fit that organizations are making and the second being the structure of the negotiations processes for each league. These costs are increasing and profits are as well. Although some organizations are willing to pay these costs to field a successful team, there are some that are strictly profit driven and want to do just that. A team that wins usually has a lower profit due to higher costs in the sense of player salaries. "Gene Autry, former owner of the California Angels paid high salary free agents to win championships in the 80's. After only winning two divisional championships, he cut payroll and in 1994, was the lowest in the American League. He was no longer concerned about a World Series as he was about making a profit, even if it meant losing. (Sheehan, 1997) Another cost that organization faces are increasing player pensions. Currently each team pays $2 million plus 10% of player salaries. Travel costs are another large cost for teams to incur, When a team travels, the organization must cover the cost of transportation, hotel and accommodations, and also per diem expenses. The cost will vary for each sport due to the amount of players a team carries. The NBA will cost less to travel than the NHL. In addition to players, there are also coaches, equipment, trainers and sometimes family. Travel expenses can typically run up to $3 million dollars per year. The cost per game may be in excess of $75,000 per season per player or $450 per game for up to 40 people. In addition to travel costs, a team must also factor in game day expenses. If a team doesn't have to pay for travel due to a home game, the organization must prepare all facets of game day operations. These operations may include, field maintenance, security, ushers, facility management as well as facility rental fees. These types of costs may be approximately $60,000 per home game. If an organization owns its own stadium, the costs may be even greater.Player...
