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The. Economics. Of. Baseball. Presentation By: John Lyons Thomas Mauro Ryan Rogan. Are player salaries too high?. Baseball salaries topped $2 billion for the 1 st time in 2002. $126 million by the Yankees led the league.

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  1. The Economics Of Baseball Presentation By: John Lyons Thomas Mauro Ryan Rogan

  2. Are player salaries too high? • Baseball salaries topped $2 billion for the 1st time in 2002 • $126 million by the Yankees led the league • Players will earn $2.023 billion up from $1.934 billion last year • Average salary rose 5.2% from last year to $2,383,235 • From 1967 when the salary was $19,000, average salary increased 126-fold while the CPI has gone up only five-fold since then. • Baseball player average salary (per day) = $13,000 • The average annual household income in US = $57,045

  3. Facts and Figures Cont. • What about other sports? • NBA averaged $4.2 million • NHL averaged $1.4 million • NFL averaged $1.1 million • The gap is growing between the rich and poor teams since the 1994-1995 strike

  4. *Click on Charts for Source

  5. Sources of team revenue • Ticket Sales • Venue (stadium) revenue • Media revenue • Because of the low amount of revenue taken in by some clubs, the league has thought about eliminating 4 of the teams – Milwaukee Brewers, Montreal Expos, Minnesota Twins, and Tampa Bay Devil Rays, however they have decided on to hold of this decision until more studies are done.

  6. Conclusion • Baseball clubs get the majority of their revenue from the fans who pay to come and watch the games. • Fans are drawn to clubs that have big name players or clubs that have a good team. • Owners are pressured to draw the big name players with money to keep their teams profitable. • Baseball, while once a sport, has turned into big business.

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