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 (Research - C1)
ISSN:	1030-7230
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.
Date Deposited:	13 Sep 2009 23:29
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