Posts Tagged ‘#Economics’

NFL $alaries: Are they too much?

Wednesday, November 20th, 2013

According to an article by William L. Anderson, high salaries of professional football players may be a sign of economic prosperity and rebound, not foolish spending on “poor role models.” The number of Americans attending professional athletic events was increasing as of the year 2000, but the athletes were often criticized for their high pay and off-field behavior. His colleagues were concerned that “we should not be paying great sums of money to people who are not proper role models for our children.” As teachers who earn a much lower salary, this was a valid concern. Anderson’s colleagues suggested that Americans do not value education.

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http://www.fee.org/the_freeman/detail/in-praise-of-athletes-high-salaries#ixzz2lDKdS8qJ

However, Anderson mentioned that salary increase may mean that more citizens have the financial ability to attend games, purchase team merchandise, and enjoy the sport in other ways. One of his examples used a teacher as the subject: If the teacher is paying less for rent, gasoline, food costs, etc., he or she will have more to spend on leisure activities- i.e., attending an NFL game. He suggests that this is a sign of economic prosperity.

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Therefore, one can hypothesize that player salaries may have a positive impact on the economy AND show a reflection of the improving economic conditions. This relates to the chapter in many ways if the athlete is looked upon as a “product.” Economic interactions occur when fans buy appropriately priced tickets. Market equilibrium exists stadiums sell (mostly) all of the tickets. The price of tickets can be categorized as a market shortage if the tickets sell out (priced too low) and many fans are left unhappy. Scarcity determines football salaries: If there were a million quarterbacks that were all amazing, there would be an overabundance of badass quarterbacks and no one would be worth very much. However, there are very few that are outstanding. Thus, they are paid more and are worth more.