Friday, December 26, 2008

Free Market System Destroying Sports In America


As news spread of Mark Teixeira signing a big contract with the New York Yankees, sports fans wondered how far is this going to go? America is the land of opportunity and free enterprise. No longer do you have to manage a good ball club to build an empire. You do it with business savvy. Now we know that the Yankees signing of the big three of Sabathia, Burnett, and now Teixeira doesn't guarantee a championship, right?

But it does guarantee people in the seats, and a ton of merchandise. A lineup that will be similar to an all star team. Adding those three to an already stacked team will make the E Empire the envy of modern sports. It seems that this move is risky business if the Yankees don't win the championship, they already have. Not the world series type but the revenue champion. You see, clearly all the young impressional generation coming up will start to join the dark side. When they become buying units as adults, the empire wins in the form of merchandising and allegiance.

Get them while they are young. Advertisers and sponsors will follow also. The salaries owners are dishing out have outpaced inflation so much it reminds me of everything that is surrounding our economic circumstance. A BIG FREE MARKET BUBBLE that must contract somewhere, sometime in the near future. We saw it in the internet, real estate, mortgages, and now sports. Something has to give. Fans can not go on indefinitely supporting the money that goes into sports.

College sports is big business, there are a few institutions and conferences that monopolize the money and keep the power in their grasps. Is this what college sports should be about. With the advent of cable tv and now high definition, revenue from these delivery systems will endow these schools and conferences even more. Advertisers, however will be curtailed as the economy slows down. Advertisers are the ones that foot the bill for College sports. Consumers buying these advertiser's products are what is driving the revenue.

If the economy slows down, then this may cause a domino effect, causing revenue in professional sports and college sports to a screaching halt. Hence another bubble burst, then how are those salaries going to get paid? Capitulation, reverting back to sanely salaries that made sense. Time for sports in America to get back on track and figure out - why we play the game? Money sometimes yes, but insane money, no!

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