Ottawa, Canada — The most popular professional sports league in North America, the National Football League (NFL), has the most “socialist” economic system of the four major leagues inNorth America, based on an assessment by The Conference Board of Canada – the latest in its series on the pro sports market.

“It is somewhat ironic that America, land of capitalism and free enterprise, is so fond of a league that has made sharing the wealth fundamental to its business model,” said Glen Hodgson , Senior Vice-President and Chief Economist.

In the National Football League, more than 80 per cent of league and club revenues are shared among the franchises. The NFL also has a “hard” salary cap that puts a ceiling on the amount of money franchises can pay players, one that applies equally to all teams. The one market-driven aspect is the NFL’s treatment of player talent- both in terms of the high salaries paid to top stars and the ease with which players can be discarded.

Moving from the economic “left” to “right”, the National Hockey League (NHL) is similar to the NFL in having a hard player salary cap. As part of the current collective bargaining agreement with its players – negotiated in 2005 and now expiring – the NHL has a salary floor and a complex revenue-sharing system. The NHL is willing to provide subsidies to its weaker clubs to protect the value of the stronger franchises, since bankruptcy of any team is not a good signal to prospective investors.

“The NHL model is a mixed economy which does try to equalize opportunity for all its franchises to be successful on the ice and profitable in the books,” said Hodgson. “The challenge for the NHL and its players in collective bargaining this year is to tweak this system without undue disruption to the business. Hopefully, both management and the players have learned from their experience in 2004-05 and they will not risk losing another season in these negotiations.”

Both the National Basketball Association and Major League Baseball operate much like a modern capitalist economy. In general, the financial playing field in these leagues is not level, and the largest, richest markets and teams tend to be the most successful. Top players command massive salaries, which leads them overwhelmingly to suit up for the wealthiest teams.

No league in North America, however, compares to European football (or soccer) for unconstrained capitalism. The presence of unbelievably wealthy owners, little sharing of revenue among teams and leagues, and eye-popping player salaries is reminiscent of the “robber baron” era of capitalism in the 19thcentury. Clubs are very much on their own. The current liquidation of the Scottish club Rangers FC – one of the most storied teams in Europe – shows there is little financial security or assistance to those that slip.

Image Courtesy of  Richard Paul Kane / Shutterstock.com

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The 21st century witnessed one of the most perilous and unethical alliances of mankind’s biggest foes: greed and capitalism. A system where the will or self interest emerges as a master of all human actions in the economic sphere.

There has been a change in the way organisations do businesses and there has been a change in the way businesses are being managed. With the passage of time, businesses have become more isolated from the basic idea of self-interest and more fascinated with profits, expanding their wealth based on what they see as most lucrative rather then on ethical foundations.

There is contamination of capitalism in every corner of the imagination, through the unscrupulous pursuit of profits, selfishness, and through an incorrect comprehension of the idea of economic freedom.

It is true that a farmer in the fertile English midland produces potatoes not to make consumers happy, but for his self-interest and survival. But it may also be true that if the farmer regularly exceeds his need, greed might lead to consumer concerns elsewhere, such as unjustified price movements or supply barriers.

Many illustrations, mathematically and not, can demonstrate how this system becomes contaminated. When capitalism was introduced it was hailed has a unique path to prosperity, opportunity, and more importantly, an end to inequality.

Over the years the urge to make money has killed morality. Now we are trapped in a net which was earlier believed to be a liberator from material discomfort. Greed became epidemic at all levels of commercial existence in the world.

We are living in a society where wealth commands, and those who posses wealth command the world — often in a way that only benefits themselves. The ideals of capitalism to provide opportunities that benefit everybody are contaminated by self interest, and this transition from self-interest to greed in recent years proved fatal. If the bottom line of business is profits, then it is cultivating greed and no benefit at all.

The outburst of protests across the world primarily addressed income inequality and unethical behaviour on part of entrepreneurs. Over the years, the divide between rich and poor deepened in the US, according to the Congressional budget office. Between 1979 and 2007 the incomes of the top 1% grew by a whoping 275% average, and during the same time 60% of the American middle class income grew by just 40%.

Economist and Noble Laureate Paul Krugman wrote in the New York Times that the ‘we’re the 99%’ slogan correctly defines the issue as “being the middle class versus the elite.” He also noted that the movement debunked the wrong notion that rising inequality is “mainly about the well-educated doing better than the less educated.” True enough, economic injustice is not just about education, but to fully comprehend the deep-rooted cause requires organizes and collective study.

Under an Islamic economic system we will not find any of these character-based problems or growing inequality. The Islamic economic system is primarily based on Islamic laws and principles, while capitalism is constructed upon morality. Ideally, if something is based on religion there is no danger of greed and malice, because no religion has ever preached greed. The Islamic economic system considers greed as a grave sin, so if the system tried to bring in something which is based on faith, people might refrain from evil deeds. But unfortunately Islamic economic system is hardly prevalent.

What we need is to find ways to resolve inefficiencies of the system through religious methodologies rather than criticism of capitalism.

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