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Originally Posted by RastaRocket
The distribution they agreed to in the new CBA.
We are actually studying wage determination in professional sports in my Labor Economics class. Later in the semester I will have a more educated answer. We have already covered it in a brief course overview and ultimately from what I can remember it comes down to the Labor Market supply and demand (like everything). It's a rare skilled labor that brings in massive revenue (low supply, high demand) so the price of athletes is traditionally always very high (demand). Just look at the difference between superstar salaries and league minimum salaries. Most of the money is made by the players in highest demand. The rookie wage scale is the equivalent of the government (the owners) putting a price ceiling on the market. Price floor would be the minimum salary. It helps spread the money to the veteran players who have earned it.
[View Full Quote]It has all the properties of any other market in which equilibrium comes down to supply and demand. |
None of that addresses the overall market itself being overvalued.
In the final two months of 2011, Romo’s passer rating was 115.9.
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