Use of salary caps in professional team sports and the restraint of trade doctrine

Davies, Chris (2006) Use of salary caps in professional team sports and the restraint of trade doctrine. Journal of Contract Law, 22 (3). pp. 246-267.

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Abstract

A salary cap system is presently used by both the AFL and NRL with the stated objective of creating a more even competition. Although the salary cap can be viewed as creating a situation where players are being deliberately underpaid, the author argues that there is overall benefit, even to the players, in having a salary cap in operation. Such benefit includes a more even competition, which then provides for a more stable financial situation for the league and the players, and a more interesting competition for the spectators. The author therefore argues that, after applying the Nordenfelt test, salary caps in professional team sports do represent a reasonable restraint of trade. It is also suggested that the principles of contract law play an important role in protecting the rights of the players.

Item ID: 4659
Item Type: Article (Refereed Research - C1)
Keywords: restraint of trade; salary caps; sports law
Additional Information:

Reproduced with permission from LexisNexis. Published in the Journal of Contract Law: Davies C. (2006) The Use of Salary Caps in Professional Team Sports and the Restraint of Trade Doctrine. Journal of Contract Law 22: 246-267.

ISSN: 1030-7230
Date Deposited: 13 Sep 2009 23:29
FoR Codes: 18 LAW AND LEGAL STUDIES > 1899 Other Law and Legal Studies @ 100%
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