More money, more problems.
This certainly is the case with many professional sports leagues, most recently the NHL, which despite months of negotiations on a new Collective Bargaining Agreement (CBA), has cancelled the first two weeks of the season (82 games total). If an agreement is not reached soon, the season may be cut further or even postponed altogether.
This is bad news for the league, which previously cancelled its entire 2004-05 season primarily over failed the integration of a hard salary cap. The NHL claimed hockey clubs spent nearly 75 percent of gross revenues on player salaries -- a much higher percentage than competing leagues. Why do NHL owners push desperately to control salaries? One reason is that the league reported teams collectively lost $273 million in the 2002-03 season.
The CBA signed in July 2005, which resulted in the induction of a hard salary cap with a revenue-sharing model, proved to be merely a band aid. Thus, the contentious negotiations have begun again. In fact, the expiration of the last three CBAs have led to lockouts. While the NHL hasn’t been the only league to undergo labor stoppages in the past decade, it is the only major professional sports league in North America to lose an entire season to a labor dispute.