Economics of Sports

In an article, titled "The Puzzling Economics of Sports", by Allen R. Sanderson, (http://www.econlib.org/library/Columns/y2004/Sandersonsports.html) he asks the question, "why are professional athletes villified about their salaries, when many other industries earn much more money?"

While people have numerous different opinions on the subject, I personally agree with Sanderson. To answer his question economically, it all comes down to consumers, their decisions, and supply and demand. Consumers are fickle people, and always want to be satisfied. They are always looking to get more for their money. So, why are they willing to spend more for movies and shows than they are for sporting events? Actually, it beats me. If they think they are guarunteed entertainment with a movie, they are risking that money they spend just as much as if they were watching a sporting event. Actors and actresses, who are proven to be paid more than athletes, are just as inconsistent as athletes. Just as Phil Mickelson blew his last tournament by a silly mistake, Tom Hanks can deliver a poor performance in a movie. "The demand for players, or actors or writers, is a derived demand and thus their salaries stem from higher demands on the part of fans for the final good or service they produce." Both athletes and actors are at a high demand, so how can people complain about paying for one and not the other?

I think that athletes are looked upon as the bad guys when it comes to their salaries. Sometimes its rediculous how much money some athletes earn, but usually its minute compared to some actors like Ray Romano who makes about $50 million a year for only a half hour, once a week, for a couple of months. People need to examine both sides of the spectrum before criticizing. For example, people look down upon athletes who use steroids. Steroids, which improve their play, are the equivalent of an actors plastic surgery.

Ultimately, the answer to Mr. Sanderson's question is that people's opinions and objections are false because they are ignorant to the truth, and blinded by the economy,wants, and desires. Consumers need to speculate different options, and consider things they haven't before. You can not measure the importance of value from athletes and actresses, because for all of us the value is different. Thus, the author does an amazing job of making the reader think, and consider things they have never before.