Name ________________________________ Date _________________________ Period ____
Chapter 5 Real-Life Case Study Activity
Are Professional Athletes Overpaid???
Focus:
Free agency has significantly increased the earnings potential of
professional athletes; at the same time, however, such high salaries have led to
increases in ticket prices and the perception that the best teams will always be
those with the most money.
Introduction:
Do you believe that current salaries for professional athletes are
justified on the basis of supply and demand, and why/ why not?
Now discuss whether salaries should be based instead on the importance
of the job to society?
 Next, read page 121 from your textbook (see attached copy). After reading the article,
answer the two question following the reading. Please answer completely and wordprocess your responses.
 Now, select six (6) professional athletes, no more than two from the same professional
sport. Find out the current salary of each athlete and that athlete’s salary since they
entered the sport at the professional/ “major league” level. [Do not include income from
endorsements]. Use the following websites or your own to assist you. Please print the
web pages you find your information. Make an Excel spreadsheet using all of your
data. Discuss your findings, trends, and analysis in a word-processed paragraph.
Major League Baseball:
http://asp.usatoday.com/sports/baseball/salaries/default.aspx
National Football League:
http://asp.usatoday.com/sports/football/nfl/salaries/default.aspx
National Basketball Association:
http://asp.usatoday.com/sports/basketball/nba/salaries/default.aspx
National Hockey League:
http://asp.usatoday.com/sports/hockey/nhl/salaries/default.aspx
***Feel free to search for other websites, just be sure that it is
accurate, up to date, and that you provide me with that website.
 Now, select four (4) professional teams, no more than two from the same professional
sport. Find out the current payroll and the current median (average) salary of each team
and that team’s payroll and median salary for the previous four years. Use the websites
listed above or your own to assist you. Please print the web pages you find your
information. Use this information to make an Excel graph for each. Be sure to
completely label your graphs. Discuss your findings, trends, and analysis in a wordprocessed paragraph.
 Next, select two (2) professional teams from each of the four major professional sports
(baseball, football, hockey, and basketball). Find out the current average ticket price of each
team. Also find out the current average price of the following items sold at a stadium or
arena for each of the teams you selected:
16-24 oz. soda, hot dog, parking, program, and hat/ cap.
Use this information to make an Excel spreadsheet for each. Discuss your findings,
trends, and analysis in a word-processed paragraph.
 Also find out the Fan Cost Index (FCI), which tracks the cost of attendance for a family
of four. The FCI includes: four average-price tickets; four small soft drinks; two small
beers; four hot dogs; two game programs; parking; and two adult-size caps. Find the FCI for
two (2) teams in each of the four major professional sports Use this information to
make an Excel spreadsheet for current prices. Discuss your findings, trends, and
analysis in a word-processed paragraph.
 Use the following websites or your own to assist you. Please print the web pages you
find your information.
Current Information:
http://www.teammarketing.com/fci.cfm
 Next, find the attendance figures of eight (8) professional teams over the last four (4)
seasons in which data is available, only two teams from the same professional sport. Use
the following websites to assist you or your own websites. Create another Excel
spreadsheet and graph. Do a separate graph for each team. Discuss your findings,
trends, and analysis in a word-processed paragraph, be sure to discuss the
relationship between attendance, ticket prices, and athlete salaries.
Major League Baseball:
http://sports.espn.go.com/mlb/attendance
National Football League:
http://sports.espn.go.com/nfl/attendance
National Basketball Association:
http://sports.espn.go.com/nba/attendance
National Hockey League:
http://sports.espn.go.com/nhl/attendance
 Finally, based on your research above answer the following in a one-page, wordprocessed essay:
o Are professional athletes overpaid, underpaid, or paid the right amount?
o Are fans paying too much, too little, or paying what they should to attend a
professional sporting event?
o Are the teams with the most money usually the best teams?
[In writing your essay please discuss and keep in mind the laws of supply and demand.
Also, be sure to explain and support your view to EACH question with at least two
examples].
Name ________________________________ Date _________________________ Period ____
Chapter 5 Real-Life Case Study Activity
Are Professional Athletes Overpaid???
Grading Rubric
Your Partner ___________________________
Answers to two (2) questions on page 121 of textbook
____/5
Six (6) Professional Athletes’ Salaries
____/10
(includes print out on each athlete, Excel spreadsheet, and paragraph)
Four (4) Professional Teams’ Payroll
____/10
(includes print out on each team, Excel graph, and paragraph)
Eight (8) Professional Teams’ Prices Fans Pay
For Tickets, Food, etc.
____/10
(includes Excel spreadsheet and two (2) paragraphs)
Fan Cost Index (FCI) Information for Eight (8) Teams
____/20
(includes Excel spreadsheet and two (2) paragraphs for current and prior FCI)
Eight (8) Professional Teams’ Attendance figures
____/20
(includes Excel spreadsheet and graphs for each team as well a the paragraph)
One-page, word-processed essay answering the final three (3)
culminating questions
____/15
(essay shows evidence of support for opinions with at least two examples for each question)
Your level of participation
____/5
On-time
____/5
FINAL GRADE……………………………………………………… _____/100