Why Do Athletes Make So Much Money?
96An Inquiry Into the Nature and Causes of the Wealth of Athletes
Introduction
Alex Rodriguez is a 32 year old Miami native, and, having entered the workforce directly out of high school, currently holds down a job in New York City. Normally, at least for those entering the workforce right out of high school, attaining a good career is rather difficult. This is especially true considering that more and more employers are requiring prospective employees to attain at least a bachelor’s degree just to get into an interview room. However, Rodriguez, since the age of 18, has lived a rather comfortable lifestyle--- he never has had to worry about where is next meal is coming from, where to find shelter for himself and his family, nor has he had to rely on his monthly paycheck to sustain his family. What makes these facts even more interesting is Rodriguez’ work schedule--- he works only 7 months per year. This is because, in 2000, at the tender young age of 25, he signed a contract with his employer for 10 years and 252 million dollars--- all guaranteed salary. What is Mr. Rodriguez’ profession? He plays 3rd base for the New York Yankees. Rodriguez, all in the time it took to sign his name on a contract, quickly became the main scapegoat for a widely growing resentment in American society. This resentment is of the professional athlete. Not the athlete, so much as the salary the athlete earns for participating in an activity that is typically ascribed to the behavior 10 year old child. Are athletes overpaid? Or are their salaries justified? To progress to any understanding on this issue, four key questions must be answered:
What does the term “worth” mean, in the context of professional sports?
Who ascribes this “worth”, and why do they pay athletes such a high salary?
What is the difference, in terms of productivity, between the athlete and those with regular professional jobs?
What is the correlation between specialization and salary, in terms of the laborer?
This review will examine the various social and economic debates concerning the salaries of professional athletes.
What are Athletes Worth?
In the context of analyzing this issue of whether athletes are worth what they are paid, there must be a clear definition of the term “worth”. What does worth mean? Is it value in the sense of their essentiality to human nature? Is it their value to a society? Or does how much one produce remain the determining factor of worth?
A common sentiment of the typical sports fan is that athletes are overpaid. That is to say, athletes are paid more than their relative “worth”--- as opposed to teachers, lawyers, doctors, etc. For example, a USA Today article published in November 1994 cites a survey conducted on 2000 individuals on how adequately they feel athletes are paid. 87% of those surveyed responded that they feel athletes are overpaid, compared to nurses (10%) teachers (8%), and secretaries (2%). Sentiments have not changed much in the past 13 years. Judging from these statistics, one may infer that society views an occupation’s “worth” as its value to society. After all, nurses are essential components in American health care; teachers are essential to public education; while secretaries are crucial to various administrative tasks. Within this context of the definition, professional athletes seem to have little intrinsic value to society. They seem rather disposable. Take teachers away, and we have nobody left to teach the children. Take athletes out of the equation? We will simply have no games to watch.
This is the essential misunderstanding most people have about professional sports, according to Jimmie Lee Solomon, currently the director of Minor League operations for Major League Baseball. “Professional sports are a business. Our product just happens to be putting highly paid players on the field or court” (Corbett, 1995, p. 85) Therefore, Solomon says, we must not judge athletes based on their intrinsic value to a society; rather, we must judge them as products that create revenue. When the product happens to be a human, such as is the case with athletes, actors, musicians, or writers, that human must be compensated. Economics professor William L. Anderson expounds on Solomon’s point in an article entitled, “In Praise of Athlete’s High Salaries”. Citing the Statistical Abstracts of the United States (1996), he points out that Americans spent close to 13.1 billion dollars in 1995 on commercial sports. That number has grown even more significant in recent years. Clearly, Anderson points out, professional sports is a very lucrative business. These sports create significant revenue from the fans that pay to see them. Naturally, he concludes, an athlete’s worth should not be examined based on intrinsic value, but rather monetary value. How much money does the athlete create?
Who Ascribes this Worth?
Solomon and Anderson thus conclude that fans cannot be the people who ascribe worth to professional athletes. After all, an athlete’s only concern is whether his employer thinks he is worth a high salary, not the fans. True, higher fan consumption means higher revenue which means more worth, but fans are not the people who write the checks. This responsibility falls on the owners of these professional teams. Just as any CEO of a Fortune 500 company, it is the owner of the professional sports franchise that has the most at stake when examining whether an athlete is worth the investment. Therefore, he must examine this investment carefully; for if he doesn’t, his company will lose money and he will go out of business.
How does the franchise owner examine a player’s worth? In an interesting study entitled, “The NBA and the Influx of International Basketball Players”, economists Erik Eschker, Stephen Perez, and Mark Siegler examine the process by which an owner, or whoever within the organization has the responsibility of evaluating talent, determines a player’s worth on the market. They use the structure of the National Basketball Association as an example. As long as teams are able to buy or sell players, they say, NBA salaries will resemble an auction- like process (p.1010)
The authors point out that the bids from the teams are determined upon a given player’s Marginal Revenue Product (MRP). The team looks at performance and other factors like age, experience, height, etc. in order to gauge what the player’s market price is. In this environment, we should expect to see the player to be paid close to the highest expected MRP (p. 1011). This judgment is based on limited information and uncertainty, however, so bids are actually more likely to be far above or far below the actual MRP. Thus we find that the bid that is far above the actual MRP wins the player, and we find the case of a player being paid far more than he is really “worth” (p. 1012). This seems to suggest that, while some athletes may in fact be overpaid, it is in relation to other athletes, rather than to the rest of society. This explanation however, while partly justifying “how” athletes are paid so much, does not entirely explain “why”. Why don’t the all the owners get together and decide upon a system of worth such that overbidding doesn’t become a necessity? This is the type of question that would be raised by Adam Smith, the widely renowned “Father of Economics” and author of Wealth of Nations. There are fewer owners than there are players. Thus, they are more easily able to gather together and force the players to comply with a restructured pay system. The owners will always be able to hold out longer; they have more spare capital at their disposal. Why don’t they use this leverage? This failure has not been for a lack of trying. Collusion, as it is so called, was prevalent in Major League baseball in the mid 1980’s. As such, a rule was negotiated in the Collective Bargaining agreement prohibiting such action, whether on the part of the owners or the players.
What Do Athletes Produce?
It is quite safe to say that the salaries of various professional athletes are directly proportional to the revenue earned by their respective franchises. Tom Hicks, the owner of the Texas Rangers, was the man responsible for rewarding Rodriguez with the most significant contract in the history of professional sports. Twenty-five million dollars wasn’t merely an arbitrary number, however; Hicks, like other franchise owners in the MLB and other professional sports, had to estimate Rodriguez’ worth in terms of extra revenue he created.
Here we come back to the MRP figure, which Eschker, Perez, and Siegler explain more in depth. In essence, this figure calculates the change in total revenue from the franchise when employing one more unit of labor (p. 1011) --- in Hicks’ case, this unit of labor comes in the form of Alex Rodriguez. Furthermore, the cost of employing Rodriguez, according to this theory, must not exceed the extra revenue he generates for the Rangers. Hick expects Rodriguez, with his vast array of skills (hitting for power and average, superior baserunning, defense) to help the Rangers win more games. If the Rangers win more games, fans will buy more tickets and more memorabilia, networks will pay more to broadcast their games, and the team will generate more revenue. If this revenue is less than the 25 million dollars it costs to employ Rodriguez, then the investment is seen as a failure. However, if the revenue exceeds the costs, then Rodriguez’ salary is justified.
The idea that an athlete’s high salary can be “justified” is indeed absurd for some. Take for example an excerpt from this editorial in a July 2002 issue of USA Today:
“Some sense of sanity has to return to the salary structure of professional sports. It's absurd that a ballplayer makes millions of dollars while research analysts at places such as the Centers for Disease Control and Prevention get peanuts by comparison for doing work that saves lives. And look at what a small salary a schoolteacher makes.”
This is a thinly veiled adaptation of what Smith referred to as the “diamond-water paradox”. Water, which is essential to our existence, is worth far less to us than a diamond, which is of relatively little ultimate significance. Why, then, is the diamond worth more on the market than water? Anderson, referencing this paradox in his article, explains that the diamond is worth more than the water because water is far more abundant than diamonds. Because diamonds are relatively rare, the demand for them is high, and thus the price is highly elevated. Water, on the other hand, is relatively abundant; thus the demand is low and the price is low. It’s the basic economic theory of supply and demand. Professional athletes, far less abundant than teachers or research analysts, are worth far more on the open market. How many people out there can reproduce the unique skill set Alex Rodriguez has? Or Shaquille O’Neal? Or Peyton Manning? In contrast, how many people are there who can reproduce the skill set of a research analyst, or a teacher? Economist Sherwin Rosen will explain this dichotomy further in-depth.
How does Specialization Lend to Salary?
The interesting phenomenon of the athletes’ salaries, explained by Rosen in his article, “The Economics of Superstars”, makes the reward structure in sports differ from those in other professions. The business of sports, unlike other professions, lends itself to a more significant inequality with regards to distribution of incomes (p.449). Moreover, Rosen finds that this reward structure is highly non-linear--- the salaries of athletes rise in great disproportion to natural ability (p.451). For example, if we compare the skill set of Alex Rodriguez, against, say, his teammate Derek Jeter, we find that although their traits might be somewhat different in terms of specificity, they as players more or less have the same impact on the team. The disparity in statistics such as home runs, runs batted in, stolen bases, errors, etc. while noticeable to the ardent baseball fan, aren’t that great between the two. Yet Jeter, on average, earns 5 million dollars less than Rodriguez on an annual basis. Furthermore, when we compare the salaries of Jeter and Rodriguez to a player making the league minimum ($327,000 as of 2007), we may find a great disparity in statistics, but not so much in terms of overall skill level. Why, then, does Rodriguez earn ¼ more salary than Jeter, and over 75 times the salary of a player making the league minimum? And why don’t we find this salary structure in other professions?
The seemingly disproportionate salary structure in sports, according to Stefan Szymanski, is not the result of conscious mechanism design, but of intense competition. Professional sports is the prime example of what Szymanski calls the “tournament theory”; even though the difference in ability may seem small, winning is the vehicle that drives salaries (p. 469). Fans are much more inclined to pay to see the absolute best players in their respective sports; not the second-tier players. Though the difference in ability may be small, winning creates a vast separation between the best and the second best. Thus, we find that relative ability, rather than absolute ability, is of supreme importance.
This is not the case so much in terms of a teacher or a research analyst, or an electrician. Rosen indicates that some tasks have become so routine, so circumscribed, that any competent person will achieve the same outcome (p.455). As such, it is much easier for one to attain the skill set necessary for such a task. For example, there is not much difference in terms of outcome when the best electrician wires a house as opposed to the second-best electrician, or even the worst electrician. (There is a widely quoted joke in the medical business: What do you call the guy who finished last in his class at medical school? Doctor.) This is not the case is sports. The outcomes are more disparate. Because winning is at a premium, owners will go out of their way to find the superior talent, however small the difference in ability may be. According to Rosen, sports are such that poor talent is an inadequate substitution for superior talent (p.454). In other words, athletes are far more specialized than their counterparts in other areas of professional labor--- increased specialization leads to increasing disparities in relative income. Rodriguez, however small the difference in ability between he and Jeter, is worth 150% Jeter’s salary because his slightly superior talent is more likely to win games and create revenue.
Conclusion
The economics of the market for professional athletes are a conundrum that owners of professional sports franchises face every day. If Tom Hicks is faced with signing one of two players (in 2000 the players in question were Rodriguez and outfielder Manny Ramirez), he has questions to ponder. Which player has the superior talent? Which player is more likely to help the team win games? Which player is more likely to draw fans into the ballpark and sell jerseys? (Ramirez eventually signed with the Boston Red Sox for 8 years and 160 million dollars). In the arena of professional sports, such difficulty in assessing small differences in ability can often seem overwhelming, and might lead to panic on the part of the owners (Eschker, Perez, Siegler, 2004, p. 1010). This panic, stemming from the perpetual uncertainty of talent assessment, may greatly exaggerate an athletes’ worth on the open market, or, less often, even undervalue his worth. Whatever the case may be, most every economist agrees that the common man’s animosity towards athletes’ salaries most likely stems from jealousy and envy rather than economic theory.
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I think that athletes make tooooooooooooo much cash and that they should give some away to all the poor and needy people of the world so that world hunger and poverty may some day end in this world and peace will be throughout the universe!!!!
I certainly agree with your sentiments--- our soldiers deserve the utmost respect and admiration. However, the article explains precisely why athletes make as much as they do. Salary is by no means a measure of intrinsic worth or value.
bob thinks that athletes get paid to much. bob also thinks that if they want to be athletes for a job they should appreciate what they are getting, like fans from all over the world yet they don't they think there better then everyone else who is under them on the social scale. bob also thinks that they get way to much money it's not fair when you see people like doctors and other people who occupations such like that but to have athletes make millions just for hitting a ball with a bat and running to bases or a hockey player to skate down an ice rink with a puck and then try to shoot it on a net and score well they make millions every year isn't fair there making mmillions and there not helping anyone why not give the money to people who truely need it?!? doctors save lives they work long hours and have to deal with people with really bad condtions and then sometimes they might get attached to somebody and that person might not end up making it out of the hospital! they have hard lives with a stressful job...athletes play 1-2 hour game and then there work is over all they have to worry about for stress might be autographs but thats not important!
those are my thoughts and feelings about pro athletes and there salaries!
sincerly, Bob
athletes should on ly be able to get a certain amount of money and not a penny more.
i understand that they are working for it, but the realy question is is that do they really disserve it?
I agree with mcamp. I would also like to add that part of the reason that athletes are paid so much is because there is the ability to. Think if you were to reverse the salaries of a teacher and a pro athlete. How can you pay a teacher of a public school system that kind of money? Even a private school system? Things such as school need to be accessible to everyone even of the lowest economic status. And with things such as colleges and universities there are tons of people who probably make an outstanding salary. Think about prestigious universities and the cost to attend them. Someone high up on the corporate latter is making a salary they don't deserve because the teachers for sure aren't. And even still a portion of the money they make has to go towards not only paying all of their teachers but textbooks, upkeep of their campus, lower workers in offices and janitorial duties and other such things. The amount of revenue they create is on average far less than that of a professional sports team. It's sad but true that if you think about ticket costs for a single game, say Barcelona FC and Real Madrid in Spain, the tickets can range from $50 and up. Now their stadium seats over 100k people, and with those two teams being the best in their league and 2 of the most popular soccer teams on the planet, they together and separately sell out their stadiums on various occasions. And all of this revenue goes towards this single team who has 18 players, probably 2 trainers, a manager, a single stadium, and workers in the stadium. The revenue generated from a single game for that much smaller of a ratio of expenses means they have the extra. And just like supply and demand whatever is in demand goes up in price. So the players that generate the most revenue are wanted by everyone, therefore if you aren't willing to pay a higher price, someone else is in order to make themselves more money. And even if you say teachers and doctors do better for our society, look at the ratio of people who participate in sports as opposed to who makes it to high level professional levels. If you think of it in this way being a professional athlete is a much harder profession to attain. Because no offense, but anyone who puts their mind to it can be a teacher or a doctor. This is not the case in sports. Someone can devote their entire life to sports and give everything they have but still never make it. It takes a special level of skill most people don't have in order to be at the level these athletes are whether you like it or not. The really high paid athletes are something special. Not evey athlete makes an outstanding salary. The ones who do are 1 in a billion. They do what they do better than 99.9% of people on the planet. How many people in an average profession can say that they do what they do better than everyone else who has ever done what they do? Because the circumstances allow it, athletes are paid highly. And there's also the idea that athletes, actors, and such stimulate the economy. They donate, and most of the time people in these professions are less conservative with their money. They're more likely to have the big buy or purchase spontaneously. As much money as they make they also put a huge amount of that back into the economy. People are only ever focused on what they make and what they have rather than what they have actually does. How likely is it a teacher would spend as much of their money when they are in a profession that is mostly selfless? So it doesn't matter whether you think they should be paid a lot or not because there are so many reasons for it. Shit i'd be all for a doctor getting paid higher, but in that case more people would have to get sick and healthcare costs would have to lower. It's not ideal to get sick, it's not something you want to spend money on. And when the average income in most places can't afford health care without insurance it's no surprise that doctors don't get paid as much. Especially when so much of that money goes into research to help prevent illness or improve methods and tools. Most people who think athletes get paid to highly either never played a sport competitively in their life, or they're mad it can't be them so they nit pick on them and say it's not fair.
Simon Says, I think you summarized the tone of the article perfectly. Unfortunately or not, uniquely talented people, no matter what profession they are in, receive very significant rewards for their singular talent. Just like Alex Rodriguez and other superstar athletes earns in excess of 20 million dollars a year, including endorsement deals, the most talented (at least, those who work for a salary) doctors earn hundreds of thousands and even millions of dollars a year, and the most talented lawyers can earn in excess of a million dollars a year, and even the most talented writers can earn millions (in JK Rowling's case, hundreds of millions) per year. The list goes on and on. The more unique your talent, the more people will reward you to have you exhibit that talent. Can we live without a lot of "high-earning" professions? Probably. But if your talent is so great that so many people want to pay to see it, then you will be rewarded handsomely.
This is the way i think of it:
I think athletes get paid what they deserve. I mean look at Lebron James. He has his own Shoe, he is a talented basketball player, he takes time out of his own life to help other people (NBA CARES PROGRAM) and he and other athletes work hard every single day. People dont know how hard sports is. My friend, her dad is Clyde Drexler (Former Portland Trail Blazer Legend). He said that almost Every Day they would practice for 3-6 hours, they would go to Training Camps, and do all these things every day. He also said they get paid alot NOT ONLY because they are very talented and wanted, but they have to put up with bull shit that people dont really know. etc: waking up at 4:00 am to go to practice untill 11:00, sometimes car-pooling across the country just to get to a game, getting injuries, being sick and having to keep practicing, etc. I mean there is alot of behind the scenes stuff that happens in sports, which is why I think athletes get their fair share of money.
Yeah, baseball is ridiculous. Not only is there no salary cap, but all contracts are guaranteed. Once you sign one big deal, what's the motivation to keep performing?
They should really consider setting up a system more like football- reasonable cap with partially guaranteed contracts.
This is a really good hub. Well done. The economics of professional sports are totally different than those of other industries. Great job explaining that.
they get overpaid
think of the physical risks althletes endure.
they train every day, working themselves to the bone!
and what happens when they retire? they still pay the price with their health issues.
athletes deserve the money. besides, its not like the government pays them!
Thanks for the great Hub!Such a cool and nice to glance up this site.. Thanks for the reminder to all the fanatics! Such a cool and nice to glance up this site..
I agree with the above - too much - you did a great job of capping worth and gave a valid effort. I do respect you for that can do not disagree with your definition but also feel that their salaries are completely ridiculous.
great hub though! - you get me thinking (esp. about how i need one of these talents)
great hub, in baseball the salaries are unimaginable
Athletes get millions of dollars because we buy the jerseys and merchandise and tickets, and watch the games on tv
Great hub. I have to say that athletes make the money that someone is willing to pay them.
foget all atheletes cause im not makin that much money!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
yall think ur all that cause u get so much money but u aint worth more then a dollar
Why do the owners make so much? Why is it wrong (in the public's mind) for the ones doing the actual work to get paid their fair share, but nobody even questions the fact that the owners make so much that they easily afford to pay hundreds of guys those "outrageous" amounts?
Its wrong because they dont do anything thats important.. anyone can play a sport just because they play it well doesnt mean they should get massive amounts of cash to do it. As for the owners they fork out massive amounts of cash for you to be able to watch that person run around a base or throw a ball through a hoop. Why not be humble and live like a normal person in a nice upscale house for a fraction of the price you pay for a 20 bedroom mansion and 30 cars, ect ect. Use the money thats saved from that to help schools and the homeless ect ect. Same goes for hollywood and the music industry really dont need to charge 15 bucks for a damned album, the cd itself costs like a fraction of a penny to make. Greedy sobs all of em.
My personal thought about professional athletes is that they make toooooo much money. They should get as much money as other people make, because it isn't fair if all they are doing is throwing or hitting a ball and making thousands of dollars for it, while people that actually deserve it are getting very little money, and they can't even pay most of their bills because they don't have that much money to spend it with.
All athlets earn there pay your all stupid shutup
lol
I GOT AN IDEA !! every1 stop paying attention to the entertainment industry. I mean stop buying their products, stop watching their movies, stop watching their games, EVERYTHING. That'll make the NBA and all others go bankrupt !! lol... lets pay attention to the ones who REALLY deserve it. Like the doctors, maybe get them an endorsement or two... like a shoe deal.. IDK... SKY DOC'S for the best doctor out there !!...
I've always wondered the same thing. Their constant pouting and crying about their salaries makes me laugh. I wouldn't have a problem throwing a ball around for five millions dollars a year.
They make far too much money.My nephew and a few other people i know are in iraque fighting a war for greedy politicians.He gets shoot at for the American Flag every day now for about 2 years he dont make millions.Thats a real job playing sports is recreation.Will they save you from a terrorist.They wouldnt give a normal person a second look.They think every ones beneath them.The true Champions are the men of the us military that blindly follow orders no matter how corrupt...anyone with a child or friend in the military should be digusted when you watch sports.1 million plus to play ball 2000 a month to dogde bullets in the army .Where is this countries priorities?No wonder the international community does not respect America.
Another important point justifying the salaries received by professional athletes is the fact that professional sports are an integral part of the economy. The establishment of stadiums has resulted in substantial economic benefits to many cities across America. Potential job creation and increased spending has encouraged local and state governments to subsidize the construction of facilities related to professional sporting activities. Every year, billions of dollars are generated in the economy as a result of sporting activities. From television commercials to venders, sales of sporting merchandise, restaurant workers and broadcasting rights among others, billions of dollars are generated by these professional sports and pumped annually in the economy. When Michael Jordan was playing for the Chicago Bulls, many fans came just to see him. It has been said that Jordan alone generated approximately 10 billion dollars to the U.S. economy. The logical reasoning therefore, is if Jordan contributed roughly $10 billion dollars to the economy, shouldn’t he receive at least millions of dollars in payments? These athletes do generate much more income in the economy relative to what they make.
Another important point justifying the salaries received by professional athletes is the fact that professional sports are an integral part of the economy. The establishment of stadiums has resulted in substantial economic benefits to many cities across America. Potential job creation and increased spending has encouraged local and state governments to subsidize the construction of facilities related to professional sporting activities. Every year, billions of dollars are generated in the economy as a result of sporting activities. From television commercials to venders, sales of sporting merchandise, restaurant workers and broadcasting rights among others, billions of dollars are generated by these professional sports and pumped annually in the economy. When Michael Jordan was playing for the Chicago Bulls, many fans came just to see him. It has been said that Jordan alone generated approximately 10 billion dollars to the U.S. economy. The logical reasoning therefore, is if Jordan contributed roughly $10 billion dollars to the economy, shouldn’t he receive at least millions of dollars in payments? These athletes do generate much more income in the economy relative to what they make.
No one in the United States should make more money than the President. I hated Bush, now I hate that non-american Blowbama, but they still deserve more than the whiners in professional sports. If you are the most powerful man in America,then you should make more money. Pro crybabies should be paid by the hour, with a bonus for winning.
They make way too much and the fans are suckers for rooting them on!
Athletes earn their pay...and plus an athlete has many bills to pay outside the normal bills...like to pay their agent...their lawyer...their many trainers tht help them to keep fit on a day to day basis.....and some of these athletes that make money contributes to society whether its charity games...or donating books...or starting organizations to help people.@ BOBO...people like bush who was president and didnt do shit to help other people is the reason y this crisis is happening write......dont generalize and say athletes...cal names and be specific and accurate...cuz im very sure u put side by side top ten richest athletes in the world to the richest in world and u would see tht the athlete contribute more to society......
thats why its a free country and there is no limit on how much money u can make.
It all comes down to supply and demand. How many people can play professional baseball??? Not many. Almost any able bodied person with half a mind can be an accountant, teacher, etc. I have a lot more respect for other professions but salary like in any job comes down to supply and demand. I hate my boring desk job but I'm not upst they only pay me $50k a year because there are a lot of people who could do my job. How many people could replace A Rod or Peyton Manning???!!!
hey lebron james is the best basketball player
you guys are nigers,
Ur gay
I agree with the article and a lot with what people are saying.
I think that athletes are paid way too much, but I also think that they should still be paid an adequate salary to cover their required expenses (as was mentioned: transportation, fitness, etc). I however, do not believe that they need the best of the best, such as flying private jets, having an expensive fitness trainer (I mean people can work out by themselves), etc.
Assuming an baseball athlete plays all 162 games a year, and estimating high at $1700 for each round trip ticket (allowing for first class tickets), this comes out to be $275,400. Assuming 3 night stay per game at $200 a night gives a total $97,200. Factoring in a 10% charge of miscellaneous items gives a total of $409,860 for a base salary. Giving them a $30/hr wage with about 3 hours a game is $14,580.
Therefore, estimating high, the salary of a baseball player should be $424,440 a year. This of course does not include product endorsements, which will in my opinion should only push it to about 1 million a year. Then there is always the variable performance bonus that can be granted.
If the company pays for the hotel and plane tickets, then the player should only be paid $51,840 since that accounts for the actual hours of work done at a reasonable $30/hr salary and the 10% miscellaneous expenses.
Note that this is more than a lot of people are paid, and it does not factor in the endorsements and random product selling such as clothing, mugs, bumper stickers, etc. There is also the group training that should be paid to the athletes so that's maybe another $28,800 (not sure the exact number of hours for training, but assuming 240 business days a year and 8 working hours a day, then 1/2 year = 960 hours)
This then gives an inflated total of $80,640/yr, which is pretty nice for just hitting and throwing balls + training.
Unfortunately there is no solution to this. People are willing to pay high amounts to watch the games, people are willing to spend the money to buy a sports branded item. So I guess it's our fault as the fans? But I just watch on free broadcast TV and don't really buy sports stuff so I guess it's the commercials that are really contributing to their high salaries? (And me as well if I buy the advertised item because of the commercial aired during the game)
What I do not understand is why some people are willing to spend $200 for a ticket to watch a game. $50 is already too high for me.
I have to say that athletes making way way way too much money! Its unreal and unfair. I am also curious how does a team have that much money to pay millions to each indivitual player...I think that pro athletes are not contribute anything worth to this society.
Sports exist because of healthy reason, pride of a hometowm, village, city, state teamwork...etc....but sports these days mostly about indivitual who makes the most money and way way way too much money while others like doctors, scientist, lawyers, teachers...spending years to study and own mountain of debts to have a degree to serve society needs and soldiers give up their live and die in battlefield and all these peoples doesnt make as much money as pro athletes who just go out to the arena and play what they love for 1 or 2 hours and get overpaid.
Sport commissioners are spoiling these youngsters with their money.....most pro athletes (not all) dont have a degree and live a gangster style. I think the government or sports commissioner should do something about it because they are getting so much overpaid...like double or tripple tax them based on the amount they earn, lower their salaries and increase workers who get pay per hour...etc.
In the end, without pro athletes (sports) doesnt affect much to this society (they did not contribute much to this society from the beginning anways). Infact, helping society less gamble...sports exist for healthy reason but pro athletes, commissioners formed into a legal organization for gambling reason...I think .......just my thoughs as i am always curious how did they get so much overpaid.......
i think jebron is the bes in basketball.. not kobe he weak an sorry.. d-a-j-u-?-?
way too high
and they keep askin fo mo
i like big juicey balls
I like playing basketball
pro athletes earn to much to you but what if you were making that much
Yes sports people make way too much so many professions as doctors deserve alot more but what do should we expect with live in a sick evil world
Stop going to professional games and stop watching it on t.v. and revenue will drop dramatically. Now, they do make way to much but we all would accept the money if we were in their shoes. What pisses me off is when they sign a long contract or just a contract and a year or two later they decide to holdout because they are not making enough. They decide, talking in third person, that 66 million over 6 years is not enough but they want 69 over 6. BooHoo flippin Whoo. Ken a while back said that athletes make that much money because of the bullshit no one hears about like getting up at 4:00a.m. and going to practice a PLAY A FUCKIN GAME/ practice for the game. I know for a fact that is fucking bullshit. The games do not even end until 10p.m. so NOPE don't think so. Now, I have literally got in from a mission overseas at 0100 and lets see umm I had to get up at 0400 to do it all over again. There were times I didn't even come back for 24 or more hours. I sure as HELL wasn't playing a EFFING game and driving around in a Ferrari and talking in 3rd person and talking and sounding like a fucking idiot on television interviews. Not able to form full sentences. There are a lot of kids who get lied to by these stupid agents and end up getting screwed but it is amazing how fast their attitudes change with all that money.
they are working for it
Tell me something. If our men in uniforms weren't out there putting their lives at stake, and just turned around and said the hell with you, I want $$$$$$$$ or let them kill you and your kids. How much would you me and all the rest and thier millions PAY?????? sports acting etc. lets just say make all persons working pay their fair share instead of hiding the money in a Swiss bank, we would be a better people and a have a better world. But the rich cvontrol and let us remember we are their slaves.... Just a thought. Our military men should come first....
I believe it’s not right for athletes to get paid all that money for what they do.. play sports. I mean, half of them don’t even play! They just sit on the bench, watching the rest of the team play, every game. They make more then teachers. As a matter of fact, millions more! Do they really deserve all that cash?
I’d like to bring up the bench warmers. Why should they get paid millions of dollars, making more then teachers, when they don’t even play 90% of the time? A normal bench player makes about $5 million per season. The average teacher with a masters degree and has taught for 10 years or more makes about $33.98 per hour in Oklahoma in the year of 2006. The average teacher made $38 000 per year in America, which sounds pretty good until your hear how much Lebron James makes. He makes up to $20 million per season! Like come on! That’s $10 030 000 more then what the person who teaches you all the stuff you need to know, which is more important than playing sports. Not to mention, Shaquille O’Neil and Carmelo Anthony make around $15 million a year… too much.
When you think about it, us sports fans pay for almost half of what star athletes make. Why? Well, have you ever thought about why you have to pay so much too go watch a national sport live? The biggest part of profit is from the dedication of the fans. Most of the money you pay to watch the game goes too the athletes that are on the teams. Therefore, if all of these sports fans didn’t spend as much time watching these sports, they wouldn’t make as much money as they do. So, part of all these athlete’s salaries is our fault. Maybe it's time, we fans stopped going to games until they lower the ticket prices.
Athletes make such high salaries because we let them. A star athlete is the cause of ticket sales, advertising revenue, and fan loyalty. Simply put, athletes make pay proportional to the amount of money they bring into a franchise. It doesn't matter whether or not we think it's fair. In general, America loves sports. We buy tickets, merchandise, MLB and NFL tv packages. Based on this enormous amount of revenue, athletes get their due share based on what portion of this revenue they produce.
Wow, this is one crazy topic. For one, I'm not much of a big sports fan. I agree with most other statements concerning how althetes are being overpaid despite whatever reason. I'm recently retired from the U.S. Army having used my brain to assist in decision making process on and off the battlefield, I have stood before over 5,000 soldiers to train them in preparation for foreign campaigns, and earned a Bachelors in Business Administration, and yet, still never made nearly as much as an athlete. They say that our attitudes stem from jealousy or envy? Give me a break.
If someone is so dense that they can't comprehend that worth is how essential you are in society and what you can produce, rather than how many fans crowd to witness an athlete on a field or court, you really need some serious tootering. I earned a right to "live" period. I contributed to society in a fashion that is far more significant than entertainment.
You want entertainment, what CNN and check out those soldiers and sailors who are fighting for the freedom of their country and terminating those terrorists who would have been likely potentials to add to another world crisis such as 9/11. Sports are brainwashing you people. For goodness sake, what is this world coming to?
yo! i personally think that those athletes are too full of themselves... they get lots of money so they think they're all that but their not ok sure they are talented but come on .. there is something call "SHARING" or "CHARITY" and "HELP" try it somtimes ... am not saying the world would be perfect but atleast it would solve the poverty problem that we are having
pce ppl!!!
No one deserves anything. Athletes produce a lot of revenue and you people pay their salary. Military produce some benefite but we cant see it in dollar amounts. Plus anyone can join the military, its not a specialized skill. If you want athletes to get paid less, quit going to the games and donate your money to a soldier. None of you will do it though and that perfectly describes how salaries are "deserved".
hahahahahahahahahahaa a rods garbage
sure athletes get alot of money but what do they do with it almost everyday there is an athlete that is getting caught doin something. they pay there self around them so they know they have the money to get away with it. they pretty much do what ever they want. all it will take is for one time people dont go watch w.e it is and it will make a big difference.
You guys forget who is actually paying these athletes. You are! Where do you think all the money to pay these guys comes from? People going to games or simply watching them on TV. If you think they are paid to much maybe you should stop watching the games or stop buying the athletes' signature shoes or even stop watching the games and spend some time with your honey or something(ouch). but until then maybe you should reconsider commenting on them getting paid to much
I think athletes deserve the salaries they are recieving because:
1. The physical toll they put on their bodies
2. The gross revenue of the League thier in gets billions of dollars a year
3. They need the money for the travel and the memberships to gyms, pay trainers, and live in the cities they play in
4. They get a lot of the money from endorsments
Athletes are way more talented and have skil there skill is what keeps us watching them. They deserve every penny they make.
Do not think for one minute that the owners who pay the salaries are not getting a return on their investment. Why do you think the city of Cleveland is doing all they can to keep LeBron? Because LeBron increased the overall net worth of the Caviliers franchise some $200 million dollars, and it is unknown as to the amount of money he generates for the city of Cleveland. If the athletes didn't get these extremely high salaries that income would go directly into the owners pocket. The money that the owners pay doesn't put a dent in their net worth and it actually is an investment, and like any investment, they get a good return on some, and they lose money on others.. for example, Albert Hainsworth of the Redskins who is quickly going to find himself out of the NFL and blackballed from the sport, as well he should, is going to be a loss for the owner. Hainsworth is not even trying to honor his contract (but that's another story). This is how much money a typical owner has .. When Ted Turner owned both the Braves and the Atl Hawks, along with the CNN Center & various other interest, the Braves were and still are one of the more popular, money making teams in the league primarily because TBS is seen around the country so millions of Americans watch the Braves, sometimes whether they want to or not, because their home team might be playing the Braves .. For all the money the Braves generate, per a Newsweek article, the Braves only made up 2% (TWO PERCENT) of Ted Turners net worth .. so believe me when I tell you, if an owner is paying a productive athlete 10 million per season, you can bet the owner is making 12-15 million off that particular athlete .. These guys (owners) and a couple of women didn't make their millions, and in some cases billions by being stupid .. they are the last people to throw away money ...
and for those who mention our troops needing more money and support, I agree, but we're talking apples and oranges here .. and the troops, God Bless them, but you may want to read about the Illuminati and War for Profit: http://www.squidoo.com/illuminati3
Man I wish I got paid over 20 million a year to play a game.
With all that was written in the article above I would have to say it is sound business ethnics being explained. However I don't blame the athlete for
marketing his exceptional abilities for monetary gain. I blame the distributor
who could and should control this excessive greed, which is teaching our young that gifted talent is only worth a buck.
interesting! I like this a lot!
I cant even believe anyone would think that they are paid fair for what they do. Are you kidding me? For being an athlete and being helped through college, by the college just to generate revenue for themselves? And then they go pro and earn millions every year while everyone else suffers just to pay the bills and working their butts off to service the public in some way? Anyone that actually believes that they deserve that kind of treatment because they can run fast or jump high has some serious problems. The article that we are commenting on obviously has an opinion based on awarding them their salaries as if they are doing some greater good. Bullshit, every one of them gets busted for murdering someone, killing dogs, and whatever else they do. I guess that is what happens when you give a bunch of monkeys millions of dollars.
You know what? you guys are right. That's exactly how this world is nowadays. It's cruel and it's unfair. I guess it really has never changed. Anyone can look at a lot of things and tell that there is something that just does not make sense. It's like everyone is blind and we go on like everything is o.k. 50 years ago people fought for what they believed in but now no one ever does anything. People need to stand up and say something. I have seen some of the most strangest comments on things that just are not right. People supporting things that are not right. I always wonder what is going on peoples brains. It seems like young people have been brainwashed by the media.
You know Liz, I agree with what you're saying 100%. Unfortunately, as long as we the "people" are endulging in entertainment every second of the day, those athletes, musicians, producers, and actors are getting paid more so than we as professionals. We are paying their salaries, not taxation. I'm with you, however, as I favor those who have put their lives on the line for their contries as soldiers and the Police force, and for those who make legitimate contributions in educating and fine tuning our society such as doctors, lawyers, professors, and teachers. Yet, we make the peanuts for using our brains. I'm a retired soldier of the U.S. Army and could only wish that I could be compensated for the bullets and roadside bombs that I overcame in Bahgdad with 20 million dollars.
honestly pro atheletes dont nearly make as much money as you people think.
there are about 400 players in the NBA (average salary $5 million, average career length about 5 years (http://www.time.com/time/magazine/article/0,9171,9
that is 20 million.
you look at doctor/dentist/lawyer careers.
~150k a yr for an average of 20+ year career. (med/law/dent school out at age 30, retire at 50 is not out of the question) that is about 30 million
teaching careers
~50k for averages of 20+ year careers.
that is 10 million over a lifetime.
still think pro athletes make a lot? number says different. stop treating the kobes and lebrons in pro sports as the norm. They're not. Pro Athlete make millions because their length of careers is so short.
If Pro athletes make to much why don't you just become one and have a nice easy life just like them? hmm it's not really that easy you actually have less then a 1% chance of becoming a pro athlete and it takes alot of hard work and dedication to make it. Pro athletes deserve what they make, they work just as hard, if not harder then everyone else.
Great topic.
They do have a pretty tough lifestyle. It may seem ridiculout to say that because yes they get rich playing a game, but they (particularly baseball players) are on the road 7 months of the year and train probably a lot harder than most people think. We have the perseption that they play a game (3 hours) with a pre-game pep-talk (3 min) and then they get to go to the pool for 12 hours. Nope... in fact, even a lot of pitchers are long-distance runners on the side for conditioning. Have you ever tried to run 5-10 miles/3 to 5 days a week? I have; I'm doing light marathon training right now...it freakin feels like a part-time job!
Sure... even to me it seems absurd that New York's right fielder gets paid 6,000,000 (yes 6 zeros) to catch fly balls out there... but let's be real: our real frustration is the fact that we don't make even anything close to that much.
I shouldn't have quit sports.
I would have less of a problemm with their enormous salaries if they were paid for entirely by fans buying tickets for the games and buying memorobilia, souveniers, etc. Unfortunately, everyday people end up paying the bulk of their salaries. This happens because the bulk of the revenue that pays for these salaries derives from advertising revenue. Therefore, regardless of whether I choose to be a sports fan, which I am, I have to pay increased prices for everything from soft drinks, to insurance premiums. One could argue that I don't have to purchase the brands that advertise at the games, but what about the advertisers like ComEd, should I not buy electricity? Nicor, who needs gas right? Now you could try the argument that there's an open market for these commodities, but who are they trying to kid, no matter who I buy gas or electric from, the bulk of my monthly bill will go to ComEd and Nicor in the form of 'delivery fees' and/or some other line items on my bill. I would also argue that if somehow, all of a sudden, athletes were only paid say an average of $100,000.00, still a lot of money, people would still go to games, buy tickets, memorobilia, etc. And who knows, maybe we would get to pay less for all of the products and services outlined above!! Scary!!!
I can't believe everything I just read in this comment section. I can't believe there is people actually defending how much money a pro athlete makes.
To (named way to go idiots) the person who commented on an nba player averaging 5 million a year for 5 years or 20 million total, you obviously failed 5th grade math as that is 25 million. then compared that to a dr who makes 150K for 20+ years or 10 million total and saying it was fair.. Yes, a lifetime of saving lives is only worth half as much as someone playing a game for 5 years you fucking idiot.
People should stop going to games, and buying merchandise until the prices get back in line with the rest of society. I know that won't happen, but it really needs to happen. To the people who are defending them saying their bodies will be in pain for the rest of their lives, boo fucking who, don't be a pro athlete then.
I believe a pro athlete shouldn't make more than 500K a year, period. I also believe you should have to have a bachelor degree in order to play a professional sport, why you ask? so they can support their sorry asses after their playing career (haha, shouldn't even call it a career, more like play time) is over and they join the rest of the real world.
We should not buy tickets to games and not watch their games on tv and do real things with our time. the result will be pro sports goes out of business and all those players salaries majorly drop. and we all would have more money. the fans of pro sports who either waste their time and/or money watching pro sports are nothing but suckers adding kindle to the fire of unfair salaries.
All of you people obviously have never played a sport. You don't understand the constant stress they are in and the grind they put their bodies through. If you tried it for just ONE year, i guarantee you would quit half way through. You are all just jealous you haven't made anything out of your useless lives.
Mr. Rodriguez should donate approx. 10 million dollars pere year to less fortunate orginizations, homeless, shelters, etc.....
Think about it. If every soldier got the same pay as a professional athlete, then money would be completely worthless. We choose to pay 100 bucks for a concert ticket, we choose to 600 bucks for a Yankee ticket. Where do you expect all this revenue to go? Back to the elementary school teachers? and the doctors? That's socialism. We are a capitalist country. What incentive would that give the average unskilled worker to work their hardest if they are just gunna get bailed out by the government? People need to stop basing their arguments on logic and actually use their brains. You people are morons.
Why!?!? Because without a "Kobe Bryant" (as an example) You have a bad team that doesnt win, team doesnt win no one comes to the game, no one comes to the game no one PAYS for tickets, no one pays for tickets you dont sell hot dogs, beer, popcorn,and city doesnt make tax revenues, you dont get million dollar contract to play on tv, noone WANTS to see you, noone wants to see you noone buys jerseys, noone comes to the game, buys jerseys, or hot dogs, no tv money, owner goes BANKRUPT..because of a BAD PRODUCT. No playoffs o championship, no jersey sales, playoff money or TV playoff money...simple.
I dont have a problem with what athletes make...BELIVE ME the owners would not pay you MORE than what you proportionally bring in..it is a BUSINESS RELATIONSHIP...not a JOB.
WHat i DO have a problem with is why TEACHERS do not gte paid or get held in esteem in proportion to what they bring in.
STOP wasting your anger on athletes...if they went into BUSINESS to get paid for raising your kids and influencing society they would have been POLITICIANS !! They are just guys that LIKE playing a sport that...PLAY a sport. Lets get back to being Americans with BRAINS..that KNOW what is important and what is NOT.
they are gilrs that like playing sports to. and i agree
Please i need you to give me answers to these questions, i will really appreciate it.
1.) List the items that make NBA stars worth so much in the market and explain how they would effect the market?
2.) what are the two major items that would make one NBA star worth more than another.
Thanks so much for this highly informative hub, good one.
and please do send me copy of your reply directly to my account when you click on my user name. i would appreciate that. thanks.
That's a very clear article to build understanding for the readers. Thank you..Phewww
This is a great hub and especially relevant considering the recent contracts signed by athletes like Jayson Werth and Carl Crawford. In my opinion, I think athletes do deserve to be paid a lot of money, even millions, because they make millions of people happy with what they do and sometimes that is priceless. But, there needs to be a ceiling or at least a ceiling relevant to current inflation and economic conditions.
Yes there's no doubt American Football /Baseball / Basketball players are OVER PAID. Stop watching the crap! Track and Feild and Pro Cyclist work MUCH harder than those dildos playing ball. Unfortuantely BALL sports are part of American culture. The Althetes like Lance Armstrong DESERVE their pay. They TRIAN their asses off 6-10 hours a Day and are in much better physical condition then ANY ball player. I'm not talking about easy to gain bulky muscle mass but endurance / heart - lung power / blood sweet tears. Running sprints for 10- 15 min / throwing the ball around and hitting the gym for an hour or two isn't shit by comparison. I have much more respect for people who actually WORK for what they have. Endurance athletes should be far more repected but America has things ass backwards. But yeah quite paying to watch those over paid silver poon cry babies.
My evaluation review is based on the outrageous salaries of pro athletes in comparison to the salaries of teachers. I found that professional athletes can make as much as $30 million (or more) for one year. At the same time teachers are working around the clock and grossing less than $50 thousand dollars a year. Is this wrong or right. I say it is wrong, I feel that athletes are for entertainment only and teachers hold a higher purpose by educating students of the past and the future. So the question is, who is more valuable those men and women who entertain us on television, in stadiums, arenas and field's or the men and women who educate these athletes throughout their academic career, which intern allows them to make it to the big time. Because in order to make it through high school a diploma is required, graduation from high school leads to college where most professional recruiters draft their prospects for a variety of professional sport teams. I personally know two teachers and I have seen the struggle that these low salaries have put these teachers through. Having to live paycheck to paycheck and fight to pay the bills and put food on the table. Professional Athletes may struggle financially in college in order to make it to the big time but teachers will work 40 plus years and not be able to earn any near what a professional athlete makes during one season of employment. So next times you sit down to watch a pro sport like football, baseball, hockey etc. just think about how lucky the men and women must be to earn such outstanding salaries.
Everyone has valid points. All entertainers & sports figures all get paid too much, because they can. Would you accept big $ if offered for your job or service? Most would say yes! However, in reality, teachers, doctors, scientists and the like are most underpaid and do what they do for satisfaction it gives them. Most people leave their job, not because of $, but because a lack of feeling valued. Sometimes we have to do what we don't like to do but have to do. It's like having children. If you are a parent the way parents should be, you do what you have to, not want you would like to do too often throughout their growing years. When we are entertained, we escape reality....sports, or movies, t.v. So, since you watch or purchase tickets YOU are the cause of the big salaries. By the way, the teachers union is the strongest union in the nation, so go figure. If you love what you do, you'll never work another day in you life. Now, as Dr. Laura says; 'go do the right thing'
i hate to work
they get paid entirely too much money to hit a ball around
:P i like blue squirls
The only problem with this article is that it doesn't make it clear that you are a moron if you believe that athletes are paid too much, not because your opinion is wrong, but because it is a nonlogical sentiment which reveals you fundamentally misunderstand the world. And because the article fails to do this the first comments left completely restate what the article attempts to explain as nonsensical.
Perhaps it works better to explain that athletes are entertainers, and they make an amount of money relative to the amount of money they generate from paying customers who watch them. People comprehend that when they pay $110 for a ticket to go see Barry Manilow, Barry will be getting the lionshare of that $110, with lesser amounts going to the venue, side performers, staff, agents, etc.
It works the same way with a football team, your $150 ticket goes to the players you are paying to watch. In their case they have a team owner and a player union, so the amount players get is set by negotiation at around 60% or so. Professional athletes don't get paid too much, they get paid the amount they earn based on the revenue they create.
That's how it actually works, instead of what morons seem to think. They seem to imagine that the economy is some sort of perfect Marxist system where all the money of our GDP is piled in a field somewhere and then doled out by society to people based on an arbitrary whim, and that we can simply change what we pay athletes, or teachers, or soldiers, or whatever profession you're sentimentally attached to. But because this article doesn't make that clear, it's obvious from this comment section that it reached no one.
the athelets are making more in on day than some people make in a year
To quote this guy:
"Way to go idiots 5 months ago
honestly pro atheletes dont nearly make as much money as you people think.
there are about 400 players in the NBA (average salary $5 million, average career length about 5 years (http://www.time.com/time/magazine/article/0,9171,9
that is 20 million.
you look at doctor/dentist/lawyer careers.
~150k a yr for an average of 20+ year career. (med/law/dent school out at age 30, retire at 50 is not out of the question) that is about 30 million
teaching careers
~50k for averages of 20+ year careers.
that is 10 million over a lifetime.
still think pro athletes make a lot? number says different. stop treating the kobes and lebrons in pro sports as the norm. They're not. Pro Athlete make millions because their length of careers is so short."
Are you kidding me? 150k a year for 20 years is $3million not $30 million you idiot and doctors are highly trained and highly skilled individuals that are responsible for keeping people alive! And that salary is not a lump sum its over 20 years with bills coming off each month. Yes its good wage but they work really hard for it.
And $5 million for 5 years is $25 million not $20 million.
And teachers on $50k a year for 20 years is $1 million over a career not $10 million, did you never go to school?
I like turtles
I am doing a speech on why we should not cap athlete's salaries and I have to say.. I agree. Most people are just jealous of how much they make.
How would you like it if you worked hard for your profession and people were debating if you actually deserved your pay or not? DEAL WITH IT!
There are greater issues than athelet's pay going on. I'm from Wisconsin and the assumption of "if they deserve it or not" isn't even a question. Some players abuse their money- that's no doubt... but almost all the others don't.
The Green Bay Packers are community owned and they go to our local high school and middle school to ride bikes with kids before each home game- this is motivation- these are the true players! They work as a family they aren't all about their ego's like a lot of teams get. Regardless,
I'd never want that much money because it would probobly go to my head. I'm happy where I am but i'm not going to sit here and knock on someone who worked hard for their money. GET REAL.
People need to stop being jealous. Don't be a hater- be a congradulator. They often donate more of their money.
instead of targeting athletes who WORK for their money let's think about the KARDASHIANS. they are dumb and they get paid millions for what? tell me please what they do besides advertise. But that's their job so they get paid for it. don't be a hater be a congradulator.
NUFF SAID
It's amazing how many people commenting either didn't read, or didn't understand this article. :-(
I'd just like to point out another reason for the very top salaries being so high. The mathematician Ian Stewart once looked at athletic competitions as a series of probabilistic events: a tennis player will win the point some fraction of the time.
Seen this way, the primary effect of athletic games is to amplify the differences between players.
Let's say you're an amazingly great tennis player -- when you practice against Roger Federer, you win 49.9% of the points! Someone watching you two practice would probably not be able to tell, simply by number of points won, who's the better player. Yet the probability of you winning a game against Roger is much lower than 49.9%, and of a set it's drastically lower, and of a match it's practically nil.
For athletic events which are shorter and simpler, we need to invent other ways to amplify the difference. You might commonly see a 10-1 game in baseball, but you'd never see a 10:1 difference in speed in the 100 meter dash, so we need to use millisecond timers. Or we make runners run further (like 26.2 miles!), to amplify the difference. Of course, far fewer people watch track and field than baseball -- for the TV market, it's an easier sell to show someone hitting home runs.
We've set up a system, and now we're criticizing how people optimize their behavior to do well in that system! It rewards not just skill but size and strength, and we're surprised that it's dominated by men and has rampant steroid use. It rewards a very few who are watched on TV by many, and it rewards #1 far more than #2, and we're surprised that salaries are high. (We could change the rules of baseball to lower the effects, but proposing that would be like proposing we ban apple pie and mothers.)
I find it sad that people will be ardent fans of professional sports, yet at the same time advocate that these professionals do what is not in their best interest.
i don't c y athletes get paid so much money? i just don't get it :(
what your real name Mcamp?
the simple reason of why athletes get paid so much is this. people want to see their team win. so a winning team makes more money so they want the best players. If a good player see's that team B want him as a good player will he offer more money or will team A the one he is with will offer more money. Lets translate this to more our world. Lets say you are a financial advisor your success makes your company money. well word gets around you are one of the best financial advisors out there. and so another company offers to pay you more to do the same thing that you are doing now. You may choose to take it but then again your original company may offer you more.
Ya but socitey is just woried about money when it should be woried about things like getting our troops out of afgan and iraq
I love Taco's
One solution to grossly overpaid salaries (whether it be entertainers, rock stars, CEOs or athletes) is a progressive tax system that takes 90% of the salary (including bonuses, incentives or capital gains) as it approaches a million dollars a year. Or figure out a different formula if you like. But you either live with it (some people earning tens or even hundreds of millions of dollars a year, for VERY DUBIOUS "worth") or you legislate salaries (a non-starter), or you create an extremely progressive income tax system.
You would put dollars back into the pockets of people who spend it (thus creating demand for our economy), you would dramatically reduce the debt (and ease the credit strain and "cost of capital" into the bargain - which would, above all, make it easier for companies to invest and create jobs and wealth that way), you would TOTALLY pay for a proper health care system. You would achieve all these things and more.
And who scream and holler the most about a change like this? Republican extremists like Palin, Limbaugh and all the grossly rich and overpaid people in America.
I'm seeing two types of arguments 1) If you don't like how much they make then you're just jealous, and 2) These people are the very best at what they do, some even the best of all time.
For 1, well that's it's just a stupid argument and really doesn't address anything to do with the salary. Whether or not people are jealous does not have ANYTHING to do with whether or not athletes should make what they do. A personal attack and no kind of rebuttal to any opinions that they should not make as much. Pretty much a "I don't have any real reason but screw you I'm right" kind of reply.
2) The only thing you need to realize to understand that this is a false argument is this: Every specialization from teaching to medical fields, to inventors or mechanics, pilots, scientists, engineers - they ALL have a few people who are the very tops of their field. Some of whom are the best that has ever been. Not a single one of these people make remotely in the range of salary that a top athlete makes. Just a salary of 1 million dollars is considered the very tip top of pay for any normal professions such as doctors, or any specialized field. For an athlete to make millions, or hundreds of millions, or for an athlete to merely sit on a bench and still make the pay of a doctor - is pure nonsense and a clear sign of the irrational world which we live in. If professional athletes never made over 3 million a year, would it stop being a dream job? I doubt it. CEOs, Athletes, all of them - I say put a cap on the amount anyone can make [1-5 mil] and if you make more it should go into education system and research departments. What else could be a better investment for all of our future?
OK so if those athletes along with supermodels and celebs get paid for very high amounts of money, why doesn't the culture give much money too to those scientists, doctors, teachers, alchemists, etc ???
Say you are a basketballer. And you play basket. People around you cheer up and yell. So what ? What makes the culture thing those who make you cheer up and yell deserve being paid for very high salaries ?
And oh.. just because you have sexy body and pretty face, do you deserve a lot of money more than other useful professions for posing ? We only see you as a good example of someone looking good who dresses good. So ?
If showing physical talents deserves much more money then the culture should give a lot of salaries to labors or soldiers!
No offense ya but I think Discovery channel programs or any other program that shows education and knowledge, like how to be skilled at working, how to manage funds, how to arrange and design properties, how to take care of babies, etc should deserve more attentions and much more rewards.
I think these kinds of sports plus modeling, singing, and acting things should be secondary or alternate jobs instead of primary or main jobs. Because they are just refreshing!
I have to say they are overpaid. Why? Because they don't offer any real services other than entertaining. When you weight its value in every day life, it is very low and yet they are in the top paid individuals in the world. It shows how little values we really have now as a society. Just a few thrills once in a while do not grant them so much as far as I am concerned. They often are on performance enhancing drugs, they don't know what to do with all that money and often they get in trouble. It is not the corporations that give them these huge salaries, the problem. It is us, the people, who put too much value on these athletes and pay the exorbitant prices to see them. I can tell you that I don't pay or support any professional sports since the 80s. I do believe they should get a good salary, but 20 millions a year!!!!!!??????? Please, give me a break!! No one is that Good!!!!!
i like stuffl
i got some posicles in my freezer ;)
Is there a way to stop this overpay? Do you guys have any ideas??
Stop supporting them by paying for them to play games or idolizing them by buying their stuff...that's the only way to bring their salaries back to the "real world"!
Mannn these guys are a bunch of trolls.... lol "you're just jelly" no i am not jelly sir! when it comes down to it, i don't believe that someone who is playing a game should be getting paid far more than someone who actually works. lol especially if they're cheating and taking steroids! haha you all know a lot of them do...
I see the points made in the article. Although I still believe athletes are overpaid, I am now aware that the owners are the ones who are making the most out of this.
An athlete is no different from any other entertainer, they are paid proportional to the crowd they can draw and collect revenue from.
It may not seem fair, it really isn't, but it is possible. I for one don't think they deserve or don't deserve to be paid such sums, but I now see why they are able to. If there were only a handful of doctors in the world who could perform a certain operation, they'd be worth millions too.
Have you ever in your life played a sport? When you were growing up? That's what these players did when they were kids and they enjoy it for the love of the game and for money! So, what's this about them getting too much money? Sure, there are other things we need to focus on, but, let's have a little fun, shall we?
Like you said, it's just entertainment
Natural Selection not every one has the skills of a baseball play such as Alex Rodriguez. There are tons of nurses in the workforce but not a lot of people that can hit a ball 450 feet.
First of all have you ever played a sport? In highschool? In college? Professionally? I doubt it. Do you realize how much time and work these athletes put in on and off the field to be successful. Whether it is working out in the gym, taking extra swings in the cage, fielding extra ground balls.
It is not a coincidence that players like Dustin Pedroia, Robison Cano are so good. Its because they dedicate there life and their time to work on it from day 1.
First of all have you ever played a sport? In highschool? In college? Professionally? I doubt it. Do you realize how much time and work these athletes put in on and off the field to be successful. Whether it is working out in the gym, taking extra swings in the cage, fielding extra ground balls.
I play collegiate baseball, I go to my classes and I work out every day in the gym for atleast One hour a day, and I work on my mechanics atleast 3 times a week. I put in well over 15 hours a week on baseball, And i am not even a professional athlete.
It is not a coincidence that players like Dustin Pedroia, Robison Cano are so good. Its because they dedicate there life and their time to work on it from day 1.
To your Comment that they only work for sevens months out of the year is simply not true. Do you think that they can play a season and take off 3 months of no work, no they can not. ALL of these athletes are working out and training as soon as their season ends. Just because they are not on T.V. Doesn't mean they are not working. There is more that goes on than just what you watch on T.V.
Lastly, If people really thought they were sooo overpaid, then they do not have to watch their games or go to the ball park. People Love baseball, if it was such a big problem people would find something else to do.
These athletes dedicate their life to something they love, When people say they make too much money, I feel they don't know all the facts that comes with being a professional athelete.
Athletes devote nearly every aspect of their life, from the time of being a small child, to their sport. Do teachers do this? No. Nurses? No. If you apply the same time and effort that Lebron, or Rodriguez did, from that young age, I almost guarantee you would make a comparable salary, in a different field.
all people who comment below this one are gay
Ya'll just be hatin', ya'll madddd
Although I do think athletes are overpaid, overrated primadonnas in general, I do think they deserve to get a rather hefty salary, considering what the owners make. It's penny's to them. However, some of these salaries are just ludicrous. No way anyone needs to be breaking a million dollars a year to play a sport.
Put that money back into the economy somehow and i bet life would be much better for a lot of people. You got kids spending so much time/effort on trying to be the next big thing, but the odds are stacked against you. What happens when you don't make it... you're just a washed up athlete who didn't learn to do well in other areas of life or maybe not as well as you could have. The ones who do make it, do deserve to be well compensated for it but I think after a million it's just outright insane.
Here's a novel idea... instead of sitting on your fat behind all the time watching people compete, go out and do it yourself. Just because you're not professional doesn't mean you can't play anymore after you're out of college. I just hit 30 and I'm probably as good as a professional at my sport by now, i know i'd never get taken because of my age but i don't care, i have fun and i am in great shape for 30. A lot of making it big is luck to, being in the right place, right time, having the right people around you.... I had all these factors working against me but oh well, life goes on. These people aren't that special, there are a lot more potential "a-rods" out there, just not everyone has the chance or the determination to get there. IT's not like he's some demigod that was just born with this insane ability, he def worked at it, was in the right place at the right time and took his chance. Stop worshipping these people like they are gods, but at the same time, respect what they do because they are at the very top of the foodchain in their respective field, and true, not everyone has the ability to get that far and we as a species love sports in general, so unless that changes, people are going to pay money to go see them.
do not believe any of these people are more special than the rest of us
People under estimate the amount of work it takes for men and woman to become a pro athlete in any sport, people give up socializing, school, family, money in hope that one day they may land a pro contract. There are many pro athletes who earn very little aswel.
going to school and getting an education, anyone can do that, they are the people when you were in your teens worked 3 times harder then most of you did. Be happy for them
lollllllllllllllllllllllllllllllllllllllllll
I don't hear anyone hooting and hollering about how much actors or musicians make? get off their ass guys they happen to be the very best in the world at something we all enjoy. isn't that an obvious enough reason to accept the money they get paid? i don't understand why athletes get the bulk of this argument. one-their bodies and their brains are on the line every time they take the field. and two-the avg pro athletes career is less than 4 years (no security, for something you train your whole life for.)
why are people so envious and jealous of success? are we not the same people who praise america as the place where anything can be achieved. even a long well-paid career playing a game you love to play.
p.s. i hate how this author refers to sports as something a ten year old would do. there are millions of adults in this country who love to play and watch sports for their entertainment and don't deserve to have that crap thrown at them. maybe next time you watch a movie ill call you a child for watching "playtime" with "costumes" and "props"... pst, moron.
funny
Why not get paid so much when you can do something literally MILLIONS of people LOVE to watch. Not everybody has the traits of going pro. Thats why people love to watch. If you can go pro, you deserve everything you get just for the simple fact you can do something no one else can
sports men should be capped on endosments as it diverts their mind from their carrer which creats feeling of haterde\ness among sports lovers.so endosements should minimized 2-3 so all concentration should be on making proffesional their first priority.
i need some damn money!
You all obviously don't play sports or haven't seriously played sports. I'm a high-school athlete and I put in 2.5 hours everyday in what I do, oh and also I have to maintain a 3.5 GPA and work a part time job. All for the hopes that I can get into a top college and be recruited some place respectable enough to where I can go pro. Even after putting in hours of work my chances are still slim. I believe athletes earn ever penny they make, the road there is hard and to stay there is even harder. The article says he only works 7 months a year? Well I guarantee you he's practicing atleast 5 hours everyday in that off season. It's a bit more complicated than just hitting and catching the ball. They're hitting a ball coming at on average 90 MPH. Now if you've ever seen it in person you have about a second to react to that, you don't know where it's coming, or what type of pitch it is. Not to mention sports bring tourism from all over which helps boost the economy. So all you people whinning about how much they make, shut up. You try doing what they do. That's right you can't and never will.
I think a lot of people are confused, just because the athletes work hard, and I know they do, doesn't mean that they should be making millions a year. Yes they may be talented in the sport they play, but their talent at face value is useless to society, and the world. If you want to compare two talented people, you can look at a doctor or lawyer compared to a sports star. A doctors talent has a lot of value as it can not only save lives, but bring new research creating new cures and understanding serious human issues. A lawyer can save an innocent man from death, not to mention the case loads they relieve from societies idiots. And a sports player, well, he does one thing, entertains people. Sure, entertainment is lucrative these days, but it sure ain't worth what they get paid. jealous or not, I think people have a right to be upset on this issue, especially when so many people are losing jobs and these athletes are just fine, America says it cares about its people, but it sheds no tears watching hard working families die in debt, while CEO's and entertainers bathe in money. Intrinsic value is more important than what a product can produce, but in this economic theory, production is the most important thing, and therefore an economic society like this one basis its importance of people by how much money they have or how much materials they own, rather than the work they do that may change the world. Materialism beats its drum everyday. If you ask me, they should restructure the salaries for athletes paying them normal salaries, and use the extra money they make from the fans to give to charity for real causes of the world, than I could say sports is really accomplishing something.
Everyone here has missed an important point, and that is the efficiency in which athletes (and other performers) can deliver their service to their public compared to physicians. An athlete can be watched by thousands at the arena, millions more on TV, all of which will contribute to the payment of his salary. Now take that salary and divide it up by the number of games he played per year, then divide again by the number of fans who saw him for the price of a ticket. Since most games are an hour long, that will be his hourly wage that each fan pays him (this does not include practice and travel time, etc, which would dilute it more). Depending on the sport and salary, this will produce a fairly small dollar figure, much smaller than a doctor's hourly wage. There is justice in that way. The whole problem is that a doctor can only service one person at a time while the athlete can "service" thousands or millions. In any case, in our society people are paid for performance ($$$) not their moral worth.
This is ridiculous. The world's most brilliant scientists are relative "diamonds"--and it seems to me that they usually maintain salaries within the $80,000 to $150,000 range. Someone who's really good at playing a game isn't worth tens of millions of dollars per year--this article just rationalizes the problem away. The athletes are clearly over-valued meatheads; their "valuable skill set" is being able to hit a ball with a stick or run really quickly.
Dont like them being over payed dont watch sports
I think most of you are wrong.The ones at the very top earn every little bit of what they are paid. For the most part only about .001 percent of people that get into some kind of sport actually every make it to the pros, out of them only about 9% make 7 figures or more per year.
9% is for the big ones that you and everybody else thinks of (NBA, NHL...)In the other sports people don't think about its more like .1% make over 7 figures.
Did you know that the average full time professional Dance competitor (yeah, the pros on dancing with the stars)make an average of 25K/yr? I bet you didn't realize that. Or the average professional runner makes 15k/yr which means they ALL have second jobs.
I'm a professional athlete which is why I'm writting this comment. I'm a full time professional Cyclist. I ride my bicycle for a living and I've got a full sponsorship from Felt Bicycles. News FLASH, I only make about 35,000 per year. One of my race bikes cost 10k and all of my gear round out another 10k, and that isn't including the other 5 bikes I've got in my garage. Do you know how many riders right now earn over 6 figures? Roughly 200. Over 7 you ask? I can count them on my fingers and toes.
I train 5 days a week in the off season between 3 to 5 hours a day. I've got a full time trainer who monitors my diet, heart rate, bodyfat level, calories, tests my urine. It really sucks that I only get to "pig out" on holidays. I put more miles on my bikes every year than most people put on their cars. (I average about 22,000mi/yr)
Even after all of this I absolutely love what I do, I'm a professional athlete I get to race a mountain bike for a living! How cool is this?!?!? But, its a ton of hard work and many years of dedication to knowing that I'll probably never make 7 figures a year. For those that do, I have a ton of respect for you and I believe you earn every single cent.
Flags 4 years ago
I personally think that they do make way to much money because we have soldiers out in Iraqu who are giving their lives for those athletes and they are not even making half of what those high top athletes are making!