oing to go out of business within five years. We find that the PGA simply watches its game grow richer purses, more television exposure and more people playing golf. The Tours purses quadrupled in the past 15 years, going from $13 million in 1980 to about $60 million this year. Every PGA Tournament and 30 senior events are televised domestically and American professional golf is now beamed to 112 countries. (Life is good for PGA Tour commissioner Finchemweb).Though Finchem (Tour commissioner who was President Carter economic adviser in 1978-79.) game has grown increasingly large, he admits that competing for the sports dollar long-term is much more challenging now than it was five years ago. He said that companies are more demanding, they have a lot more options on how to spend their money."Since only the top players in each individual tournament receive pay and there happened to be different players almost every time. Last years only six of the 326 players on the PGA Tour money list-made more than $1 million. In baseball, about 220 of the 831 players on this year's opening day rosters-27 percent-made $1 million or more.There are a few economic problems within the sports industry. One major problem is called competitive imbalance. Competitive imbalance has to do with the fact that only a small amount of professional teams have the money and the talent to compete with other teams in their league (Markiewicz 1). The other big problem is that attendance at professional sports events is declining. Competitive imbalance is an economic problem because if a team only makes a small amount then that team can not afford to pay the big dollars that is required to sign star players and with out these players it is hard for teams to remain or become competitive. As a result of this, the team will begin to loose money. In an attempt to fix this many teams will lower their payroll even more, hoping that if they spend less, they might be able to...
