Sports and the economy: Who benefits economically from sports?

http://www.spotrac.com/blog/nfl-minimum-salaries-veteran-discounts/

Left to Right: Arthur J. Ronney II (Team President) Ben Roethlisberger ( Steelers Star QB) Daniel M. Rooney (Chairman of the Pittsburgh Steelers)

          From what we learned on October 16^th and 21^st in American Sport in the 21^st Century, there are two groups of people that mainly benefit economically from sports.  We learned that both the athletes and the owners of the organization benefit the most in the sport industry.  In a recent article we read regarding the NFL, it stated that the salaries have increased by $15,000, and up to $420,000 for a rookie in 2014.  This correlates to what we have learned in class.  First, we learned that money has become the foundations of sport at all levels.  In the NFL, they have what is called a salary cap.  This is a limit that a team can spend on players’ salaries (per player and per team).  Second, we have learned different terminology that regards salary caps and spending for each organization.  Sticking with the NFL, they have what is called a hard cap and hard floor.  A hard cap is the maximum amount that cannot be exceeded.  A hard floor is the minimum that must be spent on the team as a whole.  In the article it explained that this season of 2014, for a free agent, their salary would be a minimum of $420,000. Third, we learned that profit motive shapes owners and athletes.  For athletes, they make a profit off of salaries, endorsements, and appearance fees.  In the article, it explains that with signing a contract a player can get signing bonuses.  For example, Shayne Graham recently resigned with the New Orleans Saints for a one year contract worth $570,000.  With that, he reached his salary cap.  He then received a signing bonus of the maximum $65,000.  We learned that with a salary cap, the leagues are trying to keep costs down and balance the league.  All of these examples are obvious in the article above.