CrashingTheGoalie

MLB AND NHL: TOP AND BOTTOM TEAM SALARIES

J000000Tuesday08 31, 2008 · Leave a Comment

by Ron Spence

The Yankees’ payroll is 957.5% higher than the Marlins’ total salaries. The NHL only allows for a 139% difference between teams’ payrolls.

The NHL and the NHL Players’ Association agreed that each team could spend up to $56.7 million US on players’ salaries this season – an increase of $6.4 million over last year’s total.

The salary “floor” – the minimum each team must spend – also rose $6.4 million, which brought it up to $40.7 million.

courtesy of sportsline.com

MLB doesn’t have any maximum or minimum team salaries (or maximum players’ salaries). Thus, the percentage difference between the top and bottom clubs is potentially infinite.

Last season, the New York Yankees paid 957.5% more in salaries than the team with the lowest payroll – the Florida Marlins.

The salaries of the bottom MLB teams are dependent on:  the ability of small market teams to pay; the decision of some to keep payrolls small and break even, or turn a profit.

Sometimes the teams that have paid a lot less have done well. The Tampa Bay Rays, for example, were 29th in MLB salaries paid, and played the Philladelphia Phillies, who were paying 13th, for the 2008 World Series championship. Ironically, the Yankees had 89 wins, whereas the Marlins had 84 “W”s.

The MLB teams are listed according to total salaries. I have also noted their placement for wins – combining the two leagues.

courtesy of HockeyBuzz.com

As noted above, the NHL salary cap – for the 2008-09 season – is $56.7 million. The minimum team payroll is $40.7 million.

HockeyBuzz’s numbers – listed above – are a work in progress, as teams are establishing their payrolls, and thus aren’t being used in these calculations. Also, the teams are listed from bottom to top – to calculate cap room.

The NHL’s system is theoretically superior, as it helps to create league parity. The problem, however, is that some of the salary “floor” teams can’t afford to pay the totals that the NHL and NHL Players’ Association have mandated. This could result in team insolvency, or forced sales.

Categories: ECONOMICS - NHL, NBA, NFL, MLB
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