Monday, September 19, 2005

OH The Parity!!!

Say what you will about the structure and fairness of the NFL, I don't think there is any way to deny that the system has created a league where each club at least has a chance to field a competitive team. The Colts, arguable the league's best team, operate at the low end of the revenue spectrum, while teams like the Redskins & Texans pull in a ton of revenue but are hardly challenging for a playoff spot. The main reason for this is the hard salary cap in the NFL, combined with the ability for teams to cut & sign players mid-contract and dynamic scheduling based on performance. Revenue sharing also occurs for national television deals and ticket sales, but local sponsorship income and luxury suites are exempt from sharing and cause the huge gaps in revenue that exist between the small- and large-market clubs.

Despite this considerable gap, the other rules (notably the payroll cap) have caused teams to focus on building via the draft & shrewd personnel decisions, leading to an entirely new and exiting "game inside the game." This is something that is unique to the NFL and, I think, drives much of the interest in the NFL draft. Also, the market for management and coaching will continue to explode, as teams realize the playing field is (relatively) level and the only way additional funds can help is by spending more on those who make the tough personnel decisions.

Tell me if I'm way off base here, but this seems to be a good system (for fans of the sport, not just the large-market teams) that other pro leagues should model themselves after....

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