Research Paper on Player Salaries

[kg01]

I mentioned this in the (blech) insiders thread.  Found the article but didn't wanna further muddy that awful thread with more off topic stuff.

@LucastheThird and @JayBirdHawk

... here's the link, not sure if the full article is available here but I'm working to find it... 

https://onlinelibrary.wiley.com/doi/abs/10.1111/coep.12621

Leveling the playing field: The distributional impact of maximum- and minimum-level contracts on player compensation

Abstract:

Quote

How does the presence of maximum- and minimum-level contract restrictions impact (i) superstar compensation and (ii) the distribution of compensation across an industry? Using ticket price and observed player talent data from the National Basketball Association (NBA), I estimate expected salaries for each player as well as their value to the NBA as a whole. I find the ratio of actual to expected salary is 2.8%–56.9% for the most talented players, resulting in subsidization to less talented players. The findings also suggest the most talented players generate significantly more value to the NBA than their actual and expected salaries.

Long story long, top players are underpaid and owners use the excess to subsidize lower-tier players and line their pockets while claiming to be poor (I added that last bit).

[AHF]

Good read.  I've contended for a little bit that removing the max salary cap would be good for the game by preventing teams from clustering elite talent without those elite players paying a huge price.  If max is $30M and salary cap is $120M then prime LeBron is probably worth $70M to a team.  (Not from an earnings perspective like this but for what he would actually go for if people could offer more.)

[AtLaS]

I've been saying this for years.  Max salaries ensures that the very best players in the league are underpaid.  Jokic/Giannis/LeBron are making the same money as guys Bradley Beal/Lamelo Ball/Paul George, etc.  And since there is a salary cap, it is a massive advantage for the teams that have a top 5 player.

If you remove the max salary and allow the top players to get market price as in all other sports, league parity will improve dramatically IMO.