New Laws of Commercial Registration and Trade Names take effect on Thursday    Civil Defense warns of heavy rains across Saudi Arabia until Monday    Saudi Exchange suspends trading of seven companies over financial disclosure delays    New fleet of 76 public transport buses starts operation in Jeddah on Tuesday Environmentally friendly electric buses introduced for first time    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    EU preparing 'further countermeasures' to protect its interest, von der Leyen says    Tesla sales plunge after backlash against Elon Musk    Musk's X is suing India, as Tesla and Starlink plan entry    Israel announces expansion of military operation in Gaza to seize 'large areas' of land    US cancels visa of Nobel Peace Prize winner Oscar Arias    Danish prime minister refutes US claim on Greenland on visit to the Arctic territory    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Cristiano Ronaldo joins Fatal Fury: City of the Wolves    Saudi Arabia welcomes trilateral border treaty between Tajikistan, Kyrgyzstan, and Uzbekistan    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Why do athletes earn such high incomes?
Published in The Saudi Gazette on 23 - 01 - 2025

Patrick, a university student, rushed into the lecture hall, panting heavily. Entering 15 minutes late, he was met with a disapproving glare from Professor Madeleine, a faculty member with over 25 years of experience, earning an annual income of $157,000.
She frowned and said sternly, "Patrick, it seems you're not taking your studies seriously. Your repeated tardiness won't help you succeed in this course. You need to show commitment, discipline, and responsibility to succeed — you might end up homeless or struggling if you fail to graduate."
Patrick lowered his head, catching his breath, and drifted into a daydream about the upcoming college football game, where he hoped to lead his team to victory.
Though not an exceptional student, Patrick was a star athlete admired by the university's fans.
Later that same year, university-wide news broke that Patrick had signed a contract with a major professional football team, securing a $5 million deal for two years of play.
While this story is fictional, it raises a question that many people ponder: Why do athletes earn such enormous salaries? After all, their contribution to society is primarily entertainment, often temporary and fleeting.
Meanwhile, professionals such as academics, doctors, teachers, and law enforcement officers — those who educate, heal, and protect — face challenging jobs and make significant contributions to society but earn far less in comparison.
For instance, Professor Madeleine would need to work for 31 years to earn $5 million, while Patrick, who struggled academically, secured that amount in just two years of his youthful career.
This recurring question — why do athletes earn so much — has an economic explanation rooted in the principles of supply and demand.
The number of elite athletes (the "game changers" like Lionel Messi, Cristiano Ronaldo, and Kobe Bryant) is limited, while the demand for their talent from teams, sponsors, and fans is extraordinarily high. Furthermore, the economic value these top athletes generate is immense.
A related economic concept is the Marginal Revenue Product (MRP) of Labor, which states that a worker's wage is determined by the additional revenue their work generates for the employer.
In the case of professional athletes, their MRP is extraordinarily high because they directly contribute to substantial revenues for their teams, leagues, and sponsors.
A professional athlete's movements on the field are far more than just physical exertion; they create massive waves of economic activity.
Ticket sales, advertisements, broadcast rights, sponsorship deals, merchandise, and even the filling of hotels and restaurants — all of these are directly or indirectly driven by star players.
The very act of a professional athlete moving across the field sparks an economic chain reaction worth millions.
The global rise in sports viewership and engagement further amplifies this value.
For example, according to a BBC report, the broadcasting rights for the English Premier League were valued at £200 million in 1992, but by 2019, that figure had soared to over £5 billion.
Another factor influencing athletes' high salaries is the inherent risk and short career span in professional sports.
A single injury could end an athlete's career. Without proper investment and financial planning, such athletes could find themselves in dire circumstances.
For instance, Brazilian footballer Adriano, once a promising star, saw his career falter due to personal struggles, eventually leading to a significant decline in his financial and professional standing.
Additionally, the average career length of a professional football player ranges from 8 to 12 years, much shorter than that of academics, whose careers can span 30 years or more.
As the saying goes, "The higher the risk, the higher the reward," or, "No risk, no story."
The sports industry itself is a financial giant. According to Global Sport Insight, the global sports industry was valued at $2.65 trillion in 2024, making it the ninth-largest industry worldwide.
Viewed through this lens, professional athletes, despite their high salaries, only claim a fraction of the total value generated within the industry.
The MRP of Labor further illustrates that their wages are a reflection of the immense financial returns they bring, solidifying their position as some of the highest earners in the world.


Clic here to read the story from its source.