Why do so many commentators on football not understand economics?

There is actually some change in the regulations surrounding the Premiership in the upcoming season, which began in earnest 45 minutes ago.  Matt Slater at the BBC discusses the financial ones, while there are also squad limits now.

I’m just getting tired of people commenting on the problems with football, and proposing limits like salary caps, to solve all problems.  Everyone who studies economics though, or even studies mankind, knows that if you put some arbitrary cap on something like a salary, clubs will just find other ways around it.  In rugby league’s Super League, WAGs get paid fat sums for spending an hour in the club shop or behind the club bar.  It’s just too easy to find other ways to make the payments to attract the best players.  Of course, Slater is also talking about more transparency in financial dealings.  A salary cap is a perfect way to ensure much less transparency.

Yet people still propose such useless measures. Why?

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One Response to Why do so many commentators on football not understand economics?

  1. Shawn Weisz says:

    How can you say that a salary cap will not work? It has done wonders for the NFL, among other factors to make it a financial powerhouse (such as revenue sharing).

    I can not claim to have the same understanding as the bloggers on this site as to the financial workings of the sports world at large, but it seems to me that the NFL has certainly implemented a salary cap system that is working.

    The NFL salary cap model has made for fewer dynasties, while there are still perennial powerhouses in the league there is more competition and every year almost every team has a legitimate chance to make it into the playoffs.

    Thank you for your insight to my question.

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