Overpaid Baseball Players and Finance

Overpaid Baseball Players and Finance

How come ball players who play what is, after all, a kid’s game, can earn as much as $20 million to $30 million a year, with multi-year contracts. while top executives, with more honed skills, are criticized if they get $1 million or so?.

Execs are easily fired if they don’t produce. Ball player salaries are not cut if they choke up in the clutch. Or have a losing season.

The argument is made about too much exec pay when they are in companies that get federal stimulus money. But athletes work for ball clubs that also get stimulus and/or other tax payer funds.

As I have often pointed out: Each time a new ball park is built, you can be sure some government body has helped in the financing, whether in cash, tax abatement or bond funding. This is a long-time subsidy.

Federal stimulus funds usually back local and state entities with subsidies. So, in effect, funds are made available to pay athletes.

Always remember: Money is fungible. The payment does not have to be direct. Money can be substituted from one pocket of government or payer to the other, to hide the source of funding.
It adds up to the same total outlay. What you save on ball park purchases and interest on any of those loans, you use to buy and pay players.