1 answer
Landon
Student
Redmond, Oregon
1
Question
Updated
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In the sports business world, how do teams determine a contract amount? What do they look at in a player, and how much are their skills worth?
I am interested in majoring in sports business in college, and I am curious about how these processes and deals happen. Sports have always been a big part of my life, and I want to work in a field that I love.
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1 answer
Jane Akinyemi
Lecturer
22
Answers
Salem, Massachusetts
Updated
Jane’s Answer
Hi Landon
It is important to know that if you work in sports business, understanding how teams evaluate players is essential. Contracts are based not only on athletic skills but also on how much a player can help the team financially and strategically. Knowing this helps you understand the full value a player brings to a franchise. Teams decide how much to pay players by looking at different factors. They consider how well the player performs, how marketable they are, how much they can help the team financially, and their potential for the future. Teams look at what players do during games and how they help the team build its brand, increase revenue, and meet strategic goals. Teams also check Performance Metrics like goals, assists, batting averages, or defensive skills. They also use advanced numbers, such as player efficiency ratings in basketball or WAR in baseball, to see how much a player helps the team win. Your marketability and fan engagement should be able to attract sponsors. Teams evaluate how much a player’s presence can increase revenue streams. Based on this, the team might offer a contract of $30–35 million per year, balancing performance and market impact.
I hope this helps, wishing you the best in your endeavor.
Dr. Jane Akinyemi
It is important to know that if you work in sports business, understanding how teams evaluate players is essential. Contracts are based not only on athletic skills but also on how much a player can help the team financially and strategically. Knowing this helps you understand the full value a player brings to a franchise. Teams decide how much to pay players by looking at different factors. They consider how well the player performs, how marketable they are, how much they can help the team financially, and their potential for the future. Teams look at what players do during games and how they help the team build its brand, increase revenue, and meet strategic goals. Teams also check Performance Metrics like goals, assists, batting averages, or defensive skills. They also use advanced numbers, such as player efficiency ratings in basketball or WAR in baseball, to see how much a player helps the team win. Your marketability and fan engagement should be able to attract sponsors. Teams evaluate how much a player’s presence can increase revenue streams. Based on this, the team might offer a contract of $30–35 million per year, balancing performance and market impact.
I hope this helps, wishing you the best in your endeavor.
Dr. Jane Akinyemi