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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.


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