cba fan Posted July 16, 2017 Author Posted July 16, 2017 Yes. And like Kirby said above, it makes it hard to oversimplify. I know nothing of the NBA but NFL league revenue going to the players is not figured simply by adding everything up and subtracting all the salaries. The 48.5% figure doesn't mean the salary cap is 48.5% of the total revenue. It means 48.5% of revenue goes towards player costs. Players pay (out of their pocket) for almost nothing during the year. The team picks up the tab but those expenses are figured in as player cost. There are many player costs computed (and of course, many more players than in the NBA). Among them are normal benefits like pension contributions, disability payments and group insurance plans. Also worker's comp, unemployment and social security payments fall under the player costs roof. Add in per diem amounts and meal allowances along with travel and boarding expenses for players attending certain off season workouts and training camp (when there are almost twice as many players), team payroll for playoffs, certain travel expenses, and certain expenses for numerous other things. The formula dedicates 48.5% of the total revenue for total player costs. Then it subtracts all of the above and sets the team salary cap by dividing what's left by 32. Then teams are required to spend (on average) at least 95% of that amount. PS: I update my research to reflect your information. Thanks. My research said:......................................................................................NBA...............................NFL salary cap..................................................................................................$2.970 billion.................$5.344 billion avg salaries...............................................................................................$6 million.......................$2,276,949 league total revenue..................................................................................$8 billion.......................$14 billion % of total league revenue going to players contract "SALARIES".............37%..............................38%
Recommended Posts