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Taking in consideration the main leagues in the US (MLB, NBA, NFL, NHL) or football like the premier league, do you think sportsmen earn what they deserve? How much wealthy (more or less) does a regular player of a NFL team can get in comparision to the average joe with a "normal" job? I was interested about this I searched a bit on the subject there are examples of some few that got millionaires or billionaires also some examples of some that went bankrupt but i was curious if on average they are able to make enough money on their usually short careers to for example don´t have the need to work anymore mantaining an at least upper middle class quality of life.
A great many people complain that CEOs are overpaid. Somehow those same complainers don't seem to pay any attention to incomes of the professional athletes or popular actors/actresses and other performers.
They get paid that much because we watch and support them. We buy the tickets and merchandise. We watch on TV, so advertisers buy up commercial time, giving the league and teams more money, which goes to players. Sponsors pay players tons of money for endorsement deals because they know we'll buy whatever they're shilling.
They wouldn't get paid like they do if we didn't sustain it. Look at the WNBA. Their players don't make anything because no one goes to the games or watches on TV. That league would be bankrupt if it wasn't subsidized by the men's league.
Personally I don't mind seeing athletes making all that money. They have talents that <0.001% of the population have and put in a lot of work to perform at the level they do.
Taking in consideration the main leagues in the US (MLB, NBA, NFL, NHL) or football like the premier league, do you think sportsmen earn what they deserve? How much wealthy (more or less) does a regular player of a NFL team can get in comparision to the average joe with a "normal" job? I was interested about this I searched a bit on the subject there are examples of some few that got millionaires or billionaires also some examples of some that went bankrupt but i was curious if on average they are able to make enough money on their usually short careers to for example don´t have the need to work anymore mantaining an at least upper middle class quality of life.
Bit of a slippery slope to the first question. If the market is willing to pay them, they earn every dime they make. The amount of money that sluices through professional sports is enormous, and I can't imagine why they shouldn't have a place at the table. I mean, why not say the same about a singer or an actor? Or, for that matter, the CEO of a successful corporation? In other words, questions like that lead to nonsense such as the hoi polloi deciding the worth of individuals, the dictation of a maximum wage and other piffle.
And you kind of answer your first question with your last statement.
About ten years ago, a client of mine asked me to sit in on a meeting. It was with a wide receiver for a football team and his wife. He had been approached by a third-tier fast food franchise to set up his own store. The guy was nice, but his wife was really sharp and wanted to get some objective opinions before signing on the dotted line.
I thumbed through the prospectus and did some calculations and advised the guy not to do it. There was no way he'd make money on it. What's more, if he were traded, then he'd have to worry about his sub sandwich franchise hundreds or thousands of miles away.
Instead, I advised them to save every dime they made and treat his body like it were his business. Sure, do some on-camera promotions, but really hedge his bets. Because he could walk into pre-season and have a career-ending injury just like that. Or get cut. So make money while he could and bankroll it. They thanked me and left.
I wonder whatever happened to that couple. There's a cottage industry of guys who just exploit the hell out of naive young athletes. I hope they fared well.
Bit of a slippery slope to the first question. If the market is willing to pay them, they earn every dime they make. The amount of money that sluices through professional sports is enormous, and I can't imagine why they shouldn't have a place at the table. I mean, why not say the same about a singer or an actor? Or, for that matter, the CEO of a successful corporation? In other words, questions like that lead to nonsense such as the hoi polloi deciding the worth of individuals, the dictation of a maximum wage and other piffle.
And you kind of answer your first question with your last statement.
About ten years ago, a client of mine asked me to sit in on a meeting. It was with a wide receiver for a football team and his wife. He had been approached by a third-tier fast food franchise to set up his own store. The guy was nice, but his wife was really sharp and wanted to get some objective opinions before signing on the dotted line.
I thumbed through the prospectus and did some calculations and advised the guy not to do it. There was no way he'd make money on it. What's more, if he were traded, then he'd have to worry about his sub sandwich franchise hundreds or thousands of miles away.
Instead, I advised them to save every dime they made and treat his body like it were his business. Sure, do some on-camera promotions, but really hedge his bets. Because he could walk into pre-season and have a career-ending injury just like that. Or get cut. So make money while he could and bankroll it. They thanked me and left.
I wonder whatever happened to that couple. There's a cottage industry of guys who just exploit the hell out of naive young athletes. I hope they fared well.
Couldn't you use the bolded statement to describe the insanely high earning hedge fund managers?
Bit of a slippery slope to the first question. If the market is willing to pay them, they earn every dime they make. The amount of money that sluices through professional sports is enormous, and I can't imagine why they shouldn't have a place at the table. I mean, why not say the same about a singer or an actor? Or, for that matter, the CEO of a successful corporation? In other words, questions like that lead to nonsense such as the hoi polloi deciding the worth of individuals, the dictation of a maximum wage and other piffle.
Precisely. That is their market value because that's what someone is willing to pay them. It's no different than what the rest of us working stiffs deal with. I could apply for a job and demand $120 million but I won't find someone willing to pay it. If I get an offer for $30K, I would turn it down because I know my market value. Where's the problem in that?
It's no different than an artist saying "my cat walked through a can of paint and onto canvas and therefore this painting is worth $1,000". If you can find a buyer willing to pay it, then so be it. And what a good kitty you have.
If you find their salaries obscene, stop watching the games, buying the merchandise, etc. Go watch a local high school team, Division 3 college, or a minor league team. But simply because someone else has a skill I do not have, and has found someone to compensate them for that skill, does not mean they don't "deserve" their salary.
As for some athlete's (or Hollywood D-listers' or one hit wonders') inability to manage their salaries well into their later years, you know the saying about a fool and his money.
Taking in consideration the main leagues in the US (MLB, NBA, NFL, NHL) or football like the premier league, do you think sportsmen earn what they deserve? How much wealthy (more or less) does a regular player of a NFL team can get in comparision to the average joe with a "normal" job? I was interested about this I searched a bit on the subject there are examples of some few that got millionaires or billionaires also some examples of some that went bankrupt but i was curious if on average they are able to make enough money on their usually short careers to for example don´t have the need to work anymore mantaining an at least upper middle class quality of life.
I can't really answer this question without knowing what exactly you mean by "earn" and "deserve". There is the economic sense ("true" productivity vs. wages) and there is the sociological sense (does it benefit society for them to be paid as such). Many people seem to frequently forget that these are not necessarily the same in all cases due to externalities.
Lebron James is compared commensurate with what value he brings to the team in terms of skill, and also want he brings in terms of attention, increases in attendance and merchandise sales, etc.
Same thing with Mayweather and McGregor - these guys are flamboyant and get people, lots and lots of people, watching their events.
Couldn't you use the bolded statement to describe the insanely high earning hedge fund managers?
Hedge funds are high-risk investment instruments. So if someone is adroit enough at his job that he creates value for shareholders, then give me a good reason why he shouldn't.
On the other hand, if the guy isn't good at his job, he'll get bounced out by the board. Or the share price (Which, by the way, is how a lot of executives really make their money) will plummet. This simple fact seems to elude those who complain about executive compensation.
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