development is a key tool in professional sports. In order to field a successful team, their must be recruiting and scouting of younger talent to take the place of already existing talent. Within many professional sports there are minor leagues set up to insure this player development. The NHL, MLB and MLS all have minor league systems, which they fund. The cost for these developmental leagues may cost up to $7 million per year. The last, yet most minimal cost organizations deal with are the administrative salaries. The average administrative cost per team is approximately $3 million. When taken in to consideration, the average player is making an extremely higher paycheck than those who actually run the organization are. Yes, it is true that without the players, there would be no need for an administrative team but, without the administrative team, there would be no team for the players to play on.Although organizations are faced with many costs, it is the job of the management to offset these costs and turn them in to profits. However, depending on the skill level of the management, profits may or may not be achieved. The way most organizations will insure a profit is to cut or manage these costs. Management will often find new ways to generate new revenues through new marketing ideas or promotions. Corporate sponsorships, partnerships, mergers with other businesses and media have all been huge providers of revenues for professional sports. Revenues and costs are often derived from each other. If costs are high, such as player costs, revenue tends to be higher due to success of a team. Although revenue may be high, profit may not. In the opposite cases, if costs are low, revenues may also be lower but, because costs aren't as high, there is more of a profit. This year the New York Yankees payroll is at approximately $85 million. This is a prime example of paying your players to win. The lack of concern for profit w...
