elsewhere.
The introduction of players unions altered the bargaining positions. There is strength in numbers. Players could ask for more money because the threat extended beyond one player to all of them. ...
Solution Summary
Impact of the Salary Cap on Pro Sports is discussed in the solution.