The impact of salary dispersion and performance bonuses in NFL organizations

Purpose - This paper aims to evaluate the effects of both salary dispersion and incentive pay on team performance usin data complied from the National Football League over the years 2000-2007. Design/methodology/approach The authors consider the effect of pay structure on both in terms of on-field and financial performance. Finding A relationship between improved on-field performacne and increased payroll. Research limitaions/implications - The findings are of particular interest because a conflict of objectives is seen. Practical implications - This study is unique in addressing how salary dispersion in combination with incentive pay correlates to team success as measured by both winning and revenue production. Originality/value- The study is unique in that most previous empirical work analyzing payroll structure in sport organizations does not consider disparity in conjunction alternative methods of improving performance through structure of compensation.