Why Player Salaries and Franchise Values Keep Going up

It happened again this week. The National Football League’s Los Angeles Chargers (winners of zero Super Bowls) announced that quarterback Justin Herbert signed (at least for today) the richest deal in NFL history.  The QB has a new five year contract worth $262.5 million. Cincinnati Bengals (and former LSU) quarterback Joe Burrow may become the next player sign a new record NFL contract soon.  At least Joe’s Bengals have played in a Super Bowl two years ago and become a top AFC top contender after his arrival. In the National Basketball Association, the Boston Celtics announced this week that high scoring (but turnover prone) guard Jaylen Brown signed a gigantic contract extension.  Just like Justin Herbert of the NFL, Jaylen Brown’s new deal made him the NBA’s highest paid player (at least for today).  Jaylen Brown’s new five-year deal is worth a cool $304 million (yes, more than $60 million per season on average). In the case of the Boston Celtics, Jaylen Brown isn’t even the best player on his own team!  If we are dividing up Celtics players for a pick-up basketball game, Boston forward Jason Tatum would be the first C’s player most people would select. Why are these professional athletes being paid so much money?  It’s because YOU, the sports fan, who will continue to pay for it in the years to come! Today, it is my solemn duty to dust off a few old lessons from the SwampSwamiSports.com School of Professional Sports Team Ownership. For a few moments, let’s pretend that you have just won the lottery and have come in possession of $10 billion (after taxes, of course)!  Your personal dream has been to buy one of your favorite professional sports franchises.  At least for today, $10 billion is enough money to do that. Why would anyone want to own a professional sports franchise?  There are many reasons. Some sports owners enjoy the limelight and glamour associated with being one of the relatively few people who own a nationally known sports franchise.   People like Dallas Cowboys owner Jerry Jones or former New York Yankees owner George Steinbrenner come to mind.