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revenue product allows the owner to create a profit because the owner expects the athlete to produce more in revenue than his salary costs. In 2001, the average team produced $52.54 million more in revenue than the total team payroll. Therefore, the owner's revenue after paying the salaries totals far more than any single player. The salary of the player must be justified if the owner willingly pays the player with the goal of making a profit.

Free agent signings rely on expectations, hurting the players' chance of making as much money as they are truly worth. The majority of free agents sign before the season begins; therefore, the owner does not know the marginal revenue product of a single player until a long time after the signing of the actual contract (Depken 17). Due to the timing of free agent negotiations, the built-in risk of guessing a player's worth pushes the salary further below the upper limit owners are willing to pay. Also, players may try harder to create more team revenue to convince owners to pay more during future contract negotiations (17). Therefore, during his current contract, he will be worth more than expected, causing him to be undervalued. The free market and the variability of the owner's willingness motivates both the owner and the player in separate ways, both leading to the greater probability of underpaying the athlete.
Major league baseball players' salaries are defensible due to the increase in revenue generated by the athletes, the unjust contract structure, and the compliance of the market to pay. While most believe baseball players must be overpaid because of the number of digits in the salary, this idea fails to put the salary in the context of the situation. Athletes are in a business that saw teams total over three and a half billion dollars in revenue (MLB Updated). If the players did not take home a substantial portion of the earnings, then the owners would pocket even more money. Also, younger players' salaries are constricted by the regulations of contracts, leading to salaries far below the marginal revenue product for most of them. Finally, free markets run on the willingness of members to spend. Fans spend money on high-priced tickets because they want to be entertained and watch a winning club. Likewise, owners gladly pay for the players because it is less than the revenue the individual produces for them. The only action capable of lowering the salaries of players would be if the fans refused to attend games

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