s success or failure. In the sports industry, management is responsible for the success of individual organizations as well as overall success of leagues or associations. Management of organizations disseminates many rules and regulations to individuals to insure the smooth transition from loss to profit. The main task for the management of an organization is to make a profit while entertaining fans by placing the most competitive team on the field. Although most organizations are strictly profit driven, there are still organizations that are more concerned with the actual on-field success of a team. While managers try to accomplish these goals, there are guidelines and obstacles that keep them from doing so. There are labor issues that act as constraints for managers to carryout their functional duties. In sport, there are several types of labor costs, which discourage a manager from making an easy logical decision to making an economic business decision. Being that an organization is acting as a profit driven business, the manager must act as a representative of the organizations' moneys. So, in order to remain a profitable organization, the revenues must exceed the costs. There are several costs that are incorporated with a sports organization. These costs may include, players salaries, travel expenses, game day expenses, player development, administrative costs and the final costs being, player fringe benefits, such as pensions.Player's salaries are the largest expense which organizations have to deal with. The costs of player's salaries have increased greatly over the course of the last 18 years. "From 1981 to 1994, the mean salary in MLB increased from $303,400 to $1,182,000; the mean in the NBA from $295,200 to $1,380,000; in the NFL from $147,600 to $737,000; and in the NHL from $177,100 to $525,00." (Sheehan, 1996) There have been a few reasons for this average increase of 9.5%. The first being the increase in pro...
