The Study of Sports
SPORTS STARS CAN MAKE MILLIONS OF DOLLARS THROUGH ENDORSEMENTS AND PRIZE MONEY WHILE INDIVIDUALS WORKING IN CERTAIN SERVICE PROFESSIONS LIKE NURSING, TEACHING ETC REMAIN RELATIVELY POORLY PAID. THIS IS AN UNACCEPTABLE DISTRIBUTION OF ECONOMIC REWARDS.
Although footballers are criticized for making millions of dollars through prize money and endorsements nevertheless their higher incomes then professionals such as teachers or nurses are justified because of the rare talents they posses, principal of demand and supply, and the role model image associated with them as a result of willingness of people to pay for them which makes them earn these huge sums of money.
Footballers have higher annual earnings because of the rare talents they posses. Each footballer has a unique quality which makes him different from other footballers whereas nurses and teachers have homogenous skills which leads to the demand for footballers being much higher than their supply and the demand for professionals such as nurses and teachers being lower than their supply. Statistically speaking, in 2009 the registered number of teachers in USA were approximately 7.2 million and the registered nurses were about 27.374 million (“Newsroom”). This data is for USA only and still the numbers are so huge. This shows that the number of such service professionals is way too much higher than the number of footballers and this makes both the groups function in different market structures. Homogenous skills and high supply makes the market for service professionals a perfectly competitive one where everyone is a wage taker and no one in the market can individually affect the prevailing equilibrium wage. Equilibrium wage is at the point where demand and supply forces intersect, in case of service professionals demand being lower then supply the equilibrium wage turns out be lower than those of footballers where demand is higher than the supply causing equilibrium wage to be quite high. The unique skills
Although footballers are criticized for making millions of dollars through prize money and endorsements nevertheless their higher incomes then professionals such as teachers or nurses are justified because of the rare talents they posses, principal of demand and supply, and the role model image associated with them as a result of willingness of people to pay for them which makes them earn these huge sums of money.
Footballers have higher annual earnings because of the rare talents they posses. Each footballer has a unique quality which makes him different from other footballers whereas nurses and teachers have homogenous skills which leads to the demand for footballers being much higher than their supply and the demand for professionals such as nurses and teachers being lower than their supply. Statistically speaking, in 2009 the registered number of teachers in USA were approximately 7.2 million and the registered nurses were about 27.374 million (“Newsroom”). This data is for USA only and still the numbers are so huge. This shows that the number of such service professionals is way too much higher than the number of footballers and this makes both the groups function in different market structures. Homogenous skills and high supply makes the market for service professionals a perfectly competitive one where everyone is a wage taker and no one in the market can individually affect the prevailing equilibrium wage. Equilibrium wage is at the point where demand and supply forces intersect, in case of service professionals demand being lower then supply the equilibrium wage turns out be lower than those of footballers where demand is higher than the supply causing equilibrium wage to be quite high. The unique skills
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