Team Salary Comparison by Sport

[elocomotive]

So, with the talk about the cap going up a few weeks ago, I was curious how the different sports compared in terms of the largest markets against the smallest ones. I tallied up and averaged out the player salaries for the top 5 and bottom 5 teams in each of the major and looked at how wide the disparity was between them on average. The results were interesting, if not predictable. Take a look...

MLB
Top 5: Total = $800.6 million, Average = $160.1 mil/team
Bottom 5: Total = $219.2 million, Average = $43.8 mil/team
Average Difference = 265%

NHL
Top 5: Total = $320.1 million, Average = $64.0 mil/team
Bottom 5 : Total = $235.4 million, Average = $47.1 mil/team
Average Difference = 36%

NFL
Top 5: Total = $629.2 million, Average = $125.84 mil/team
Bottom 5: Total = $439.7, Average = $87.94 mil/team
Average Difference = 43%

NBA
Top 5: Total = $479.1 million, Average = $99.4 mil/team
Bottom 5: Total $285.7 million, Average = $57.1 mil/tearm
Average Difference = 74%


KEY
Top 5 = Five teams with the highest team salaries
Bottom 5 = Five teams with the lowest team salaries
Total = Combined annual salaries for that grouping
Average = Average annual salary for a team in that group
Difference = The percentage difference between the average salary of the lowest paid group of teams and the highest paid group of teams

 

[Forty_Sixand2]

MLB Roster size: about 30

NHL Roster Size: about 25

NBA Roster Size: about 16

NFL Roster Size: about 65

if you want to get an idea as to how a payout for a player is....

 

[sabresfaninthesouth]

A few years late, but that right there totally supports Bettman and the owners' assertion during the lockout that the MLB luxury tax system doesn't work.

Also surprised to see the NFL top 5 so much lower than MLB top 5.

 

[Forty_Sixand2]

I love how people call NFL players overpaid (even when they don't have guaranteed contracts). Look at the NBA!!!!!

 

[elocomotive]

A few years late, but that right there totally supports Bettman and the owners' assertion during the lockout that the MLB luxury tax system doesn't work.

Also surprised to see the NFL top 5 so much lower than MLB top 5.

That surprised me too. If baseball weren't so hard to scout and predict performance, the league would be even less competitive than it is now.

 

[elocomotive]

I love how people call NFL players overpaid (even when they don't have guaranteed contracts). Look at the NBA!!!!!

Well, the salaries in all sports should be around x% of revenue, just like costs of manufacturing are around x% of revenue when you are making a product. Naturally, if it takes less players, that money is going to be spread out. Though I think in all these sports, the top guys make comparable amounts (more for the MLB and NBA) and there are just more guys making like $500-800K (poor guys ) in sports like football and hockey.

 

[Forty_Sixand2]

Well, the salaries in all sports should be around x% of revenue, just like costs of manufacturing are around x% of revenue when you are making a product. Naturally, if it takes less players, that money is going to be spread out. Though I think in all these sports, the top guys make comparable amounts (more for the MLB and NBA) and there are just more guys making like $500-800K (poor guys ) in sports like football and hockey.

I don't know. Peyton Manning makes 12mil a year. Don't the big three in Miami make upwards of 23 EACH!!!! Then there is baseball......

 

[elocomotive]

I don't know. Peyton Manning makes 12mil a year. Don't the big three in Miami make upwards of 23 EACH!!!! Then there is baseball......

That's what I said. MLB players often make more (no real cap, MUCH longer season for more revenue) and NBA players often make more (only about 8 guys typically used in a significant role in any game). You'll see mediocre players in those sports sometimes making $7-10 million.

I just didn't want this to be about who's "overpaid." They are paid based on how many people will come see them and watch them on TV. I'm more interested in the competitiveness/parity of the leagues by their ability to attract and hire talent.

It would appear the NHL and NFL do a much better job than the NBA and MLB.

 

[awaz]

ya the disparity is insane in the MLB and to an extent the NBA.. shows that hard caps are the way to keep things competitive, at least in terms of salary

 

[elocomotive]

ya the disparity is insane in the MLB and to an extent the NBA.. shows that hard caps are the way to keep things competitive, at least in terms of salary

And a better business maneuver as well. See: NFL printing money, NHL stability.

 

[Darkstone42]

So, with the talk about the cap going up a few weeks ago, I was curious how the different sports compared in terms of the largest markets against the smallest ones. I tallied up and averaged out the player salaries for the top 5 and bottom 5 teams in each of the major and looked at how wide the disparity was between them on average. The results were interesting, if not predictable. Take a look...

MLB
Top 5: Total = $800.6 million, Average = $160.1 mil/team
Bottom 5: Total = $219.2 million, Average = $43.8 mil/team
Average Difference = 265%

NHL
Top 5: Total = $320.1 million, Average = $64.0 mil/team
Bottom 5 : Total = $235.4 million, Average = $47.1 mil/team
Average Difference = 36%

NFL
Top 5: Total = $629.2 million, Average = $125.84 mil/team
Bottom 5: Total = $439.7, Average = $87.94 mil/team
Average Difference = 43%

NBA
Top 5: Total = $479.1 million, Average = $99.4 mil/team
Bottom 5: Total $285.7 million, Average = $57.1 mil/tearm
Average Difference = 74%


KEY
Top 5 = Five teams with the highest team salaries
Bottom 5 = Five teams with the lowest team salaries
Total = Combined annual salaries for that grouping
Average = Average annual salary for a team in that group
Difference = The percentage difference between the average salary of the lowest paid group of teams and the highest paid group of teams

It's interesting, the leagues with hard caps saw nearly immediate increases in popularity and revenue once those caps were installed. We'll see how the trend continues, but early indications are that hard caps are better for the leagues financially.

On the MLB point specifically, I think the owners, the league, and the players should all be in favor of a hard cap because it will promote growth financially for everyone on the average. Sure, the Yankees might not be as dominant, but they're going to remain competitive as long as they're well run, so they won't lose all that much revenue, and because of the cap, they'll be spending less to generate that revenue.

From the league's perspective, even if large market revenue drops (and the effect there should be minimal), the small market revenue will drastically increase because those teams will suddenly become consistently competitive.

From the players' perspective, the superstars will certainly lose some money, but the advent of the cap floor will increase the league minimum salary, thus reducing the disparity between player salaries, which unites the union overall, and strengthens the average income for the players.

I don't understand why they haven't done it yet.