Financial Inequality

Will financial inequality within leagues destroy competitive balance?
Not necessarily. It all depends on the “upset frequency” of the sport. The drama created by uncertainty provides a compelling reason to watch and attend the games. Pro football has the lowest upset frequency of any major sport — so the NFL needs its salary cap to engineer parity and stoke the drama. Meanwhile, Major League Baseball has a high upset frequency; despite financial inequality, the uncertainty of who will win is still compelling.