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by matt4077 3518 days ago
Sports is the one area where it basically costs whatever people decide. IF ESPN goes belly-up, somebody will buy the rights for less money, and the cycle continues until it finds a new balance. There's a lot of flexibility in players' salaries and owners' profits that can only exist because professional sports leagues operate in a somewhat inelastic market (you're not going to switch to watching ping pong just because it's cheaper).
2 comments

That's ultimately what has to give here. Bundling sports channels into cable packages has allowed a bubble to form in the compensation of players and owners. As the article correctly assesses, it is an enormous tax that is passed on to everyone with a cable or satellite subscription.

It's plainly obvious that the exorbitant salaries that players and owners are paid has to go away for the industry to survive.

>>Sports is the one area where it basically costs whatever people decide

I wish this was true, and with cord killing and Ala carte media becoming more of the standard it will be, but Sports today, especially major sports like NFL, MLB, etc have a hugely over inflated cost because of bundling.