Major League Baseball Salary

The Major League Baseball Association (MLBA) decided to issue a luxury tax in February of 1997. Paul D. Staudohar a sports analysis provides further insight about the luxury tax "in a sports sense it 's a surcharge put on the aggregate payroll of a team to the extent to which it exceeds a predetermined guideline level set by the league." The apparent purpose of this "tax" is to prevent teams in major markets with high incomes from signing almost all of the more talented players and hence destroying the

Players that are in the pros make the big bucks. Some of the top notch players in each sport make millions and millions of dollars. For instance Albert Pujols plays baseball and is arguably the best player to play the game right now and signed a 9 year contract that is worth over 200 million dollars! Football fight to get bigger salaries because they feel the need to get paid more since they have a greater risk of getting injured. Baseball the players don’t argue as much as football players when it comes to salary.

Twenty-five million dollars made per year. Over one hundred fifty-four thousand dollars made per game. Over forty-seven thousand dollars earned per at bat. Sounds a little ridiculous, does it not? That is what current Texas Ranger shortstop Alex Rodriguez earns to play the game of baseball (azcentral.com). Baseball is a game that children have been playing in schoolyards and fields for the past one hundred years. It may not be a game anymore. On the Major League level it has become a business. This is where the problem starts.

Every year, it becomes more obvious that many sports in America have problems. For years, Hockey has been criticized for its excessive violence. The National Football League has also been scrutinized for this reason as well as the fact that many of the top players have constantly been in trouble with the law. Major League Baseball is no different. The situation with baseball is more complicated, and is not only ruining the game itself, but also drawing millions of fans away from the sport. The biggest problem is with the high salaries paid to athletes. These salaries are taking the competitiveness out of several sports, especially baseball, where there is no salary cap. Action must be taken

The debate between the team owners and baseball players was a low context communication that resulted from years of hostility and mistrust. The team owners had no respect for the talents and skills of the baseball players. They did not want to relate to the players and their point of view. They used their power and position to implement the salary cap without input from the baseball players. Due to the mistrust and disrespect it was almost impossible to discuss the interests of each party during the negotiation. Also, the owners didn't take into account that the money would affect the baseball players, baseball players affects the games and the games affects all the stakeholders (Holism). This type of culture lead to an unsuccessful negotiation which I will provide some factors of the negotiation between the owners and players next.

Baseball is considered America's pastime as it is steeped in history and prestige. However, due in part to the emergence of alternative sporting events such as skateboarding, snowboarding and competitive biking, the profits previously garnered within the industry are not growing as fast as they once where. In fact, in many instances, individual player salaries are outpacing the growth of ticket and television revenue. Table 1 within the appendix was constructed by Michael J. Haupert, a professor at the University of Wisconsin. The table depicts TV revenue (excluding local markets), average ticket price, and average player salary from 1964 to 2002. For your convenience the pertinent information is highlighted in yellow. As depicted from the chart, total television revenue from 1964 to 2002 increased nearly 1000% on an inflation adjusted basis. During this same period however, player salaries have increase by over 2500%. Likewise, average ticket prices have not increased by this magnitude either (Haupert, 2010). Futhermore, according to the Forbes, every team in baseball with the exception of one (The Florida Marlins) spent at least 80% of their revenue on baseball operations last year. These operations include player salaries as well. The percentages vary and ranged from the Detroit Tigers who spent 116% of their revenue (operated at a loss), to the Marlins who spent 68%. Seventeen teams spent 90% or more on baseball operating expenses (Pasnanski, 2010). To many individuals,

For prospects that are forced into the minor leagues for development, the road to the majors has proven a grueling process and the majority of players never make it to the major leagues. Extremely low salaries and bonuses in the minor leagues has become an ongoing, controversial topic between MLB commissioner Bud Selig and minor league players 17. A fast food worker makes between $15,000 and $18,000 a year, which is two or three times as large as minor league players’ average salary, so minor league players are forced to have multiple jobs throughout the year 18. The majority of minor league players lie below the federal poverty level and while MLB salaries are rapidly increasing, minor leagues salaries remain constant. The MLB receives exemptions

Major League Baseball is the only major professional sport that does not have a salary cap (the maximum in total payroll that a team can pay its players). For example, the National Football League has a salary cap for 2004 of about $75 million and the National Basketball Association has a salary cap for 2004 of approximately $44 million. There are multiple reasons for a salary cap but two of the underlying reasons are parity (equality) and competitiveness. It is assumed that without a salary cap, large market teams such as New York, Los Angeles, and Chicago will be able to ‘buy up’ all the good players leaving the small market cities such as Minneapolis, Cincinnati, and Phoenix with the less-talented left-overs. Additionally, teams that win more games and make the playoffs and World Series receive extra revenue from TV, thereby creating even more of a discrepancy if large market teams have an advantage in winning more games and playing in the post-season.

Three out of four of the most popular sports in America all have salary caps in their organization. Salary caps are meant to keep the league competitive, control cost and increase overall league revenues. Sports that are seen as more competitive and fun to watch will boost tv ratings which will then lead to higher profits from their sales and advertisement. Without a salary cap, big named teams that are popular and successful will have more money for free agency to stack their team, since they can make the best offers. In the MLB there is not a salary cap, which puts teams like the New York Yankees or the Los Angeles Dodgers that have more money than other teams in an advantage. You can see what teams will be successful in the MLB before the

In Major League Baseball, there is no commision for every player, so, they earn from roughly 400,000 to 32 million dollars. While agents earn from 16,000 and 4 million. Since they work a commission based check, the players that only go to practice still make as much as the game players. So while some jobs that you may work harder for, the game players earn more than them.

Babe Ruth, player on the Boston Red Sox baseball team was purchased by the Yankees today for the largest cash amount ever paid for a player. The New York club paid Harry Frazee of Boston $125,000 for the phenomenal batsman who last season caused such a controversy in the national game by batting out twenty-nine home runs, a new record in long-distance strike. Colonel Ruppert, President of the new york yankeys, said that he had taken over Ruth's Boston contract, which has two more years left. This contract has a salary of $10,000 a year. Ruth recently announced that he would not play for $10,000 next season, although the Boston Club has not gotten a request for a raise in salary. Manager

NHL free agency begins on July 1, and there are many sought-after free agents testing the waters. Before teams get the go-ahead to make signings official, they've been active with clearing cap space via trades and buyouts. Though the NHL is rarely predictable, some of those trades were downright surprising.

The reason MLB players make so much is because there are 162 games per team a season not including the playoffs. Where as in the NFL there are only 16 games not including the playoffs. With baseball players playing multiple games per week & football players playing one or two games a week but usually one the money start to add up. It has also been argued that college athletes should be paid for what they do. While the NCAA is completely against collegiate athletes getting paid. However, that does not stop some players from getting money. Houston Texans running back Arian Foster came out and said in an interview that while playing football at Tennessee he took money on the side because he didn’t have enough money to eat. “My senior year I was getting money on the side.”- Arian Foster. “I really didn’t have any money. I had to either pay rent or buy some food.”- Arian Foster Also just last season Texas A&M Quarterback Johnny Manziel was put under investigation by the National Collegiate Athletic Association (NCAA) for supposedly receiving money for a large amount of autographed memorabilia that he signed. The NCAA is completely against collegiate athletes receiving money.

Year of 2007 describes a different picture. The average baseball player gets paid $4.8 million. We consider the fact that the cost of living, products and services has grown in recent decades. But it does not give us any explanation if Babe Ruth had a better standard of living than the average baseball player now, because prices for goods

Major League Baseball is known as America’s favorite pastime, and MLB teams spend an extensive amount of money in the excess of a billion dollars with the ultimate goal to win the World Series. This learning team’s focus throughout this descriptive statistics paper is the MLB players’ performances, salaries, salary caps, and winning percentages. Though salaries will by no means be a trade for wins, the goal is to use the less experienced players and pay them a lower salary. Research has been done on whether or not player’s salaries and wins are connected.