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The Impact of Salary Cap Violations in the NRL

Author

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  • Thomas Longden

    (FEEM, Fondazione Eni Enrico Mattei)

Abstract

A salary cap has been in place in one of Australia’s most popular professional sports since 1990. Since 2001 there have been multiple cases where rugby league teams were found to have notably violated the salary cap. Separate incidents were found to have occurred at the Canterbury Bulldogs, the New Zealand Warriors and the Melbourne Storm. In recent research, these salary cap breach amounts have been attributed to an improved home team win record in the case of the Melbourne Storm and the Canterbury Bulldogs. This article discusses recent work conducted by Longden and Kannard (2014) to calculate the impact of these salary cap violations.

Suggested Citation

  • Thomas Longden, 2014. "The Impact of Salary Cap Violations in the NRL," Review of Environment, Energy and Economics - Re3, Fondazione Eni Enrico Mattei, May.
    • Handle: RePEc:fem:femre3:2014.05-01
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    More about this item

    Keywords

    Sports economics; Salary cap; Rugby league;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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