Thursday, March 12, 2009

The supply curve of professional athletes

There is a problem in the MLS. There is a barrier to entry for foreign players into the professional soccer teams in America. This means that each team can only have a limited number of foreign talent. Where is the problem? The problem is that this barrier has a negative effect on the supply curve for professional athletes. The market is limited to mainly national players. This means that for the most part there are no international substitutes. This causes the price of the substitutes that there are to be very high . This in turn causes the supply curve for national players to shift to the right. More players are purchased for a cheaper amount of money. This happens because the teams need to save money for the more expensive international players. This also causes two negative effects. The better national players face an opportunity cost. They can play in the MLS for cheap, travel abroad for less money but better experience, or possibly get another career. Unfortunately for the condition of American soccer the second option is chosen far too often with players going to contries like Bulgaria to get bench time when they could be making huge impacts here. Another problem is that since American players are now getting paid much less, the quality of these players also decreases. American soccer needs reform.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.