NBA Salaries: Money Tree or Money Pit

Document Type

Article

Publication Date

2009

Department

School of Business

Abstract

According to popular perception and the assertions of franchise managers, sports franchises in the United States are operated as for-profit businesses. One premise of operating a business for profit is that investments in the business are undertaken with the expectation of producing a profit either now or in the future. The choice of inputs and their cost is a strategic choice in the management of a business. This research examines player salaries in the NBA and the choice of player salary cost level as a strategic variable. It compares player salary cost and operating income to determine if there is a positive relationship between these two elements.

First Page

81

Last Page

86

Volume

8

ISSN

15441458, 19396104

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