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by brudgers
4901 days ago
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>"The NFL has managed this shift quite remarkably, in a fashion that has gotten them so that virtually very team is profitable" Professional football's labor economics are radically different from other sports. They have virtually no development costs associated with talent - development of talent is largely done by universities (many tax supported). In addition the market value of players is based upon barter - trades typically don't involve transfer fees, they involve other players sometimes and usually involve draft picks. Draft picks are interesting because high round picks are associated with a greater out of pocket expense for the team receiving them should they choose to exercise the pick - i.e. the signing bonus and salary of the first overall pick are substantial outlays, whereas a second round pick will involve less money. |
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The NHL has a similar system, though. They draw on NCAA and international minor league talent, neither of which are paid for by the league.
The NBA is similar, though I would argue that the out of high school and "one and done" draft rules have hurt the league much more than anything else.