In today’s world of sports, money has been playing a crucial role in the development of athletes and teams. Professional athletes are making serious amounts of money and has led to the creation of rules and regulations such as the collective bargaining agreement which shows how much money teams can spend on player, how much athletes can make in a given time period, how much an athlete can be paid at minimum and much more.
A player’s minimum wage is different among all the leagues across sports. In the National Basketball Association it takes in consideration the first season in which a player had a contract to determine the minimum annual salary scale. From that year on, till the contract is over, the minimum wage is set based off of the year in which the contract is signed.
In the Major league Baseball collective bargaining agreement, the minimum wage is computed by the previous years rate per season plus the adjustments of the cost of living, rounded to the nearest $500. However, this rate cannot go below $500,000.
In the Major League Soccer, the minimum salary for a senior player goes in increments of $2,500 per year while for reserved player the minimum salaries go in increments of $1,500. Reserved players are obligated to some incentives if they are making less that a senior minimum salary, which include earning addition money for making appearances or starting in a Major League Soccer game.
Another difference is the maximum wage that a player can be paid. In the National Basketball Association, for players that have played under 7 years in the league, the maximum wage would be at 25% of the salary cap effective at the time of the contract or 105% of the prior season’s contract. For player in between 7 and 10 years of in the league, their maximum wage would be at 30% of the salary cap effective at the time. For player who has been in the league for over 10 years are able to receive 35% of the salary cap of the year in which their contract is effective.
In the Major League Soccer league, the maximum salary cannot be more than 12.5% of the team salary budget. However, the Major League Soccer can lower this percentage if they feel that it must be done so.
In Major League Baseball, there is no set salary cap, however there is a luxury tax that is charged on teams which gives the teams reason why they should keep their payrolls lower.
The leagues all vary in different kinds of ways in which they pay their players. Some leagues have a set standard on how much money at maximum a player can make and at minimum how much a player should get paid. Throughout the different collective bargaining agreements, the leagues all show a different amount and way that they calculate how players should get paid.