"Money makes the world go 'round." Sports could not exist without the presence of money. You have high paid athletes asking for multi-million dollar contacts, while at the same time you have doctors not even making close to that amount. There are corporations buying out sports teams, buying stadiums, and buying everything that has to do with sports. Someone may ask why they do this. Sports are one of the most profitable industries in the world. Everyone wants to get their hand on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports has drastically changed over the last ten years. In the United States, we spend about 13% of all money on sports and entertainment. Sports has obviously done its job; entertained and drained money out of our pockets.
A young boy goes up to his mother and says, "Mommy! I want to be a baseball player!" If this was said in 1930, the boy's mother probably would have told the boy, "That's not future for you! You need to get a real job and make good money." If this was said in 1999, the boy's mother probably would have said, "Let's go to the store and buy you a baseball glove so you can start to practice." It is visible to every sports fan that in the past few decades, sports has undergone a whole new renovation. It isn't just an activity that is played for fun. It is a business in which owner and players attempt to coincide. It is a business where TV controls fan interest. It is also a business that affects many people's lives, both monetary and living aspects. There are many aspects that are involved with the economics of sport. Each one having unique qualities that adds to the greatest source of entertainment.
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affect our lives on a daily basis, whether it is on a business level or a personal level.
Economic Theory Labor market theory is one of the most integral economic theories needed to dissect the inefficiencies in professional sports. Looking first at the type of market these leagues function in, one can see that they do not necessarily meet all the criteria that a competitive market requires. The big four sports leagues in the US have a set number of teams, which creates barriers to entry. Only when an expansion is agreed upon by the league, such as NHL has done for the upcoming season, are teams allowed to enter, and even then, it is limited to a maximum of a few teams in recent history. Additionally, the league makes it virtually impossible to exit, as selling a team is the closest they come to exiting the market.
The focus of professional sports has evolved from one of teamwork and camaraderie to one of avarice and greed. The specific problems in recent years that have stemmed off this overwhelming greed include exorbitant salaries, lockouts (or work stoppages) in professional sports, and the growing disparity among team payrolls. Most recognize these issues as major problems; however, others overlook the greed and see validity in the financial aspect of today's sports world. They argue that professional sports are thriving and should not be modified.
When looking into the history of our culture, there are many subtopics that fall under the word, “history.” Topics such as arts and literature, food, and media fall into place. Among these topics reside sports. Since the beginning of time, sports have persisted as an activity intertwined with the daily life of people. Whether it is a pick-up game of football in the backyard, or catching an evening game at the local stadium, sports have become the national pastime. According to Marcus Jansen of the Sign Post, more specifically, baseball is America’s national pastime, competing with other sports (Jansen 1). Providing the entertainment that Americans pay top dollar for, live the role models, superstars, and celebrities that put on a jersey as their job. As said in an article by Lucas Reilly, Americans spend close to $25.4 billion dollars on professional sports (Reilly 4). The people that many children want to be when they grow up are not the firefighters or astronauts told about in bed time stories. These dream jobs or fantasies have become swinging a bat or tossing a football in front of millions of screaming fans. When asked why so many dream of having such job, the majority will respond with a salary related answer. In today’s day and age, the average athlete is paid more than our own president. The cold hard facts show that in professional sports, the circulation of money is endless. Certain teams in professional baseball and football are worth over millions of dollars. Consequently, the teams who are worth more are able to spend more. The issue that arises with this philosophy is virtually how much more? League managers, team owners and other sports officials have sought out a solution to the surfacing problem. Is it fair to let...
Sports bring friends, family and our country together more so than political debates or even church on Sunday. Whether it be football, basketball, baseball or everything in between everyone has their favorite team that they cheer for regardless if they are the shits or number one. Americans will have gatherings of their friends every week of the season to watch games and “support” their teams from hundreds of miles away. Sports have an enormous impact on our society in every way shape and form, whether it is kids pretending to be their favorite super star while playing in the yard or it is co-workers participating in fantasy sports or making March Madness brackets, but which is the most entertaining, is it the professionals that are paid millions of dollars to play or college kids struggling to get by while trying to earn an education?
You see sports everywhere, on your TV and even your local park. The value of sports in the average American is astronomical, sports is a major priority in people’s life. Sports teaches young kids how to be successful (and not successful) at life. There is so much that goes into sports that people who never have played will never understand. With each sport there is specific skill that one must master to be good, and with that takes hours and hours of hard work. You can talk about a certain individual’s skill and capabilities that make him great, but the real value of sports lies within a person. Sports creates determination and a competiveness that can be used in other areas of life, not just sports. There are millions of kids who attempt to become professional athletes but as the level of competition increases the number of athletes decreases, very few of them ever becoming a professional athlete but they are able to take what they have learned from sports into different professions in life. When a kid spends hours in the backyard perfecting his swing it can translate to the kid spending hours of hard work in his job. Companies and business like to hire ex-athletes because they already know what kind of person they are, hardworking and
The two revenue sports in college athletics are men's basketball, and football. These teams make millions of dollars, while the individual athlete receives no compensation for their efforts. They are controlled by a governing body (NCAA), which tells them when they work, and when they can't work (Barra). The teams are lead into battle by their coaches, their leaders. These coaches, leaders, partake in an annual payout in upwards of two million dollars, plus endorsement deals. Why then, in a country that...
Where does all of this money come from to pay these superstar athletes? It comes from the fans. The same fans that cry when their team loses, celebrates when they win and pay six dollars for a beer and seven dollars for a deluxe hot dog at their team’s game. Ticket prices continue to go up every year. How fair is it for the fans to pay at least $100 to go see a game and watch their favorite player jog out a ground ball or not play their hardest, or a player misses a game because they are “sick or injured.” If a hard working person missed a couple days a month because they were sick or hurt, they would be fired without a doubt. In the case of athletes, they go on a two week paid vacation, otherwise known as the 15-day disabled list.
athletes life, there is nothing they would want to do more than play their sport,
Abstract: Society is affected every day by many different kinds of sports. These sports often govern society's way of life. People all over the nation turn their TVs to sporting events, such as golf, during the weekends. Scott Stossel states that "more than six million Americans enjoy watching golf on the weekends." Parents use sports as a teaching tool for their children. Kids learn teamwork and discipline from team sports programs and sports have also helped many students with their grades. Kids who want to compete in school sports are taught to keep their grades up or they won't be able to play, but the greedy coaches and schools often look around grades to keep their "star athletes" in the games. Adults have been affected by sports in their bank accounts. Tax increases for funding a new stadium, golf course and even school programs have hurt the middle class Americans. Sports have taken control of small communities and soon will take control of society
Every major sport is a competition of individuals to prove which of whom is the best suited for the time and occasion of the event. Only the ones the major leagues themselves, such as the National Basketball League (NBA); National Football League (NFL); Major League Baseball (MLB); and so on, deem worthy of participating inside their organization may be put in the limelight of awaiting fans and endorsement dealers. Those that are
It is a delicate and confusing situation. If the fans will pay for everything from the hats to the T-shirts, to the tickets to the hot dogs, the teams will generate more money. However, if that happens, come contract time athletes will demand for more money. If the athlete demands more money, the cost of tickets and memorabilia will go up.
While in class, I didn’t quite agree with the idea that commercialization could completely corrupt sport with a more attuned understanding of the Corruption Thesis; I now understand how it could and where many critics of sports commercialization are coming
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
Due to the greediness of sports figures, professional athletes are not punished in the same manner as other professionals are. It is like they are in a completely different group that uses an entirely different set of morals. Team owners care more about making their money that they do about setting a good example for young kids and making professional sports fun again rather than a business. Three good examples of this greediness are Roberto Alomar, Warren Sapp, and Dennis Rodman. Team owners and their respective leagues need to do something to turn this situation around before they have murderers and rapists playing sports for millions of dollars a year.
The commercialization of sports is illustrated by the amount of money that is involved in sport. Stakeholders in the sector are using lots of money to improve their performances with an objective of making profit. Sport has changed its form and dimension and longer only a source of entertainment, but a...