The Economics of America's Favorite Pastime
TORONTO, ONTARIO and CHICAGO, ILLINOIS--(Marketwire - July 9, 2012) - In a recent report on the Major League Baseball All Star Game, Brent Schutte, Market Strategist for Harris Private Bank, writes about pay scale disparity of players in a similar comparison to that of the general U.S. working population.
"Players often toil for years in the minor leagues, just making ends meet in an effort to make it to the big show. Once in the big leagues, 'minimum wage' is $480,000 per year but the pay scale escalates to a staggering $30,000,000 per year," Mr. Schutte noted.
Here are some facts from the report about ball players' salary and the U.S. workforce:
- The top 50 per cent of MLB players account for approximately 92 per cent of the players' payroll.
- Roughly 87 per cent of the country's total income is made by the top 50 per cent of the workforce.
- Players who earn the big dollars are the ones who consistently produce. Of the 43 players who comprise baseball's top 5 per cent of income earners, only one individual has never been named an All Star.
Additionally, Mr. Schutte provides data to support the value of a college education to help the average U.S. worker reach the top of their pay scale. Mr. Schutte notes that the workers hardest hit during the recent recession have been those without a college degree. Specifically, those with a Bachelor Degree, or higher, experienced an unemployment rate peak of only 4.8 per cent.
"Quite simply, the marketplace rewards workers who have developed and expanded their skill set with income," said Mr. Schutte.
For a copy of the complete report, visit MLB All Stars.
Harris Private Bank
Harris Private Bank is a trade name used by various financial service providers in BMO Financial Corp. Banking services offered by Harris Private Bank are provided by BMO Harris Bank N.A. and their bank affiliates. Member FDIC. Not all products and services are available in every state and/or location.
BMO and BMO Financial Group are trade names used by Bank of Montreal.
The information and opinions expressed herein are obtained from sources believed to be reliable and up-to-date, however their accuracy and completeness cannot be guaranteed. Opinions expressed reflect judgment current as of this publication and are subject to change. Past performance is not indicative of future results.
Rachael McKay, Toronto
Carey Allen, Arizona