The purpose of introducing this system is to make it easier to manage business by making the upper limit of player labor costs, the largest cost in club operations, or the break-even point, visible. This is also to make it easier to transfer profits above the break-even point to the business side, mainly to entertainment and staff labor costs.
In the longer term, we believe that if the league does not make it possible to improve the treatment of teams, front office, and staff other than players, it will affect the second career options of current players. I think this is an important approach for the players' retirement as well.
Especially in NA, player labor costs continue to skyrocket. While this may be happy for the players in the short term, it also causes difficult problems. It means that the owners' investment of funds will accelerate in order to compensate for the rising costs. There is no telling how long this will continue. And for the owners, it wasn't supposed to be this way...
There is a fear that the club will not be able to make up the amount of money it can make up, and that it will not be able to invest in improving the treatment of front desk staff and the environment, leading to turnover and weakening the business front.
If this happens, the fundamentals of management, such as attracting customers and sponsor sales, will collapse, which may lead to a decline in the quality of team strengthening and fan service. We are also concerned that if it becomes standard for owners to make large financial contributions, it will dull the field's serious sense of expenses. If somewhere along the line, a club whose owners pull out could become a threat to its survival.
Some people turn a blind eye to these realities and say that it is good if you can finance winning, or that it is a good thing that players' salaries are going up. However, if we don't maintain growth and health, it will eventually get tougher or the league will become a contest of how much money the owners can contribute.
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