Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Series Vol. 20 , 13 September 2023
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This paper investigates the impact of a team's salary cap on its end-of-season standing. This study made use of data from the Spanish Soccer League (La Liga) and the National Football League (NFL). Four consecutive seasons of correlation and regression analyses were conducted for both leagues to determine the relationship between these two variables. The analysis revealed that in La Liga, a higher salary cap will result in a higher team ranking. However, no correlation between salary caps and NFL team rankings has been found. The root cause for the inconsistent results may be that the disparity in salary cap between NFL teams is insufficient to have an actual impact on team performance. This research is valuable in informing the club manager whether accumulating expensive players to buy the trophy is a feasible strategy.
player salary, salary cap, team performance, team ranking
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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