Thursday, November 17, 2016

How Do Teams Decide How Much Money To Trade For An Athlete's Services?

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Do you think that right now you could sign a $100 million contract with a professional sports team? Probably not, because you likely don’t have the skills that the team would consider worthy of such a contract. Teams take many factors into consideration when deciding how much money to pay an athlete. Assistant professor of Sport Management Corinne Farneti explains in a video that a number of factors such as the athlete’s past performances and the team’s salary cap help teams decide a salary for a player.


Age can have a tremendous impact on whether a team would be willing to trade for or sign a player. If a player is young and shows great potential, the team would be more likely to trade for him because he would most likely help that team for many years to come. If a player is old and injury-prone, a team would have 2nd thoughts about trading for him because if he has the wrong injury, his time in the league could be over. Older athletes are also generally more injury-prone, so even if the athlete doesn’t have much injury history, the simple fact that he is getting older automatically increases the risk of injury, so teams may seriously contemplating trading for him, but they usually don’t mind trading him.

An athlete in the prime of his career with many terrific past performances may spark the interest of many NBA teams because they know that if they trade for him, he can easily assimilate into their system and make an immediate impact on the team. Many teams who haven’t made the playoffs in years and are looking for an established star rather than trying to develop a young athlete which could take years will try this method to instantly improve their team. An example of this happening in the NBA is the Los Angeles Clippers signing star point guard Chris Paul who at the time was in the prime of his career, and the Clippers were looking for help so they could win a championship. Teams decide whether they want to make an immediate impact or wait a few years and then be good, and they make decisions based on these prior decisions.