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In recent history the salaries of professional athletes have soared and it seems like this trend will continue indefinitely. So why are these athletes being given so much money to simply play a game? There are many reasons. One could argue that it is because of the potential for career ending injuries or simply the short period for which these people can actually compete at the professional level. Others blame it on greedy agents, or team owners trying to buy championships. These could all be valid reasons that contribute to the cause, but there is one reason that stands out above all. Sport, at least at the professional level, is a business.
In the business world the only thing that counts is the bottom line. There are two types of businesses; those that make no money and eventually just fade away, and those that are successful and continue to grow indefinitely. Those in the latter group all have one thing in common. They all understand the simple concept of supply and demand. Supply and demand is what drives the business community. A business must recognize a demand for something, whether it be a product, a service or a skill, and find a way to offer it to the general public, obviously in return for a fee. Sport, through the media, has been able to meet the astounding demand for entertainment. Professional leagues provide quality entertainment for television networks at a price, who then pass it on to the general public, also for a price. The demand for and opportunity to view these sporting events has risen exponentially over the last half of a century. Sport, being a successful business, has recognized that their is an increased demand so they can charge more for their product. So with all this extra money coming into the leagues through television programming packages as well as event tickets and merchandise, who should be getting all of this money?
Many people blame the rising cost of tickets to sports event on the rising salary of their favorite stars, when in fact it is the exact opposite. It only makes sense for the owners and managers, who are making billions off of theses stars, to keep them happy by offering more money. If the stars are happy they play better, which keeps the fans buying tickets, which puts money in the owners pockets. That is the aim of any business, so as a business, sport will continue use the methods that have worked in the past. The rising salaries are directly related to our rising demand for talented athletes to entertain
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In recent history the salaries of professional athletes have soared and it seems like this trend will continue indefinitely.
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Assessing the salaries of today's sports stars
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