Real-Time Salary Cap Management

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It is absolutely necessary for professional sports teams to manage their salary cap: Regulations imposed by leagues to help keep teams’ overall costs down. Salary caps also help level the playing field between rich teams and smaller clubs. The process of managing a salary cap at the moment is full of spreadsheets and chaos.

As athletes are moved between the minors and the pros, traded, and reach different bonuses throughout a season a team’s salary cap changes right along with each decision. Understanding with real-time communication how a rookie plays their 11th vs 12th game in the majors might drastically impact a teams cap is important. Yet as it stands the process requires hours of management outside the hands of the decision makers.

CURRENT PROCESS →
Spreadsheets on Spreadsheets

Teams have to use traditional excel spreadsheets to manage multiple types of player data - from contract details to game statistics. General Managers have to maintain organization of multiple spreadsheets. In different sports codes, a GM may have different spreadsheets for different aspects of the team. For example relief pitchers vs fielders, or defensive line vs offence. The information then has to be consolidated into one spreadsheet to understand how a defensive line change may impact the whole team. Multiple spreadsheets, with multiple versions, results in multiple mistakes costing the team in multiple ways.

Rules and Regulations

Every time a manager decides to move a player around from the minors, or vice versa, salary cap regulations must be considered. Currently, who and how these numbers are managed is league dependent. For the most part, teams are responsible for making sure all their decisions meet their salary cap requirements for when they are audited at the end of each season. Sometimes the league also has teams of people helping manage each team’s salary cap throughout the course of a season, as decisions are made and changes implemented. It takes an immense about of time and energy to make sure every decision you make as a General Manager fits into the rules and regulations set out by the league.

MAKING YOUR LIFE EASIER →

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Through STG’s Smart Athlete Management (SAM) Application, salary cap becomes drastically easier to maintain. All athlete information is stored in a secure distributed database. As a General Manager moves an athlete into the lineup, Artificial Intelligence automatically calculates the effects of the change on the team’s salary cap. With all the rules and regulations of the league embedded into the application, it is able to provide immediate, real-time feedback on how different options will affect the team financially. Therefore reducing the time and headache of waiting for the numbers to be crunched and verified by the team’s accountant.

Blockchain Secure 

By encoding athlete contract data into the blockchain, barriers between data silos are broken down. Thus athlete data can co-exist with league data, team data and Player Association data. A distributed database provides a secure network allowing the different nodes of data to interact. It is with this communication ability that allows a GM to receive immediate feedback on how a change in their lineup will affect their salary cap.

Blockchain technology provides a layer of trust and transparency within the ecosystem. When encoded into smart contracts, all salary cap rules/regulations will provide immediate feedback to the General Manager. If a change does not meet regulation, the feedback is instantaneous and requires no manual intervention or notification.

This application will save General Managers time and headaches as they work on maintaining and calculating their salary caps as their season progresses. Schedule a demo of our athlete management application today!

Return To Blockchain & Sports Part 2: Transforming Athlete Management