How does payroll in baseball work?
Just of how much the owner has and wants to pay?
2007-12-05 04:39:46 · 6 answers · asked by Chad M 2 in Sports ➔ Baseball
Yeah I know what you mean, --> Yankees.
Cause Illitch owns the Wings and Little Caesars so it seems he would be more then capable to pay big name players. Not to mention he had to cut down the Red Wings payroll from 200 million to 39 million cause of new cap rules.
2007-12-05 04:46:43 · update #1
yea...no salary cap..if you have big bucks--spend it!!
But that doesn't necessarily mean you're going to win a championship!!
2007-12-05 04:45:13 · answer #1 · answered by kbenson55 4 · 1⤊ 0⤋
Understand the owners and the teams they own are 2 separate entities. As an example: the NY Yankees are by far the richest team in all of baseball, George Stienbrenner is not even close to being the richest owner or even one of the richest owners. Even if an owner owns every share of the team, they are still 2 separate entities and one has nothing to do with the other.
Now getting back to your question, teams USED to be able to spend any amount they wanted on payroll, even if it meant they had to borrow the money. Today, when a team signs a contract with a player, the team can only spend what they can afford, at the time the contract was signed, and are no longer able to borrow that money to pay the salaries, even if it meant they had to borrow the money from the owner. So even if Bill Gates owned a baseball team, the team can only spend, on payroll, what the team itself can pay, the fact Bill Gates, as an individual, is very wealthy means nothing. Even if Bill Gates owned the entire team all 100% of it's shares, he is not able to lend the money to the team for payroll.
Other than what the team can afford, there is no limit on what they can spend. If the Yankees want to spend $300 million on salary, they can providing they can afford to pay the $300 million without borrowing it.
2007-12-06 09:19:10 · answer #2 · answered by pedrooch 4 · 0⤊ 0⤋
Basically, the owners can spend however much money they feel necessary in order to win, or lose.
Pro athletes are so overpaid though. The maximum the best player should be able to make per year is 2 million. There are people who have nothing and there is no reason these guys should be getting paid this much to play a game.
2007-12-05 13:15:26 · answer #3 · answered by Anonymous · 1⤊ 1⤋
My understanding is that the Owner gives an amount as to what he/she is willing to pay per year for their team. That dollar amount is considered the payroll. That payroll then gets divided amount players based on the contracts they sign or agree too. I believe the owner has to pay for the entire thing. If I'm wrong, somebody correct me. But, I think that's it.
2007-12-05 12:45:51 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Pretty much. There is a luxury tax for those who spend above a certain amount, but the owner can spend as much as he wants.
2007-12-05 12:43:20 · answer #5 · answered by daniel 4 · 2⤊ 0⤋
No limit
spend what ever you want.
2007-12-05 12:42:38 · answer #6 · answered by Fuzzybutt 7 · 1⤊ 1⤋