Date Presented

Spring 3-31-2010

Document Type

Thesis

Degree Name

Bachelor of Science

Department

Communication Studies

First Advisor

Dr. Dan Messerschmidt

Second Advisor

Dr. Joe Turek

Third Advisor

Dr. Kate Gray

Abstract

This thesis is a microeconomic study of labor unions and a business analysis of a professional sports industry. It will examine the effects of the salary cap in the National Hockey League. The 2004-05 NHL season was cancelled due to a lockout because the National Hockey League Players' Association and the team owners could not come to an agreement on salaries. As a result, the Players' Association and the owners came to an agreement that included the implementation of a salary cap and revenue sharing. The purpose of this thesis is to determine whether or not the implementation of the salary cap was beneficial for the National Hockey League industry and how the labor strike affected revenues. The examination of the performance of the league's teams and total revenues versus pay will compare and contrast a few years prior to the lockout to a few years after the lockout. The differences in this data will demonstrate the effect of the lockout on the performance of the teams and the revenues of the league.

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