Sport and The Economy

In my American Sport in 21st Century class on March 19, 2015 we dicusscussed the topic of Sport and economy. Money is the foundation of all sports at all levels. This leads to a large emergance in commercial sports. The concept of supply and demand is important to making a profit for organizations and having fans pay anthying to see their favorite teams or players. These fans useually have time, money, and media connections to get to these games or buy any of the teams merchandice. To make money, owners or organizations use the revue strem, which is the building block representing cash a company generates from each customer sergent.

Definitions related to the Revenue Stream

• Gate revenue - primary ticket evenue for live events (variable/dynamic)

• Media Rights - fees spent by broadcast companies to show sporting events 

• Sponsorship - fee paid to have a brand associated with a team, league, faci,ity, or event 

• Merchandising - sale of licensed products with team and league logos

Andy Messersmith and Dave McNally

Economically in sport

In sports athletes are able to make money in different way which can be by contracts, sponserships, endorsements, and appearance fees. Restrictive labor practices kept salaries down until the last two decades of the 20th century. For most of 1900s sports had the reserve system. Each club had the right to negotiate with players whose services were reserved for that club and the salaries were determined by owners keeping salaries low for athletes. Salaries for players did not increase until free agency was introduced in 1976 by Andy Messersmith and Dave McNally. Free agency did not start for basketball until 1976 and football in 1993. This is when salary took off for athletes because now they can negotitate how much money they can have. To counter this leagues have put Salary cap restrictions so there is a max and minimum salary. Caps maintain balance and limit teams can spend. MLB is the only league to not have a Salary Cap limit.

MLB first basemen Pablo Scandoval Signing a 100 million dollar contract with Boston Red Sox

SFGate Journal, the article: Pablo Scandoval reaches agreement with Red Sox, by Henry Schulmann, dicusses how Former Giants MLB 1st basemen Pablo Scandoval signed a contract with Boston Red Sox. Pablo Scandoval agreed to a five - year contract worth 100 million dollars. It was reported that Pablo's heart was set in San Francisco but, this was false. The Giants offered him first a 40 million dollar deal. Scandoval was insulted by the offer and accpeted the better deal and bigger challenge in Boston. Scandoval Contract

Former Lions Defensive Tackle Ndamukong Suh signs 6 years 114 million dollar contract with Miami Dolphins

The Sports Business Journal, the article: Free Agencies Signings see rise in Guarenteed dollars, relaesed April 13, 2015 by Liz Mullen, dicusses how fewer players signed the first two weeks in NFL free aganecy this year compared with 2014. The difference is that the players in 2015 accounted for more guaranteed dollars than players in 2014 in the same period of time. NFL Free Agency