As we have learned this semester, a general phenomenon regarding the gap between the rich and poor of the world can be witnessed worldwide. That is, the rich have been getting richer, while the poor are getting poorer. One area in which this concept can be noticed in is the realm of sports. Football will be the example used, in the spirit of the recent 2008 NFL draft.

 The NFL maintains a salary cap, a system that limits each team on the amount of money they can spend on player salaries. This number has increased by at least 5% each year since 1997, and has also doubled in amount since then. The salary cap is used to balance the league in order to keep wealthy organizations from buying up the best players. Even given the cap, however, there are still strategies implemented by the wealthier of teams to take advantage of their money. Providing a signing bonus doesn’t count under the cap.  The smaller market teams do not enjoy the luxury of shelling out the big bucks for signing bonuses for draft picks or free agents, something all NFL players look for when negotiating a contract. In fact, the salary cap was originally installed because of the nascent of free agency. Less wealthy teams would be less likely to match the offer to these players, and thus have a lowered chance to attract them to their team. Coaching staff and scouts do not count under the cap, and so wealthier teams are able to invest significant dollars in these off the field positions. This is one reason more wealthy teams are then able to maintain great drafts yearly.  

Overall, the rich teams get richer in terms of the talent they have on their teams. This post doesn’t focus on revenue from TV or sources of that nature. The big market teams (wealthier) are able to get their hands on valuable free agents, while also being able to attract the best coaches and administration. This may also lead to consistently great drafts. Their continued success year in and year out makes for an attractive team to play for. The smaller market teams are able to stay competitive, but may not always find it easy to keep their players whose contracts run out at the end of the season, or stay in the bidding for a desired free agent. 

 http://en.wikipedia.org/wiki/Salary_cap

 http://www.cantonrep.com/index.php?ID=408677&Category=17&subCategoryID=26