The salary cap proposal of the G‐14 in European football

Abstract

In this paper we try to show that a salary cap, as it is proposed by the G‐14, the association of the 18 most successful clubsin European football, is fundamentally different from the salary cap as it has been introduced in some major leagues in the U.S. Whatever the objectives, the impact of these two types of salary caps on the distribution of playing, talent, which is the most important determinant of the competitive balance in a sports league,’ can be very different, depending, among other things, on the cost structure of the large and the small market clubs.