Writing in the Real Clear Markets site, Steven Malanga sheds some light on the disparities in the earnings of NFL players, while alluding to other sports too. one of the points that is made clearly is that the income inequality in the sports industry is akin to that of the national economy. All the attempts to moderate those incomes within the industry seem not to yield much benefit especially as the league owners and unions pursue inconsistent objectives. One clear example is the insistence on a random draft for rookies and salary caps.
Income inequality in sports may mirror that in society but one has to say that sports leagues that insist on caps and other anti-competitive measures are probably not going to fully appreciate that mechanisms for efficient redistribution of income are hard to design. Taking account of the differences between sports teams and a national economy, i read the figures with caution but must state that this article emphasizes that distribution of some talents makes the income distribution to assume a power law.
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