Special report
February 24, 2021, 5 p.m.
As a rule, professional sports teams that spend more money on players are more successful. In recent years, American sports leagues have put financial restrictions on teams to ensure a level playing field – either a salary cap or a luxury tax for teams that spend above a certain threshold on their payroll. Despite these limitations, the teams that have won the championship have typically been in the top 10 editions since their inception. But if teams draw wisely and negotiate wisely, they can win championships despite being spent by the majority of their opponents.
Wall Street has been checking data from USA Today and the sports contract website Spotrac around the clock Identify the teams that have won championships on a budget. These NBA, MLB, NHL, and NFL teams have been ranked based on the number of other teams in the league had bigger payrolls in their title winning season. We’ve included modern-era teams in each league, either during or just before financial fair play rules like the luxury tax or wage cap were passed. This period spans 20 to 30 years for all four leagues.
The key to winning a championship cheaply is finding talented young players. Rookies, especially those drafted in later rounds, sign far less lucrative contracts than players who have proven they can make it as professional athletes. Young players, who can contribute to team success while taking a smaller share of the team’s payroll, enable the front office to sign high-priced veterans and form a well-rounded team that can battle for titles. Each of the teams on this list includes players who will become superstars later in their careers. These are the youngest players to dominate their sport.
These cheap rookie deals don’t last forever, however. Young players who contribute to titles can use their success as a lever to negotiate more lucrative contracts. Patrick Mahomes, who led the Chiefs to a Super Bowl in a rookie deal that cost Kansas City less than $ 4.5 million in 2019, is likely to soon make over $ 30 million a year. His teammates Tyreek Hill and Chris Jones each cost Kansas City around $ 2 million last season, but both will make over $ 16 million in 2020. Players who deserve these mega deals must keep playing at a high level or they risk taking their team’s chance to succeed. These are the most overpaid athletes in professional sports.
Click here to see teams that have won a championship on a budget.