I thought of titling this “Money Ball”, but that was already taken. Darn!  But the subject is money, this time in reference to the spiraling salaries paid to professional athletes, and the ensuing cost to the fan.  I think everyone hears about the numbers, they are top news stories whenever any major sport has a free agency period. We become numb to the numbers, I think, as they are so astounding that most people making a normal income have no point of reference.

But first, as I like to do, let’s take a look at some history.

First question you might ask, have athlete salaries really increased all that much over the inflation rate that we all experience?  Let’s take a look using the NFL as an example:

Consumer price index: 8 fold increase from 1964 until 2022

Top NFL salary: 1000 fold increase from 1964 until 2022

Top NFL salary in 1964 was about 7.5 times the U.S. median family income

Top NFL salary in 2022 was about 666 times the U.S. median family income

Now let’s look at some  specifics:

Bart Starr, quarterback of the Green Bay Packers, was the highest paid player in the 60’s, making about $200,000 a year.

The average player made about $25,000 a year in this period.

In 2024, the highest paid player was Dak Prescott, quarterback for the Dallas Cowboys, making $60 million a year.

The average NFL salary in 2024 was 2.8 million a year. 112 times the average in 1964.  To give perspective, the most Americans, blue  collar to professional, will make between $800,000 and $3 million in a lifetime.

So yes, the inflation of players’ salaries far, far outstripped the economic inflation we all experienced.  In fact, it puts most professional athletes into the class of the super rich. This is of course, is mitigated by the fact that their careers are much shorter, they are putting their body on the line, and their career can end at any time with injury.  But even their earnings over a 2 year period is far more than most of us will earn in a lifetime.

I used the NFL as an  example, but the numbers are similar in other sports. And it is not a phenomenon of the United States. Soccer star Lionel Messi made 75 million dollars a year in 2021!

So why did this happen (and is still happening)?  A lot of reasons, but a primary reason is us, the  consumer.  Sports have become incredibly popular, and we, the consumer, are increasingly willing to pay more, on a percentage basis, to experience them, whether that is in person, on TV, mobile devices, and even with what we wear.  Take a look at a picture of fans from a game in the 60’s, vs recently, and take in the huge number of expensive jerseys being worn by the fans.  

And why have sports become so popular?  Good question, and probably too complex a subject to address here, plus I am not a specialist in group behavior.  But maybe it has something to do with needing heroes, and replacing the political and military heroes with those less open to divisiveness.  We had plenty of heroes come out of WW II….how many can you name from the Vietnam war? For most fans, sports are black and white, with little grey in between. Our home team are the heroes, the opponents are the bad guys.

But the money does not just come from the consumers, it is just too much.  A huge change from the 60’s is the value of media rights.  In 1960, televised sports were in their infancy. No ESPN, no ability to watch multiple games across the country.   Today, the combined TV networks paid the NFL about 100 billion dollars in the current media rights deal.   The owners get more, the players want their share, and the owners, because they compete with each other, up the ante.

Another aspect is the globalization of sports, and the media/technology to taken advantage of it. The consumer is no longer constrained by nationality, or the reach of a cable TV network.  The internet, steaming, social media, all are critical in expanding the fan base.   The NBA is incredibly popular in Europe, and top European soccer has gained a huge foothold in the US.

So all is good, right?  The big networks pay huge sums, and we can watch sports any time of day. The owners get richer, but they already were rich, so what do we care.   Well, what if you want to go to a game?  There is no substitute for the excitement and experience of attending a great sporting event.  Now comes the part where we, the fan and consumer pay.   Can you take your family to the ol’ ball park, sit in the sun and watch your hometown heroes play a baseball game for a reasonable sum of money?   Say a family of 4 wants to do this.  I looked up a weekend game for the local MLB team, against a “non rival” foe.  Upper rows of the upper section in the outfield (ie, pretty bad seats), tickets were $87 each.  Lower section were $160 for upper rows, $200 for lower rows behind first base.  But we are trying to be thrifty, so assume the family goes for the cheap seats.  That would be $348 for 4.  Now food: hot dogs are $8.00, small beers $14, soft drinks $6, peanuts or popcorn $6. Assume parents get beers, and the kids a couple of sodas. Total up the bill: $96 (and no seconds!).  Then there’s parking, usually between $40 and $80.  When we look at the total, it’s about $500.   Wow, hope the home team wins, and you have binoculars.

Let’s take a look at a higher end event.  I went to Ticketmaster and looked up prices for a first round NBA playoff game.  Upper section nosebleed seats behind the basket $284 each.  Lower bowl seats, about halfway up, $650 each. 

At the highest end, tickets for the 2025 super bowl ranged from $4,000 to $14,000, each.

But games still sell out, attendance is generally not in decline…so what is happening?  First, people are just willing to spend more of their discretionary income on sports, they are just a more important aspect of our lives right now, maybe because of the hero need I mentioned, or some other reason.  Also, I think there is a big shift in the demographics of people attending games.  Let’s face it, lower income fans and families just can’t go.   Not a good thing in my opinion.

But what if I’m a couch potato, and don’t go to games. I can still watch all I want on TV, right?  Not so fast. First, you probably need to buy a cable plan, and they will charge more for sports. Second, some mainstream sports are now being streamed, and many think that this will be the future.  Last year, MLS (US soccer league) games were all streamed, and a hefty surcharge was required. Network/cable might just be the next victim of technology, and go to the grave with CD’s and DVD’s.   One way or the other, the sports fan is sure to pay more.

Let’s back up and discuss one more aspect of athlete salaries and game costs. The discrepancy between men’s sports and women sports is a huge one. Actually an immense gulf.  The average salary in the NBA last year was about $12 million a year, with a league minimum of 1.16 million. The  average WNBA player earned $120,000.   This seems patently unfair, but it is driven by market economics. Womens professional basketball  and soccer leagues are relatively recent  compared to the men’s leagues.  Both have been rising in popularity.  I predict as the market for them increase, the  salaries will  too.  Whether then can keep pace with the men’s is another question we can’t answer yet.  In the meantime, they might make a great alternative for in-person attendance.

So where does this end?  Will the bubble ever burst?  Will it continue until the top athletes (and owners) are the richest people in the world and can buy countries? We are getting close to the first billion dollar contract.  Will we end up with the situation that the only people who can go to games are rich people and celebrities?  Or will it find a happy median?  My opinion is that it will continue for some time. But at some point, the inflation must slow down or it will ruin the sport. When the average person cannot attend a game, when we can’t bond with each other with a cheer or a song, our society  will have lost something very important.