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Salary Caps

Hey sports fans and most of us in real estate are into sports—have you noticed two of the biggest leagues are in lockout (the NFL and NBA) and aside from a few living off the past stars like Derek Jeter baseball player salaries are in decline. David Stern claims that 22 of 30 of the basketball franchises are losing money and blames player salaries.

By Jonathan D. Miller | Updated on July 06, 2011

 Hey sports fans and most of us in real estate are into sports—have you noticed two of the biggest leagues are in lockout (the NFL and NBA) and aside from a few living off the past stars like Derek Jeter baseball player salaries are in decline. David Stern claims that 22 of 30 of the basketball franchises are losing money and blames player salaries. The NFL lives off multi-billion dollar a year TV contracts, but more fans resist the big ticket prices. At Yankee Stadium, the premium seat sections are never filled and many of the fans sitting in those seats buy them discounted off Stub Hub. Meanwhile, many cities and states think twice about subsidizing sports stadiums and arenas when roads are potholed and teachers get laid off.

The whole inflated sports salary phenomenon was emblematic of our over-spending, over-borrowing leading into the 2008 crash. Now sports team owners are figuring out that the average fan can’t afford to go to as many games or pay as much for gross ballpark food. Games still serve as a good distraction from life’s demands, but those demands (like earning enough to keep out of debt) take increasing priority. And the players like most everyone else will be making less too.

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