The Price of Winning: The Role of Money in Professional Sports

By: Avery Donnellon

72: The number of combined championship titles between the New York Yankees, Pittsburgh Steelers, Montreal Canadiens, and Boston Celtics.

0: The number of championship titles among 37 different teams across the MLB, NFL, NHL, and NBA.

The notable imbalance begs the question: What makes one team generationally great, while another is lost to the wayside, relegated to an endless cycle of obscurity? 
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The answer should be obvious to any sports viewer: money.

As a sports fan, I am fascinated by the role money has played in many of the teams I follow. From player salaries, like Shohei Ohtani’s recent $700 million contract, to the price of merely developing a team, to the jaw-dropping costs of building a stadium, it is undeniable how important money is in today’s sports culture. 

However, despite my fascination, I realized that I was woefully unaware of why teams make the decisions they do, and where their investments are placed. So, I started looking more carefully at where some teams’ capital was really going. Here’s what I found:

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Salary: New York Yankees

The Yankees are one of the most recognizable teams in the United States, their name alone is synonymous with winning. It’s easy to say because of their history; they have played since 1903, after all. However, that is true of many other MLB teams, none of which have achieved nearly as much success as the Pinstripes have. So, what gives? What do the Yankees have today that other teams, like the White Sox, don’t? ​

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Well, for starters, how about $175 million more?

The Yankees have the second highest payroll in the MLB, at $309 million. This puts them $50 million higher than the third highest payroll, the Houston Astros. Meanwhile, the Chicago White Sox, the worst statistical team in modern MLB history, have a payroll less than half that. 

This is not a new trend either. The Yankees have not had a roster worth less than $100 million since prior to 2000. Meanwhile, the White Sox entire team was worth $31 million in 2000, less money than Aaron Judge makes this year. Needless to say, a team hoping to go far must be willing to invest in their players; and if not, a team must have either 1) a deep farm system, or 2) a strong drafting and development program. 

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Drafting and Development: Kansas City Chiefs
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With the Chiefs looking for their fourth Super Bowl title in six years, it’s hard to believe that their greatest players were not taken in the top five picks in the draft. Patrick Maholmes went tenth overall, the second QB in his draft class, Travis Kelce was not selected until the third round, and current Miami Dolphins WR Tyreek Hill was not selected until the fifth round.

What do they have in common? They are all Super Bowl champions and NFL superstars thanks to Kansas City’s ability to effectively evaluate, draft, and develop talent within their team. 

The Chiefs’ highly talented player development and drafting programs allow them to consistently select and create elite players every season, which they hope to continue with their latest first round pick, WR Xavier Worthy. Unlike the Yankees, the Chiefs do not have a monumental difference in payroll when compared to their rivals, but they have recently been equally as successful. While scouting and development is often overlooked in modern sports, it is hard to deny their impact on a team, and the Chiefs clearly understood the assignment when selecting their staff. 

On top of that, the lack of salary cap on scouting and management staff allows for a team to get as many high-profile scouts and trainers as possible. So, the next time a team finds an amazing prospect deep in the draft, or turns a struggling player into a star, take a second to appreciate the scouting and development staff that made it happen.

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Stadiums - Rams/Chargers

It’s important to remember that while many people would go to war over sports, they are first and foremost a source of entertainment. They draw people from all areas of life to enjoy something together, and one of the most important parts of that experience is the atmosphere. Stadiums create that atmosphere, and no arena displays this more than the $5.5 billion SoFi stadium in Los Angeles, home of the Rams and the Chargers.

The enormous complex can accommodate up to 100,000 fans, and the amenities are truly on another level. Bars, food, and lounges surround the entire building, making fans feel more like they are in a hotel than a stadium. The roof is a set of glass panels that can be left open to allow the sea breeze in, or closed to keep the elements out. Add on the ring shaped video board in the center, getting replays to every seat in the stadium, and the luxury suites with their own bars and lounges, and the arena is a great viewing experience for any L.A. fan. 

But what does this have to do with winning? A nice arena might make the fans happy, but it won’t make the team better, right?

Wrong. It’s important to remember the other parts of a stadium: the locker rooms, the field, the sidelines, and countless other amenities that benefit the home team are hugely improved by this upgrade. Both teams have qualified for the playoffs at least once in the last four years in the building, not to mention that the Rams would go on to win Super Bowl LIII. While they won’t win championships on their own, stadiums are a critical part of a team, and investing in one properly could be what a team needs to get the edge over their opponents at home.

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The uptick in money sunk into sports across the U.S generates an interesting dynamic. On the one hand, investments in player salary, scouting, and stadium improvements greatly improve the on-field performance. However, it creates a concerning trend of increasing costs. Many sports fans are being pushed out by the price of tickets, merchandise, or even watching games on TV through streaming. While it is great to see leagues thriving and certain teams performing better than ever before, it is important to be mindful of what sports are meant to be – entertainment for everyone.