Sport salaries- Are they too much?

In February 2008, it was reported that Alexander Ovechkin signed the National Hockey League’s first nine-figure deal in January 2008. That’s right, Ovechkin got himself a 13-year, $124 million contract to play for the Washington Capitals. Sure he leads the Capitals and NHL as of this season with 112 points, 65 goals, 22 power-play goals, 11 game-winning goals and 441 shots, according to his stats on Washington’s Web site, but what is a 21-year-old going to do with $124 million?

Contracts like these are being signed across most major professional sports. These athletes do have a talent, that is why they are in the “big leagues,” but the amount of money that these contracts are reaching is getting ridiculous. Salaries are based mostly on the talent and skill levels of these athletes, but I am beginning to wonder if that is all they need in order to receive these sky-high paychecks.

“Salary levels are set based upon supply of, and demand for, talent,” said David Carter, University of Southern California expert executive director of the USC sports business group and principal of the Sports Business Group. “Provided team owners believe they can generate incremental revenue greater than the costs incurred as part of the player contract, they will be willing to pay the price.”

Fans look forward to each season’s sport, and there are certain expectations that they have. Everyone wants to see exciting games full of home runs, slam dunks, last minute goals and touchdowns to win the game. These high-paid, talented athletes are the ones to make it happen, which could be a reason as to why their salaries are high: They are wanted, and more importantly, needed to enhance their sports. Teams pay high salaries to their athletes because they expect to generate money through getting more fans to come to games and to buy merchandise.

Taking a look at Major League Baseball, this is true as many of these athletes are paid very high to compete and entertain. A perfect example is the New York Yankees. Third baseman Alex Rodriguez leads the team in salaries with a whopping $27, 708, 525. The Yankees have an all-star line up complete with all-star salaries. Yet, Yankees’ games are a hot ticket during baseball season, even selling out stadiums on the West Coast by fans, who just want to catch a game with these highly talented athletes.

Carter said owners pay athletes the amount depending on relative to what they think they will see they will be getting in return.

“This return can come from increased ticket sales, additional corporate sponsorships, improved TV ratings, or elsewhere,” he said.

Athletes do have to uphold their contracts and stipulations of behavior on and off the field, but it can vary among sports, Carter said.

“In a sport like baseball, where most of the salaries are guaranteed, the athlete merely has to avoid breaking team or league rules tied to gambling, drug use, etc. So -- generally -- even if they get cut, they receive the money,” Carter said. “In other sports, such as the NFL, players actually have to make the team in order to get paid because their contracts are not guaranteed. Of course, the same types of rules and regulations relating to player behavior on and off the field apply.”

It doesn’t seem like these outrageous salaries will be decreasing anytime soon either.

“As long as money continues to flow into sports, you can bet athletes will get their share of it so, yes, salaries should continue to climb,” Carter said. “With emerging revenue streams from international markets and technology, this is very likely to be the case.”

Professional athletes are paid to entertain their fans. However, the amount they are paid can sometimes be a little ridiculous when you think of what they are doing.

Yes, they have to play a certain number of games in hopes of taking their teams all the way, they have to sign autographs and be nice to their fans and also participate in various charitable events outside of the playing field, but those are things that they should want to do as part of being a professional athlete, in my opinion. My worry is that the people who really make a difference and impact in society, like teachers who interact with children – who, as cheesy as it sounds, are the future, do not get paid enough. Shouldn’t these influential people receive paychecks close to these athletes? And most importantly, athletes are playing for the love of the game, or so I thought, so payment shouldn’t be the biggest issue with contracts.