Sunday, April 13, 2014
What should the minimum salary be?
?This is a pretty fascinating article.
Focus on the part for golf and tennis. Golf spreads out the money more than tennis does. So, the first question is how much should the early round losers get. You want to make it good enough to attract future quality, but not high enough that it'll attract everybody.
You can see in golf, since Tiger has come on the tour, the money has been spread out across more players. I can guess that with total purse up, and more focus on golf in general, you have more talent coming in, more competition, so the money gets spread out more. (I'm assuming that the % share for finishing 1st, 2nd, 3rd, etc, hasn't changed. Otherwise, what I said might not hold.)
If in tennis the money stay with the top dogs, it might not attract new players as a viable source of employment.
We also see the difference between NHL and MLB, and that's likely tied to the league minimum salary, where the NHL is higher than MLB, even though it has less than half the revenue. But, maybe the NHL needs to do that to ensure that they get as many people playing hockey in the lower levels, to see the NHL as a viable opportunity. (Not that they'd shift to other sports, but simply shift to the real world jobs. NHL and Olympian Joe Juneau for example, or exception, had a degree in aeronautical engineering.)
Anyway, so it's a fascinating topic to try to figure out how to balance out the salary structure to ensure the talent flows continues or increases, without affecting the top guy's "free market" value. Hold back too much, and the top guys can simply start their own league.
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