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social inequality and sport
modern day inequality in sport
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When Sports were just Games
I grew up in front of the T.V. watching bone-crunching hits and massive home runs in old Cleveland Municipal Stadium. I saw the last game the Browns played there and I started bawling like a blubbering idiot when they left the field. Back then sports were much more simple. The games were played for fun. There were no high-school kids bringing down the quality of NBA games, There weren’t any greedy me-first 19 year olds trying to sue their way into the NFL. Nor were there any teams spending 190 million dollars to buy a World Series like the Yankees. But when the 1995 NFL season ended I was finally introduced to the most horrid part of sports... economics.
Economics ruined my favorite game and economics had taken away my favorite team. The Browns weren’t just my team, they were Cleveland’s team. They were taken from us because Art Modell couldn’t force the taxpayers to build him a stadium. He had enough money to help Cleveland build a football stadium we could be proud of, but he’d rather make money. Never mind the rich tradition of football we have in Cleveland. Never mind the fact that we were a playoff team the year before. The new stadium was going to cost him money. That’s when I realized that allegiances and loyalty don’t matter to owners or players. The only thing that matters to guys like Modell is the almighty dollar.
Football is not the only sports that has been ruined by recent economic changes. Baseball has had its own struggles with economics. It starts with the large gaps between large and small market teams. While some small market teams like the Florida Marlins, Oakland A’s and the Kansas City Royals have been able to perform well, most like the Devil Rays and Pirates stink. The most telling statistic that shows this gap is that the Yankees have a 190 million dollar payroll. That is a full 40 million above the team in second. The team with the lowest payroll is the Tampa Bay Devil Rays at 20 million dollars. That is a full 5.2 million dollars less than Alex Rodriguez! One player makes more than 25 players! It is also $170 million dollars lower than the Yankees. So what does baseball’s Commissioner, Bud Selig, do about this problem? He doesn’t propose some sort of salary cap like the NFL, he says that the MLB needs contraction.
For the last 30 years, the New York Yankees have been a dominant force in Major League Baseball. Other teams do not make as much money as the New York Yankees therefore they have less capital to spend on big name players. In 1994, the Major Leagues put the luxury tax into place. The idea was to tax a club’s payroll if the total payroll exceeded a certain limit. However, the Yankees seem to exceed this limit every year. The Yankees are a notable team not only for their impressive history on the field, but also for their financial situation. The Yankees owner spends more on player salaries than any other franchise in baseball. “As of 2004, the team payroll is more than $182 million, which is $51 million more than the second-highest team, the Boston Red Sox, and more than the six lowest-payroll teams combined” (Wikipedia Encyclopedia”). The millions of people who are associated with baseball in this country, many of whom had only a vague idea of what was happening, are now asking themselves whether or not the game is being played fairly. Even though teams like the New York Yankees are able to assemble top-notch teams by ignoring the spending limit, a salary cap is necessary to maintain the equal competitive nature of major leag...
Under the protection of Major League Baseball’s (“MLB”) longtime antitrust exemption, Minor League Baseball (“MiLB”) has continuously redefined and reshaped itself according to Baseball’s overall needs. But while MLB salaries have increased dramatically since the MLB reserve clause was broken in 1975, the salaries of minor league players have not followed suit.
A salary cap gives all the teams an equal chance to sign players. It also keeps teams with a lot of money not able to acquire every all-star they want , or any player who is a free agent. Some Major League Baseball teams like the Anahiem Angels and the Atlanta Braves are owned by very wealthy people and companies. The Anaheim Angels are owned by Disney.(Worisnop, 128) So with no surprise the Angels can produce a team which can be very competitive, and have several all-star players. Just recently they exercised this advantage by signing Mo Vaughn for ninety million dollars over seven years.(Antonen, 2) There were at least four other teams that wanted to sign this all-star, but the Angels easily had the money, and outbid everyone who wanted to sign him. If there was a salary cap in Major League Baseball then the Angels would have thought twice about giving that much money to one player. With the its roster for one year. So giving one player 12.8 million dollars for one year does not really make sense if the salary cap is fifty million dollars a year. That would leave only 37.2 million dollars for the twenty-four other players, which equals each player getting on average a little less than one and a half million dollars a year.
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 for 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 of a team is the closest they come to exiting the market. Through
Baseball remains today one of America’s most popular sports, and furthermore, baseball is one of America’s most successful forms of entertainment. As a result, Baseball is an economic being of its own. However, the sustainability of any professional sport organization depends directly on its economic capabilities. For example, in Baseball, all revenue is a product of the fans reaction to ticket prices, advertisements, television contracts, etc. During the devastating Great Depression in 1929, the fans of baseball experienced fiscal suffering. The appeal of baseball declined as more and more people were trying to make enough money to live. There was a significant drop in attention, attendance, and enjoyment. Although baseball’s vitality might have seemed threatened by the overwhelming Great Depression, the baseball community modernized their sport by implementing new changes that resulted in the game’s survival.
The 1994-95 baseball strike was the fourth strike in 22 years and has been known as the worst strike in sports history. The major impact was approximately 948 games canceled along with the World Series resulting in millions of dollars lost. Team owners proposed a salary cap agreement to the players due to difficult financial situations the league was experiencing. The owners said that teams needed to share broadcasting revenues to make it equal amongst the teams to prevent market clubs from falling. This meant that smaller teams would not lose their bigger players to teams that c...
Some of the most prolific franchises in sports, like the Oakland Raiders and Baltimore Colts of the National Football League, have moved to other cities breaking off their loyalty to the hometown fans. More important than the actual moves are the more frequent threatened moves. When teams “play the field” and explore the option of playing in other cities they are able to lure interested cities into giving them just about any royalty they want. New stadiums are only the beginning. The willingness to threaten departure has secured for teams a variety of land deals, lower taxes, more revenues from parking and concessions, control of stadium operations, guaranteed ticket sales, renovation of stadiums with luxury seating, control over neighborhoods and transportation systems, and that’s only the beginning of the list.
In 1970, a hotdog costs fifty cents, a pop costs one dollar, a ticket to a NFL game costs fifteen dollars and the average football player made between nine and ten thousand dollars. Jump ahead almost 40 years and a hotdog that cost 25 cents now costs on average five dollars and fifty cents, a pop costs six dollars, a ticket to an NFL game costs 100 dollars and the average player gets paid over two million dollars! Times have changed. Because of all of those price changes, and insignificantly the salary of players, in 1994 the National Football League introduced the first salary cap that allowed owners to spend a certain amount of money on players. The Players Union and the National Football League did this because for one, they were tired of players getting thrown from club to club just being a price and two to make things more equal between the teams. Today, money and fame have made players and owners very greedy and cocky people. Players ask for negotiations when they are making well over a million dollars a year and there are people in the United States that are homeless? That it the biggest reason that the salary cap needs to stay in effect. If the salary cap goes out the window, just like it did this past season, a sports fan can kiss NFL goodbye in ten years from now because there will not be enough money to pay all of the players. There should be a salary cap in the National Football League because it allows organizations to be equal and have a better chance of competing with each other and it may put players in their shoes so they know they can’t have everything they want.
... has mirrored that in the MLB, another professional sports league without a salary cap. The continuation of a revenue sharing system makes the growth of the NFL’s market capitalization less than that of other salary cap free leagues like the MLB because it reduces the ability to capitalize on lucrative TV deals. Moreover, the reduction in product quality (a result of the shift in competitive balance) slows the growth of the league’s market capitalization compared to the rate at which it was growing before the court ruling. All in all, this court ruling has been bad for the NFL because its abolition of the salary cap—but not revenue—sharing, has generated a worse product then would be produced if there was no ruling, which pays players less than it would have if there was no ruling, and that makes teams less valuable than they would have been if there was no ruling.
If there’s one thing we dread in the summer more than the heat, it’s the afflicting sentiment that surrounds oneself when one is inhibited from experiencing the thrills of football for six long and gruesome months. National Collegiate Athletic Association (NCAA) football is a part of many Americans’ Saturdays, but to fewer does it mean their lives. Recently coming under debate, many sporting fans and college athletes believe that players should be paid more than just tuition, room, board, and books. Two articles on this issue that bring up valid points worth discussing are Paul Marx’ “Athlete’s New Day” and Warren Hartenstine’s “College Athletes Should Not Be Paid.” From these articles I have found on the basis of logical,
Abstract: The Stadium construction boom continues, and taxpayers are being forced to pay for new high tech stadiums they don’t want. These new stadiums create only part-time jobs. Stadiums bring money in exclusively for professional leagues and not the communities. The teams are turning public money into private profit. Professional leagues are becoming extremely wealthy at the taxpayers expense. The publicly-funded stadium obsession must be put to a stop before athletes and coaches become even greedier. New stadiums being built hurt public schools, and send a message to children that leisure activities are more important than basic education. Public money needs to be used to for more important services that would benefit the local economy. Stadiums do not help the economy or save struggling towns. There are no net benefits from single purpose stadiums, and therefore the stadium obsessions must be put to a stop.
Sports transformed into a business where profit was the main concern. “As the pecuniary returns of the game increased, the value of the individual player was enhanced: the strength or weakness of one position made a difference in thousands in receipts, and this set the astute managerial mind at work” (Ward 315). This pertains to baseball, football, basketball and any other sport today. The more money a person could make off the game, the more significant the players became. The players were the ones making the money for the owners or the gamblers, and so many of these people no longer saw the person in the player, only the prowess in the player. The players soon began to be thought of as property and were often coerced into giving their permission to be traded to another club. “[T]he buying club bought not only the player’s services for the unexpired term of the contract, but the right to reserve or sell him again” ( Ward 315). Clubs claimed that this right to the player’s prowess was necessary to conserve the game and so many clubs abused this idea and ignored getting the player’s
The controversy of athletes being overpaid dates back to 1922, when well-known baseball player George “Babe” Ruth received $50,000 within the first year of his career. Ruth’s extensive wealth was bolstered by dozens of endorsements (Saperecom). As it is shown in figure 1, in the Fortunate 50 Tiger Woods takes the number one spot for highest paid athlete. Tiger’s salary for 2011 is $2,294,116 and like Babe Ruth, his endorsements exceed his salary earning $60,000,000 making his total $62,294,116 (Freedman). It’s crazy to think that 89 years ago professional athletes scarcely made more than the average person today. This is of course not counting the inflation that has occurred since the years which Babe Ruth played baseball.
The National Football League is made up of 32 teams that were once founded in 1920 by a group of people who helped form the league. In the beginning the league wasn’t really structured to what it is now. Teams will just play and no playoff games, seeding’s, or the game itself matter because not only was the game was overshadow by America’s past time baseball, but it was difficult because the college game was established as well. Owning a team was extremely hard because owner’s will spent large amounts of cash and participate in bidding wars for players. Fast-forward to today’s day and age it is safe to say the NFL may be the most brutal and exciting game to play. Rule’s and norms are intact for teams to do things more ethical. Money is what really drives this business and of course constant advertisement to promote its brand. With some of that revenue, the NFL has opened a program called NFL: Play 60. The purpose of this program is to encourage kids to be physically active for 60 minutes in a day to reduce America’s child obesity. The NFL has been successful because in 2010 the first lady Michelle Obama announced it would be teaming up with NFL PLAY 60 as a health imitative for children. This was a great move for the brand because The First Lady’s office and...
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.