Thursday, November 15, 2007

Ooohhhh....Collusion in Baseball???

Given how much Alex Rodriguez wants to play baseball for the next 10 years...it may not be a bad idea! I say collude away :)

http://www.time.com/time/nation/article/0,8599,1683340,00.html

How in the world can we justify paying people this kind of money? Ooohhh...think factor markets as well!

11 comments:

matt--- said...

the entertainnment business can always get away with collusion and outrageous paychecks to players, actors ect... in this case it is justified because Alex Rodriguez is a talented player who can help his team win games and fill stadiums...the same happens in movies...famous actors get paid alot of money to star in movied because directors want famous people in their movie to fill theaters...i cant really think of an example of collusion that happens in any market unless it is entertainment...

Tyler said...

I agree with the comment from the Atlanta coach- its insane for A-Rod to be asking for this much money, and baseball is a team (not individual) sport. A $350 million dollar contract is a fair share of the GDP of a small country. And for what? Being a great professional athlete in a huge industry in the US.

Yes, collusion is illegal, but if teams don't get together on this one and set a price ceiling for player salaries, other players will quickly follow suit and start asking for more money as well. In this sense, I don't know if it is colluding as much as meeting to talk about the rapidly evolving nature of baseball business. Never before has a player asked for this much, and so boldly. Few soccer, basketball, and football players get paid as much as baseball players. Yes, baseball is the most popular sport on the US, but the high demand doesn't justify the outrageous wages.

emilie said...

Normally collision is seen as illegal and wrong in an oligopoly because prices are not meant to be set. In this case, I think the teams are doing the right thing to gang up against A-Rod, even though it is illegal. He does not deserve that kind of money ($350 million... is he insane?), even though he is a talented player. If all the teams can stand up against his request, it would save the whole market by setting a vague limit for the price of players. Like Tyler said, even though Americans follow baseball and it is popular, it does not justify the huge wage he is requesting. I just hope the teams don't get sued for collision because the fact that A-Rod asked for that much is as equally bad!!

Jamie Ng said...

Well I think collusion should not happen in oligopoly no matter how absurd the price A-Rod is asking for. If the team thinks that he is overpaid and not worth it, then just don't hire him. There isn't much reason to discuss about the players' salaries since it should be an individual decision.

Debora said...

Man, i really think that Alex Rodriguez does not have the true spirit of a baseball player!!!! Yes, he is a talented player, but baseball is not about the individual but about the team. Like emilie said...is he crazy?? $350 million.....:O.
I think that the teams are doing the correct thing by colluding..and it is not EXACTLY colluding..in this case only one player will not be getting what he wants! It's not as if ALL players will be paid a ridiculously low price or anything. The teams are not "colluding" for bad intentions toward the players, it's to make this crazy person have a little more common sense!

Ezequiel said...

I really believe that this player is allowed to ask for whatever money he wants, and if he deserves it the teams will pay.
What's wrong with teams paying this amount of money to players? If that player is worth that amount of money, then they should pay him 350 million.
You want it, you gotta pay the price.

Luisa said...

Even though I understand how many famous athletes and celebrities can get away with recieving outrageous salaries, I think the money this man is asking for is quite ridiculous, even if he is high in demand right now. In this case it is completely justifiable that teams get together to set a reasonable price in order to ensure that other players don't follow suit. Many sports are already becoming morte centered on individual players instead of on teams, and while that may seem like a good thing for those selling tickets and trying to fill stadiums, it gives those individuals a great deal of power over the sports market which they should not have. So as long as they come to a reasonable price, I think a collusion is the best option in this case.

Michael said...

well... i dont think its wrong for either side to do what they are. He can ask to be paid what he wants just like i could ask to get paid 350 million to go to school. Now noone is going to pay me and its the same for him... just that to prevent one team from caving in because idk.. the agent lies and says that the player already has a bid so they need to act fast... now all teams know that they just need to not hire him.

Dante said...

I belive there is nothing wrong with asking for his $350 million dollars, remeber it is over ten years... I mean if he is the best player right now in an industry with 6 billion in annual revenue in ten years he can probably easily pay them back. If collusion occurs in the other hand, the lack of competition may cause him to be froced to earn a much smaller salary, just increasing the profit of the first GM to sign him.

Think of it like winning the lottery, Alex Rodriguez won the lotery because of his great natural talent in baseball. The odds are heavily agaisnt you if you want to be in the baseball league and then to top that off be one of the best in the whole league. It's like being one in millions, a lottery winner, and no one thinks it's wrong to get alot of money if you win the lottery...

Nicolas said...

I must agree with what Eze and Jamie have said about A-Rod. He is a free man and can ask for any amount of money he wants. If the team thinks it is worth it to pay such a great sum of money in order to achieve a man who can win you games, then let them pay it. If they think the amount of money is absurd, then just let him go. Collusion, in my opinion, should not be done in this case, because arod is not forcing the team to pay him.

carl said...

The problem with A-rod's salary is not simply a matter of collusion on the part of the teams. Another aspect in the high wages of sports stars in general is the agent system in place. The fact that most athletes are signed to a handful of prominent agents, such as Scott Boras in the case of A-rod, make the labor market a monopoly. The agents control who and for how much a player signs for, meaning they can charge a higher price than the market would allocate.