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The National Football League payroll cost function and labor market institutional changes
Author(s) -
Brook Stacey L.
Publication year - 2019
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3087
Subject(s) - payroll , league , salary , football , club , collective bargaining , payroll tax , function (biology) , economics , business , labour economics , panel data , advertising , public economics , accounting , political science , market economy , econometrics , physics , astronomy , evolutionary biology , biology , law , medicine , anatomy , income tax
Sports club payroll costs typically comprise over 50% of sport clubs' total operating expenses, but little is known empirically about this largest component of club costs. Using data from the National Football League Players Association Salary Cap Information System from 1981 to 2000, a National Football League club payroll cost function is estimated to examine the impact of labor market institutional changes (strikes and collective bargaining) and to test existing theoretical sports club cost functions. As expected, strikes have a negative effect on total payroll, and the two collective bargaining agreements had opposite effects during this time period. Additionally, empirical support is provided for the standard two‐team sport league cost function.