Average salaries of the four major sports leagues:
NBA = $11,900,000
MLB = $4,900,000
NHL = $3,500,000
NFL = $2,700,000
The three factors (outside of talent) that determine these salaries:
1) Revenues
The more money the league makes, the more money each player makes, right?
Not so fast.
The NFL is king at more than $20B.
Yet their players earn the least of the four.
The NBA while north of $12B only puts them in third amoung the leagues, yet their players make the highest average salary.
Why?
2) Roster Size Being an NBA player is far harder than being an NFL player.
Don't believe me, just look at the number.
An NBA roster has 15 players. An NFL roster has 53 players.
More mouths to feed means less for everyone at the table.
3) Collective bargaining agreement (CBA)
This is the agreement between the players and the league.
The king = MLB players union.
Why?
They have locked out.
They have a united front.
They have strong financial footing.
The result?
No salary cap.
Fully guaranteed contracts.
-
Professional sports are a business first.
Players have 1-10 years in most cases to earn for a lifetime.
Outside of talent, these factors set earning power:
*Revenues
*Number of players per roster
*Collective bargaining agreement (CBA)
***If you enjoyed this, share it with someone and follow along for more at the intersection of sports and money