1) The article “The Sports Business as a Labor Market Laboratory,” by Lawrence M. Kahn focuses on data on the rise and fall of rival sports leagues and the granting of free agency rights in professional sports and other things. I read pages seventy-five to eighty-three of the article. Overall, sports owners are a small and interconnected group. This suggests that they have the ability to band together and act as monopsonists in paying their players. A monopsony is a market condition that exists when there is one buyer. Therefore, the result of a monopsony for sports owners is that player pay is held below marginal revenue. Sports owners hold their monopsony over players because in many instances the player only has the option of negotiating with one team.
In this instance, salaries are determined by individual team player bargaining in which marginal revenue product, and outside options available to teams and players, will affect the outcome. Baseball is the oldest major league sport in the United States beginning with the birth of the national league in 1876. When the reserve clause was passed in 1879, owners gained even more monopsony power, and salaries dropped. The reserve clause stated that players were bound to the team that originally acquired the rights to contract with them. The reserve clause caused owners to have additional monopsony power over players, therefore player salary dropped.
The Term Paper on Endorsement Deals Players Sports Million
One of the biggest problems I have with our society today is in sports. Don't get me wrong, I love sports. I love to watch the competition and seeing these men doing seemingly superhuman feats. The problem I have with sports is the over-commercialization and over-hyping of athletes by their agents, and themselves. I think that it is absolutely sick how so many athletes are getting paid so much for ...
However, salaries began to rise throughout the years and this may have been because of the growing popularity of baseball. The huge success of the American League brought with it a dramatic rise in player salaries, beginning in the 1900. The early experiences of Major League Baseball provide some compelling evidence for the potential impact of monopsony in the labor market. Baseball had no competition in their labor markets until the advent of free agency in 1976.
Overall this article emphasizes the fact that during the 1980’s there appeared to be a widespread monopsonistic exploitation in baseball. Also being eligible for salary arbitration increases players salaries by about 30-45 percent. 2)After reading and commenting on the article, I think that the current Yankee baseball player at 3rd base, known affectionately to Yankee fans as A Rod, is currently overpaid. A-rod currently makes 30 million a year. It is crazy to think that a baseball player is paid more than doctors, teachers and people that actually contribute something to the world other than by playing a sport. The main reason Arod is overpaid is because of his popularity and market value. People pay for their tickets to see Yankee game to see Arod, as well as Derek Jeter. Baseball creates revenue in our economy.
3) Derek Jeter from the Yankees makes 15 million a year and is currently being overpaid as team captain and shortstop, especially because he is close to retirement. The main reason that he is getting paid so much at this time is because of his overall popularity by fans. So many factors go into deciding a player’s salary, and since Jeter is not in his prime, as Arod is, he is not paid as much. Age, skill level, and overall performance are major factors. 4) As for Johan Santana, I would say that he is underpaid because he is a pitcher and they do not get paid as much as other positions. There is not as much of a demand to see Mets game then Yankees games, so unfortunately players do not get paid as well as the Yankees players.
The Term Paper on Major League Players Baseball Steroids
Drugs, Cheating, and the Purity of America's Pastime Most children who have grown up in an American household have at one point in their lives looked up to sports figures as heroes. Whether it was your grandfather telling his stories of watching Babe Ruth become a legend, your father's stories of Mickey Mantle and the legendary Yankee teams of the 1950's and 1960's, or your own memory of Mark ...
