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by matt4077
3518 days ago
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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). |
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It's plainly obvious that the exorbitant salaries that players and owners are paid has to go away for the industry to survive.