Rising Inequality In The NFL

March 23, 2017 in Daily Bulletin

Kevin Clark wrote that players in the NFL are increasingly divided into two categories:

  • On the face of it it’s a great time to be an NFL player. The salary cap in 2017 is $167 million. A $12 million increase from last year, and almost a $50 million increase since 2011.
  • But wealth is increasingly being concentrated in a few elite superstar players – at the expense of the average player.
  • The lack of negotiating power is partly due to larger training camps and practice squad rosters – increasing the supply of players while holding demand constant.
  • A rookie salary scale which reduced the income of newcomers – in an effort to direct money towards older players – had anchoring effects that changed how much money players expected to receive when they could freely negotiate pay.
  • Teams have started including “injury splits” in their contracts for non-elite players. Players don’t get paid if they’re injured. This is estimated to have cost players $28 million in 2015.
  • Per game bonuses are a different way to achieve the same goal.
  • If a team knows that they’ve made the playoffs, some have started keeping those earning per game bonuses on the bench to save money.

Read all the details on The Ringer.

Via: Marginal Revolution